The average eligible person has a cash pot worth £2,212 waiting to be claimed
HMRC has revealed that people born between certain years could be entitled to over £2,000. The average eligible person could have a cash pot worth £2,212 waiting to be claimed. Hundreds of thousands of UK households are being encouraged to claim cash pots averaging £2,212 each.
This follows an announcement earlier this year by HMRC and the Labour Party government that more than 670,000 people aged 18 to 22 should “cash in their stash”. Child Trust Funds are long-term, tax-free savings accounts set up for every child born between 1 September 2002 and 2 January 2011. The Government deposited £250 into these accounts for each qualifying child, with the funds only becoming accessible once the child turned 18.
These savings are held with banks, building societies or other financial providers, and the money remains in the account until it’s withdrawn or reinvested. It’s estimated that hundreds of thousands of these accounts have yet to be claimed. Young people or their parents or guardians who know their Child Trust Fund provider can contact them directly, reports Birmingham Live.
Those who don’t know can use an online tool on GOV.UK to identify their Child Trust Fund provider. Angela MacDonald, HMRC’s second permanent secretary and deputy chief executive, said: “Thousands of Child Trust Fund accounts are sitting unclaimed. We want to reunite young people with their money and we’re making the process as simple as possible.
“You don’t need to pay anyone to find your Child Trust Fund for you, locate yours today by searching ‘find your Child Trust Fund’ on GOV.UK.”
Some third-party firms are providing services to help people track down their Child Trust Funds, frequently charging fees – for example, one agent demands up to £350 or 25 per cent of the savings account value. But opting for an agent could substantially diminish the funds you collect, probably take longer, and customers must still supply the same information they would if carrying out the search themselves.