HMRC is advising parents to verify if their child possesses an overlooked savings account valued at £2,200.
This advisory pertains to Child Trust Funds, which were allocated 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, with the intention of promoting family savings habits.
Parents had the option to contribute up to £9,000 annually to the Child Trust Fund. If a parent failed to set up the account, HMRC would have initiated one on behalf of the child, leading to many of these accounts being misplaced or forgotten.
Recent data from HMRC reveals that the average value of a Child Trust Fund is £2,200, although individual amounts can vary based on the savings deposited.
In a message on Twitter, HMRC stated: “Attention parents! If your child has recently turned 18, they may have a #ChildTrustFund, worth an average of £2,200.”
While it is not possible to open a new Child Trust Fund, contributions can continue to an existing account. Access to the Child Trust Fund is only permitted once the child reaches 18 years of age.
To obtain information about a Child Trust Fund, individuals can directly contact the provider if known. If the account details are lost, HMRC can assist in locating it by submitting a form on GOV.UK.
Parents or guardians of children under 18, or individuals aged 16 and above seeking their account, can request HMRC to locate a Child Trust Fund. The online form requires the National Insurance number and Government Gateway ID. Alternatively, details can be requested via mail to: Charities, Savings and International 1, HMRC, BX9 1AU, including comprehensive information like full name, date of birth, address of the account holder, and National Insurance number.
A story highlighted by the Mirror featured accounting and finance student Tayo Olutunde from Leeds, who discovered a Child Trust Fund exceeding £2,000. Tayo, aged 22, shared his experience, stating: “I found out about Child Trust Funds on TikTok… this was about two years ago. I was quite interested and I looked into it, but I thought, let’s just leave it, as it sounded too good to be true. Fast forward to now, and I spoke to my mum and she said, yeah, I do have an account.”
