There was a staggering revelation made recently regarding the Child Trust Fund (CTF) scheme and the whopping £1.4 billion that remains unclaimed in these accounts. This means statistically those in Porthcawl alone are owed £420,000. Each claim is worth up to £950!
If you were born between 1st September 2002 and 2nd January 2011, you might have a Child Trust Fund waiting for you, containing money the government set aside when you were a baby. Now, those aged roughly between 14 and 22 may have the chance to access more than £1 billion that has been saved up by the state.
The scheme was introduced by the UK government in 2002 to provide every child born in the country with a financial head start. Initially, the government made an automatic payment into each child’s account — typically £250 or £500 for low-income families — with the idea that parents, and relatives could add to it over the years.
Parents were sent instructions on how to set up the account, if this wasn’t done by the child’s first birthday, HMRC would automatically create the account for them. Once set up, the funds in the CTF couldn’t be accessed until the child turned 18, when it would provide a tax free lump sum.
The Share Foundation, a charity set up to help children find and access their Child Trust Funds have been instrumental in assisting young people track down their accounts. The charity works alongside HMRC to help those who may have lost track of their accounts, especially if they have changed addresses or lost the original details. Through their support, many young people are successfully retrieving the savings that have been set aside for them.
For those who think they may have an account, it’s worth checking with the government’s online services, contacting HMRC, or reaching out to The Share Foundation for guidance. This will be an unexpected financial boost for many, allowing them to make the most of the money set aside and it’s free!
Mia Eastment
Junior Paraplanner
Abacus Assurance,