Thousands of Families Overlook £10,000 Unclaimed Free Cash from HMRC
Recent data reveals that thousands of families in the UK may be missing out on unclaimed funds totaling over £10,000 from HMRC. Specifically, around 758,000 young individuals have money stored in Child Trust Funds (CTFs) that has yet to be accessed.
Understanding Unclaimed Child Trust Funds
As of the latest figures, 27,000 unclaimed CTF accounts hold more than £10,000 each. Additionally, there are:
- 280,000 accounts with balances exceeding £1,000
- 57,000 accounts containing more than £5,000
Charlene Young, a senior pensions and savings expert at AJ Bell, highlights that many families may simply be unaware of these accounts. Parents and children might not know where the funds are held or how to retrieve them.
Government Initiative and Awareness
The government established these long-term, tax-free savings accounts for children born between September 1, 2002, and January 2, 2011. Initially, these accounts received a government deposit of at least £250.
Angela MacDonald, second permanent secretary and deputy chief executive at HMRC, pointed out that young adults aged 18 to 23 might be unaware of their potential savings. She encourages this age group to utilize the GOV.UK locator tool to locate their accounts.
How to Find Your Child Trust Fund
Retrieving your CTF account is a straightforward process. Here’s how to do it:
- Visit the GOV.UK website and search for “find my Child Trust Fund.”
- The request process takes about five minutes to complete.
- You will need the young person’s National Insurance number and date of birth.
Most users can expect to hear back within three weeks after submission. At 16, young individuals can start managing their accounts, and once they turn 18, they can withdraw funds or reinvest them as they see fit.
With significant sums potentially lying unclaimed, families are urged to check for any lost funds. Accessing these accounts can make a substantial difference in financial stability for many young adults.
