The UK’s Revenue body, HM Revenue and Customs (HMRC), is urging the Gen-Z age group to check if they have unclaimed funds sitting in child trust funds (CTFs). Around 671,000 young adults aged 18 to 22 are unknowingly holding onto these pots of cash, with the average savings amounting to over £2,000.
CTFs were established for children born between September 1, 2002, and January 2, 2011. At the time they were set up, many children received approximately £250 from the government, with additional sums for those from low-income families or in local authority care. Young individuals gain control of their accounts at 16 and can access the funds when they turn 18.
However, some may have forgotten about their CTFs or are unaware that an account was created on their behalf. The funds are typically held with banks, building societies, or other saving providers and remain in the account until withdrawn or reinvested.
For those who are unsure about their account’s whereabouts, an online tool on the gov.uk website can be used. To access the information, individuals will need their national insurance number and date of birth. The CTF scheme, which closed in January 2011, was succeeded by Junior ISAs.
HMRC’s second permanent secretary, Angela MacDonald, emphasized the importance of reuniting young people with their unclaimed funds, stressing that utilizing third-party agents could result in charges and reduce the sum received.
Young adults are encouraged to check for their child trust funds directly using the government’s website without incurring unnecessary costs. By taking this simple step, many could discover a significant windfall awaiting them.