HMRC is advising parents to verify if their child has an overlooked savings account valued at £2,200.
This reminder pertains to Child Trust Funds, which were provided to children born between September 1, 2002, and January 2, 2011. Each child received a voucher worth £250, or £500 for those from lower-income families, to promote savings.
Parents had the option to contribute up to £9,000 annually to the Child Trust Fund. In cases where parents did not initiate the fund, HMRC established one on the child’s behalf, leading to many accounts being misplaced or forgotten.
According to recent HMRC data, the average value of a Child Trust Fund is £2,200, although individual amounts may vary based on the contributions made.
In a post on Twitter, HMRC alerted parents that children who have turned 18 could possess a #ChildTrustFund, averaging £2,200. While new Child Trust Funds cannot be opened, existing accounts can still receive contributions, with access granted once the child reaches 18 years old.
If aware of the Child Trust Fund provider’s name, individuals can directly contact them for further information. In cases of lost accounts, HMRC can assist in locating them by submitting a form on GOV.UK.
Parents or guardians of children under 18, or individuals aged 16 or above seeking their own account, can request HMRC to locate a Child Trust Fund. Necessary information includes the National Insurance number and Government Gateway ID when completing the online form or sending a written request to HMRC.
Recently, an accounting and finance student, Tayo Olutunde, residing in Leeds, discovered a Child Trust Fund worth over £2,000. Tayo shared his surprise at finding out about the fund through social media and eventually confirming its existence with his mother.