Individuals born before 2011 are being encouraged by HM Revenue and Customs (HMRC) to check their eligibility for a potential financial windfall. The tax authority reports that hundreds of thousands of individuals are entitled to claim a lump sum worth approximately £2,212. Earlier this year, it was revealed that over half a million people had not yet claimed their rightful funds.
The Child Trust Fund scheme was established in 2005 under a previous Labour government. The initiative allowed the government to make an initial deposit of either £250 or £500 per child, depending on the family’s financial circumstances. Parents and caregivers could contribute to the account at their discretion, with the funds remaining inaccessible until the child turned 18. These tax-free savings accounts were designed for every child born between September 1, 2002, and January 2, 2011, according to reports from Chronicle Live.
HMRC indicates that many of these accounts are still awaiting collection. The funds are held with banks, building societies, or other financial institutions, remaining available until they are withdrawn or reinvested. Individuals seeking to trace their Child Trust Fund provider can utilize an online service available on GOV.UK.
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 contact HMRC directly. After submitting an online inquiry, it typically takes about three weeks for HMRC to respond with a letter detailing the provider of your Child Trust Fund. If no response is received within six weeks, it is advisable to follow up with HMRC, including your reference number if available.
With a significant amount of money remaining unclaimed, this initiative presents a valuable opportunity for individuals and families to secure financial resources that are rightfully theirs.
