21 Sep 2023
HMRC has urged almost 430,000 young people with an unclaimed Child Trust Fund (CTF) to claim their cash.
CTFs are tax-free savings accounts that were created for every child born between 1 September 2002 and 2 January 2011. The government contributed an initial deposit of at least £250. Family and friends can contribute up to a maximum of £9,000 in any one year into an existing CTF account.
CTF accounts began to mature in September 2020 when the first children turned 18. The Public Accounts Committee (PAC) recently stated that CTFs are not reaching many of the people they were designed to help, with some young people unaware that they have money waiting to be claimed.
HMRC revealed that there are currently 5.3 million open CTF accounts, and that more than 500,000 matured CTF accounts have been claimed or transferred into an ISA since September 2020.
Commenting on the issue, Angela MacDonald, Deputy Chief Executive at HMRC, said: 'Many 18–21-year-olds are starting out in first jobs or apprenticeships, starting university or moving into their first home and their CTF is a pot of money with their name on.
'I would encourage young people to use the online tool to track it down or, for parents of teenagers, to speak to them to ensure they're aware of their CTF. It could make a real difference to their future plans.'