Young adults are being encouraged to check for any overlooked or misplaced Child Trust Fund accounts. Recent data from HMRC reveals that 758,000 individuals aged 18 to 23 have not yet claimed their matured Child Trust Fund, averaging £2,242 per account. The amount in each account varies based on the savings contributed.
Child Trust Funds were initiated by the Government for children born between September 1, 2002, and January 2, 2011, with an initial deposit of £250 or £500 for children from low-income families. Families could then annually contribute up to £9,000 to the account, and the funds can be accessed upon turning 18.
For those unsure about their Child Trust Fund provider, they can utilize the GOV.UK locator tool by providing the account holder’s National Insurance number and date of birth. Despite not being government-held, these accounts are managed by banks, building societies, or other financial institutions.
Over 563,000 young adults searched for their Child Trust Fund accounts online in the previous 12 months, with September 2024 being the peak month for searches. The London Foundation for Banking & Finance CEO, Shelley Doorey-Williams, commended HMRC’s initiative to reunite individuals with their funds, emphasizing the financial assistance it can provide to young people.
One such individual, Tayo Olutunde, a 22-year-old accounting and finance student residing in Leeds, discovered a Child Trust Fund worth over £2,000. Tayo shared his experience of learning about the fund through social media and eventually confirming its existence with his mother’s help.