Martin Lewis has brought attention to a significant opportunity for individuals aged 22 and under, revealing that they may have an unclaimed Child Trust Fund (CTF) in their name. CTFs were established for those born between September 1, 2002 and January 2, 2011, providing each eligible child with a £250 voucher (£500 for lower-income families) to kickstart their savings journey. The scheme allowed for up to £9,000 to be saved each year in these accounts.
However, if a CTF was not opened by a parent or guardian, HMRC automatically created one, resulting in many forgotten accounts that could hold a substantial sum of money unbeknownst to many. These funds become accessible when the individual reaches 18 years old. Martin Lewis has offered guidance on how to reclaim these funds at no cost, emphasising that individuals should not pay any fees to access their own money.
Recent HMRC data indicates that over 670,000 individuals aged between 18 and 22 have not yet claimed their CTF money, with the average value of these savings pots amounting to £2,212. While new CTF accounts cannot be opened since the scheme ended in 2011, contributions to existing accounts are still possible. Those aware of their CTF provider can directly contact them for more information. If account details have been misplaced, HMRC can assist in locating the account by completing a form on GOV.UK.
To utilise this service, individuals will need their National Insurance number and a free Government Gateway account for registration. After submitting the necessary information, HMRC should disclose the CTF provider’s name within three weeks. Alternatively, individuals can request this information via post by writing to Charities, Savings and International 1, HMRC, BX9 1AU, providing as much detail as possible for accurate identification.
It is essential for young people to be aware of the potential funds in their name and take the necessary steps to ensure they can access and utilise this money effectively.