People Aged 18 to 35 Encouraged to Claim Free £2000 Bonus
Young adults in the UK, particularly those aged 18 to 23, have a significant financial opportunity ahead of them. Recent data reveals that around 758,000 individuals within this age group have yet to claim their Child Trust Fund (CTF) savings, each averaging approximately £2,242. This tax-free account is designed for children born between September 1, 2002, and January 2, 2011, with an initial government deposit of at least £250.
Understanding Child Trust Funds
Child Trust Funds are long-term savings accounts that aim to foster financial literacy among young people. Account holders can manage their CTF at the age of 16. Once they turn 18, these accounts mature, allowing individuals to either withdraw their funds or reinvest them.
How to Claim Your Child Trust Fund
Angela MacDonald, HMRC’s second permanent secretary, highlighted the importance of this initiative, stating, “If you’re between 18 and 23, you could be sat on a savings payout and not even realise it.” Young adults can easily locate their accounts by searching for “find my Child Trust Fund” on GOV.UK.
- For those aware of their CTF provider, direct contact is recommended.
- If the provider is unknown, the GOV.UK locator tool is an efficient resource for finding it.
Recent Trends and Statistics
During the past year, over 563,000 young people utilized the online tool to locate their Child Trust Fund. The month of September 2024 saw peak activity with more than 71,000 searches conducted. Locating an account via this tool is straightforward, generally taking about five minutes to submit. Most people receive a response within three weeks.
To use the locator, individuals need the young person’s National Insurance number and date of birth. If the National Insurance number is not readily available, it can be easily downloaded from the HMRC app and stored for future use.
The Financial Impact
Shelley Doorey-Williams, CEO of the London Foundation for Banking & Finance, expressed support for the HMRC’s initiative. As part of the Youth Financial Capability Group, she noted the importance of young adults reclaiming their Child Trust Fund savings. With an average of £2,242 in unclaimed accounts, these funds could significantly assist young people as they start their financial journey.
It is crucial to realize that these savings accounts are not controlled by the government but are instead held by various banks, building societies, or other financial institutions. For comprehensive details about Child Trust Funds, individuals are encouraged to visit GOV.UK.
