Martin Lewis, the renowned financial journalist, has issued a stark warning to 21-year-olds across the United Kingdom, urging them to check if they are entitled to money from unclaimed Child Trust Funds (CTFs). These tax-free savings accounts were established for children born between September 2002 and January 2011, with the government making initial contributions. The accounts become accessible once the child reaches their 18th birthday, yet a staggering number remain untouched.
Over £1.6 Billion in Unclaimed Savings
According to recent data, more than 750,000 CTFs have not been claimed, collectively holding at least £1.6 billion. This equates to an average of approximately £2,200 per fund. Lewis emphasised that many young adults are unaware of these funds or have misplaced the necessary documentation.
HMRC's Outreach Initiative
Her Majesty's Revenue and Customs (HMRC) is currently undertaking a proactive campaign to contact 21-year-olds who may have unclaimed CTFs. Letters are being dispatched to inform individuals about their accounts and provide clear instructions on how to access their savings. Lewis praised this effort but cautioned recipients to remain vigilant against potential scams.
He stressed that HMRC will only communicate about CTFs through official postal letters. Under no circumstances will they contact individuals via email, telephone calls, or text messages. Any such unsolicited communication should be treated as fraudulent.
How to Claim Your Child Trust Fund
If you believe you may have a CTF, the first step is to locate the account details. This can be done by checking with the original provider or using HMRC's online tool. Once the provider is identified, you can request a transfer or closure of the account to access the funds. Lewis advises acting promptly to avoid missing out on this financial opportunity.
In summary, Martin Lewis's warning serves as a crucial reminder for 21-year-olds to investigate potential unclaimed savings. With over £1.6 billion at stake, checking for a Child Trust Fund could result in a significant financial boost.
