HM Revenue and Customs (HMRC) is urging young people who have yet to claim their Child Trust Fund to do so this week, which is National Apprenticeship Week (9-15 February) — and financial experts have said “it’s easy”.
While an apprenticeship can provide a good start to life in work, latest figures from HMRC show 758,000 young people could be missing out on cash as they have yet to claim the savings in their Child Trust Fund account.
Child Trust Funds are long term, tax-free savings accounts which were set up for children born between 1 September 2002 and 2 January 2011 with an initial government deposit of at least £250.
Young people can take control of their account at 16, but once they turn 18 years old the account matures and they can decide whether they want to withdraw the money or re-invest it.
Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “Whether young people are on an apprenticeship, starting their first job, or making plans to go to university, a Child Trust Fund can make all the difference. Find yours today by searching ‘find my Child Trust Fund’ on GOV.UK.”
Takes just 5 minutes
Antonia Medlicott, Founder & MD at London-based Investing Insiders, urged young people and their families to check what’s owed, and said it can be “surprisingly easy” to access the funds.
She said: “My message is: If you haven’t yet received a Child Trust Fund payment, this could literally be money with your name on it, so it’s well worth taking 5 minutes to check.
“The best news is, getting hold of the money is surprisingly easy – and you should never need to pay anyone to help you do so.
“Go to the official site or, alternatively, use a finding service that helps people track down lost trust fund and pension money.
“It’s completely free and you don’t need to have any original paperwork to be paired with the money you’re entitled to.”
“I can afford that”
Kate Underwood, Founder at Southampton-based Kate Underwood HR and Training, urged business owners to alert their staff to the message from HMRC.
She said: “That ‘lost’ £2,242 could be the difference between your young employee thriving, or cracking under the cost of living. Employers, share this with your teams, especially parents.
“HMRC says 758,000 young people still haven’t claimed their Child Trust Fund, worth £2,242 on average. That’s not a treat. That’s a rent deposit, travel-to-work, tools-for-an apprenticeship, or “I can actually afford that course” fund.
“Loads of young adults are living at home longer because starting life is eye-wateringly expensive. Parents are subsidising it all.
“If a Child Trust Fund is sitting there unclaimed, it can take real pressure off the whole household and help that young person move into education, training or work without leaning on overdrafts and buy-now-pay-later.
“If their child was born between 1 Sept 2002 and 2 Jan 2011, it’s worth checking. At 16 they can take control, and at 18 it matures and they choose what happens next.”
Photo by Fabian Blank on Unsplash
