There are thousands of teenagers in the UK who could be owed an average of £2,100, according to HM Revenue and Customs. The government department is reminding people to collect their Child Trust Funds savings.
Child Trust Funds are long-term savings accounts that were opened for every child born between September 1 2002 and January 2 2011. Each account was provided with an initial deposit of £250 or £500 by the government, depending on household income, to encourage future saving.
An estimated 6.3 million Child Trust Fund accounts were set up throughout the duration of the scheme, containing about £9 billion. If a parent or guardian didn’t set up an account for their child, HMRC opened a savings account on the child’s behalf.
The savings accounts mature when the child turns 18 years old, at which point they can withdraw their savings. Teens aged 16 or over can take control of their own Child Trust Fund.
Until the child withdraws or transfers the money, it stays in an account that no-one else has access to. If teenagers or their parents and guardians already know who their Child Trust Fund provider is, they can contact them directly. This could be a bank, building society or other savings provider.
Many eligible teenagers who have yet to claim their savings might be at the stage where they are starting university, apprenticeships, or their first job. The lump-sum amount could offer a much needed financial boost.
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said: “Teenagers could have a pot of money waiting for them worth thousands of pounds and not even realise it. “We want to help you access your savings and the money you’re entitled to.” For more information, visit Gov.uk .
