Individuals born before 2011 are being urged to check their eligibility for a potential cash payout from HM Revenue and Customs (HMRC), with claims amounting to approximately £2,212 still available. This initiative comes as the tax authority revealed that over 500,000 people have yet to claim their rightful funds from the Child Trust Fund scheme, which was introduced in 2005 by a previous Labour government.
The Child Trust Funds were designed as long-term savings accounts for every child born between September 1, 2002 and January 2, 2011. Initially, the government deposited £250 or £500 into these accounts, depending on the family’s financial situation. Parents and carers had the option to contribute additional funds at their discretion, but the money remained inaccessible until the child turned 18.
These accounts are held by various banks, building societies, or other financial institutions, and many remain unclaimed. With the HMRC encouraging individuals to “unlock” their potential windfall, the online GOV.UK service offers a straightforward way to trace Child Trust Fund providers.
Steps to Claim Your Child Trust Fund
If you are aged 16 or older and wish to locate your own trust fund, or if you are a parent or caregiver of a child under 18, you can reach out to HMRC directly. Upon completing your online inquiry, HMRC typically sends a letter with the details of your Child Trust Fund provider within three weeks.
If a response is not received within six weeks, it is recommended to write to HMRC, including any reference number you may have. This proactive approach can help ensure that individuals do not miss out on their financial entitlement.
As the deadline for claiming these funds approaches, it is crucial for eligible individuals to act promptly. With a significant number of accounts waiting to be accessed, this initiative presents an important opportunity for those who may have overlooked their savings.
