Child trust funds were established for every child born between September 1, 2002 and January 2, 2011, with each child receiving £250 from the government to launch the account. An additional £250 was added to the child trust fund for children from low-income families or in the care of the local authority, according to major media reports. Parents could add up to £9,000 a year to the child trust fund, according to major media reports.
If an account was not opened by a parent within 12 months of a child being born, HMRC opened one on their behalf, according to major media reports. The account holder can withdraw the money once they turn 18, though they can assume control of the account from age 16, according to major media reports. If the funds are not withdrawn, the money remains dormant until they are, according to major media reports.
No one had said anything and my mum passed away when I was 11, so I just didn't have a clue.
The oldest individuals eligible for child trust funds are now 23, according to major media reports. The youngest child trust fund holders are still three years away from being able to access their savings, according to major media reports. Young people in northern England are disproportionately affected by unclaimed savings, according to major media reports.
The Share Foundation has uncovered a significant geographical disparity in forgotten child trust fund accounts, according to major media reports. There are growing calls for funds to be automatically released to account holders as soon as they turn 21, according to major media reports. Experts believe automatic release at age 21 would immediately put up to £286 million into the pockets of young people who need it most, according to major media reports.
My sister is 21, she'd been looking for three years and couldn't find anything, so we just assumed we didn't have them. I was really upset because I saw all my friends had one.
HMRC offers a 'Find your Child Trust Fund' tool on its website to help establish whether someone has one of these accounts, according to major media reports. The money in child trust funds is not subject to income tax, according to major media reports. Parents who reached their maximum savings threshold each year could have accumulated over £160,000 by the time their child reached 18, according to major media reports.
The average value of a child trust fund is £2,200 today, according to major media reports. According to The Guardian - Business, Elle Middlemas described that she and her sister were unaware of their funds for years, with her mother having passed away when she was young, and they only recently discovered the money, which they hope will help them get on in life. According to The Guardian - Business, Elle Middlemas described that everyone who has one should be eligible to get it without having to go through the process she has.
I had £700 sitting in my bank and I was like, what is going on? How on earth have I got that?
It remains unclear what specific actions HMRC is taking beyond the online tool to notify eligible individuals about their unclaimed child trust funds. The exact breakdown of unclaimed funds by region, beyond the general note that northern England is disproportionately affected, has not been disclosed. Whether there are any legislative proposals or government plans to implement automatic release of funds at age 21 is also unknown.
My sister had one too, and for years she had no idea how to access it at all.
We're just so grateful. It will help us to get on in life.
Everyone who has one should be eligible to get it without having to go through the process I have.