HM Revenue and Customs (HMRC) is encouraging UK households, particularly young adults aged 18 to 23, to claim their matured Child Trust Funds (CTFs) worth an average of £2,242 each before the festive season. Announced via social media platform X, HMRC reminds those born between 1 September 2002 and 2 January 2011 that they may have a Child Trust Fund waiting to be claimed.
Child Trust Funds are long-term, tax-free savings accounts initially established by the government for children born in that period. Each account began with a government deposit of at least £250. Account holders gain control at age 16, but the fund matures when they turn 18, at which point they can decide either to withdraw the money or reinvest it.
According to recent statistics, about 758,000 young adults have yet to claim these matured CTF accounts. Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, highlighted the importance of taking action: “If you’re between 18 and 23, you could be sitting on a savings payout and not even realise it. Just search ‘find my Child Trust Fund’ on GOV.UK to find your savings account today.”
READ MORE: Wetherspoon Confirms Birmingham and West Midlands Pubs Open on Christmas Day – Full List
READ MORE: UK to Experience Two Separate Snow Bombs with Temperatures Dropping to -3C
Shelley Doorey-Williams, CEO of the London Foundation for Banking & Finance, supported this initiative, emphasizing the positive impact for young people starting their financial journeys. She said, “It’s encouraging to see the Government making efforts to reunite people with money they may not even realise was theirs. With an estimated average of £2,242 waiting in unclaimed accounts, this is real money at a crucial time.”
It is important to note that these savings accounts are not held by the government directly but are managed by banks, building societies, or other saving providers. Young people should take the opportunity to locate and claim their funds before the end of the year.