Thousands of teenagers missing out on Child Trust Fund cash

Teenagers are being urged by HMRC to check if they have a pot of money waiting for them in a Child Trust Fund.

HM Revenue and Customs (HMRC) is urging young people to check if they have a hidden pot of gold in the shape of a Child Trust Fund (CTF).

It is now one year since the first account holders started turning 18 and around 55,000 CTFs mature every month. This means their owners can withdraw funds or transfer savings into an adult ISA. Hundreds of thousands of accounts have been claimed so far, but many have not.

CTFs were set up for all children born between 1 September 2002 and 2 January 2011 with a live Child Benefit claim. Parents or guardians set up these accounts with Child Trust Fund Providers – usually banks, building societies or investment managers – using vouchers provided by the government. If an account was not opened by the child’s parent, HMRC set one up on the child’s behalf.

Between 2002 and early 2011, about 6 million CTFs were opened by parents or guardians, with a further million set up by HMRC.

Economic Secretary to the Treasury, John Glen, said, “It’s fantastic that so many young people have been able to access the money saved for them in Child Trust Funds but we want to make sure that nobody misses out on the chance to invest in their future.

“If you’re unsure if you have an account or where it may be, it is easy to get help from HMRC to track down your provider online.”

Some young people may not know they have a CTF or some parents or guardians may have forgotten who they set the account up with. To help them find their accounts, HMRC created a simple online tool.

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