It has been reported that 42% of eligible 18-20 year olds have not claimed the savings in their matured accounts. That’s £1.7bn in unclaimed funds
Introduced by former chancellor Gordon Brown in September 2002, CTFs provided tax-free savings accounts for all eligible children in the UK who were born between 1 September 2002 and 2 January 2011 – an average account is worth £1,900.
The aim behind CTFs was for young people to come into a pot of money on reaching 18, with the promotion of financial literacy and good saving habits. But many young people are unaware that they even have money waiting to be claimed.
HMRC has increased its communications since 2018 to help advertise the existence of the accounts. In 2020, the tax authority ran a social media campaign that led to peaks in enquiries.
Have any of your children not claimed their Child Trust Fund? Time to check.