HMRC to contact 750k young Brits over unclaimed savings worth thousands

Thousands of young people across the UK are set to be contacted by the government regarding forgotten savings accounts, each worth an average of £2,200.

These accounts are Child Trust Funds (CTFs), long-term, tax-free savings vehicles established for children born between 1 September 2002 and 2 January 2011.

More than 750,000 of these accounts currently remain unclaimed, according to official government figures.

HM Revenue and Customs (HMRC) will initiate contact with 21-year-olds whose CTFs are still unclaimed, informing them of their entitlement.

This forms part of a wider government awareness campaign, urging young individuals to locate their funds via the free "find my child trust fund" service on gov.uk.

Upon reaching 18, the account matures, allowing the holder to either withdraw the accumulated money or choose to reinvest it.

Many children received around £250 each from the government at the time their child trust fund was started (PA)

It is important to note that these savings are not held by the government directly, but rather by banks, building societies, or other designated savings providers.

Many children received around £250 each from the government at the time their CTF was started, while those from low-income families or in local authority care may have received an additional £250.

If young people or their parents or guardians already know who their child trust fund provider is, they can contact them directly.

Economic Secretary to the Treasury Lucy Rigby convened a roundtable earlier this week with CTF providers to look at how the sector can go further in reconnecting savers with their accounts.

New findings from HMRC reveal that 758,000 people have yet to claim the savings in their child trust fund account, missing out on a massive cash boost (PA Wire)

Ms Rigby, said: “Hundreds of thousands of young people in this country don’t know they have a CTF, let alone how to access it. Some will have a couple of thousand pounds sat there that would really help them as they begin adult life.

“I’m determined that those who have CTFs are made aware they have this money.

“Together, we will ensure funds from these child trust funds can be accessed by young people to help give them the best start to adult life.”

Child trust funds have now been replaced with junior individual savings accounts (ISAs) which are long-term, tax-free savings accounts for children. These accounts work similarly, except the government does not give any money when they are set up.