Thousands of young individuals stand to be reunited with forgotten savings averaging £2,200 each as the Government initiates efforts to locate unclaimed Child Trust Funds. These funds, totaling around 6.3 million accounts, were established by the Government for children born between September 1, 2002, and January 2, 2011. The aim was to promote savings, with an initial deposit of £250 or £500 for children from low-income families, and the option for families to contribute up to £9,000 annually.
However, a significant number of these accounts have been misplaced or overlooked over time, leading to an estimated 750,000 young individuals having unclaimed funds. To facilitate the return of these savings to their rightful owners, a new task force has been launched by the Government to encourage more individuals to access their accounts.
These savings accounts are not managed by the Government but are held by various financial institutions. The task force includes organizations such as One Family, Coutts, Nationwide, HSBC UK, and others. Rachel Blake, the Economic Secretary to the Treasury, emphasized the importance of raising awareness about these unclaimed funds and simplifying the process for individuals to locate and claim their savings.
HMRC’s Chief Executive, JP Marks, highlighted that there are substantial funds, averaging £2,200, waiting to be claimed by individuals with Child Trust Fund accounts. HMRC has been proactively reaching out to individuals through letters to remind them about their funds. In case of any suspicious communication claiming to be from HMRC, individuals are advised to be cautious, as HMRC does not request financial information via text or email.
Individuals are encouraged not to wait for notifications and can directly contact their Child Trust Fund provider if known. Alternatively, they can utilize the ‘Find my Child Trust Fund’ tool on GOV.UK to locate their funds. It is essential to have your National Insurance number for this process.