In 2002, the UK government introduced Child Trust Funds and invested £2bn for children born between 2005 and 2011; £250 per child plus a further £250 for children from low-income families and those in local authority care.
But, a YouGov survey in 2019 showed that one in six parents were unaware of the scheme! In fact, 28% of accounts were set up by HMRC for parents who didn’t sign up in time.
The total value in April 2021 of all the trusts was £10,500,000,000 (£10.5bn), averaging £1,911 per trust but it’s not clear how many young adults are either unaware of, or can’t locate, their trust
According to the National Audit Office, HMRC’s latest figures show that almost £400mn hasn’t been claimed yet!
This could be a massive financial boost to a young person, especially those from low-income backgrounds
Funds can be accessed after the 18th birthday, but, 1 in 4 child trust funds have remained untouched for a year after the account holder turned 18.
Meanwhile, providers, including banks and building societies, could be earning up to £100mn annually from charges on the accounts!
To be fair, HMRC regularly reminds people of child trust funds and how they can check if they have an unclaimed account and notifies 15 year olds at the same time as sending their NI Number.
But just in case you are the Parent, grandparent or one of the young adults who haven’t claimed, here’s the link to locate your pot of cash.