HMRC to ship letters telling 1000’s of individuals to assert £2,200
Hundreds of thousands of people have money waiting to be claimed
The accounts have on average £2,200
Thousands of young people will be contacted by the Government about forgotten savings accounts worth £2,200 on average. The awareness drive relates to child trust funds (CTFs), which are long-term, tax-free savings accounts which were set up for children born between September 1 2002 and January 2 2011.
More than 750,000 accounts are unclaimed, according to the Government. HM Revenue and Customs (HMRC) will be writing to 21-year-olds whose accounts remain unclaimed to make them aware they have a CTF.
The Government said it is undertaking an awareness campaign urging young people to locate their CTFs through the free “find my child trust fund” service on gov.uk. Once the account holder turns 18 it matures, and they can decide whether they want to withdraw the money or reinvest it.
The savings accounts are not held by Government but in banks, building societies or other savings providers. Many children received around £250 each from the government at the time their CTF was started, while those from low-income families or in local authority care may have received an additional £250.
If young people or their parents or guardians already know who their child trust fund provider is, they can contact them directly. Economic Secretary to the Treasury Lucy Rigby convened a roundtable earlier this week with CTF providers to look at how the sector can go further in reconnecting savers with their accounts.
Ms Rigby, said: “Hundreds of thousands of young people in this country don’t know they have a CTF, let alone how to access it. Some will have a couple of thousand pounds sat there that would really help them as they begin adult life. I’m determined that those who have CTFs are made aware they have this money.
“Together, we will ensure funds from these child trust funds can be accessed by young people to help give them the best start to adult life.”
