Your Essential Guide to Claiming Lost Child Trust Funds: Step-by-Step Instructions

Understanding Child Trust Funds (CTFs)

Por: Maria Eduarda em February 10, 2025

What are Child Trust Funds?

Child Trust Funds (CTFs) are government-initiated savings accounts aimed at providing children born between 2002 and 2011 with a financial head start once they reach adulthood.

The UK government introduced CTFs to promote saving habits and to eventually support young adults with a small nest egg as they embark on their independent lives.

Initial Government Contribution

Each CTF account was kickstarted with an initial government contribution of £250.

This initial amount was designed to grow tax-free over the years through compound interest, contributions from family and friends, and other investments.

In some instances, an additional £250 was added by the government when the child turned seven, further boosting the potential savings.

Potential Growth

The beauty of these accounts lies in their potential for growth.

When managed wisely, a CTF could grow substantially due to the power of compound interest and savvy investments.

On average, these accounts can grow to about £2,000 by the time the account holder turns 18.

This money can serve as crucial financial support for a variety of needs such as higher education, buying a car, or starting a small business.

Tax-Free Savings

One of the significant advantages of CTFs is that they offer a tax-free savings opportunity.

This means that all the interest and investment gains accrued in the account over the years are not subject to income tax or capital gains tax.

This feature makes CTFs a particularly appealing saving option as it ensures that every bit of growth directly benefits the account holder.

Providing a Financial Head Start

The fundamental purpose of CTFs is to provide young adults with a financial head start.

By offering them a chunk of money right as they step into adulthood, the government aimed to give these individuals a better footing as they navigate the financial responsibilities and opportunities of adult life.

Understanding Child Trust Funds lays a solid foundation for making the most of this valuable financial opportunity.

The Scale of Unclaimed Funds

Significant Amounts of Money Unclaimed

It might surprise you, but there’s a considerable amount of money unclaimed in Child Trust Funds (CTFs).

Approximately £1.4 billion is sitting across 728,000 unclaimed CTF accounts.

This staggering figure shows just how many young adults are unaware of the funds that were set aside for them by the government, and potentially by family and friends over the years.

The Role of HMRC Allocated Accounts

A substantial portion of these unclaimed funds is housed within what are known as ‘HMRC allocated accounts.’

These accounts were created by the government since no action was taken by parents or guardians to set up a CTF after receiving the initial government voucher.

There are about 449,000 of these accounts, holding an eye-watering £927 million.

The funds in these accounts remain untouched and unclaimed simply because many account holders are unaware of their existence.

Lack of Awareness Among Account Holders

Many young adults are completely unaware that they have a Child Trust Fund in their name.

Latonya Skye-Paterson, for example, found £955 in her account thanks to a suggestion from a college tutor.

Imagine the financial relief and opportunities such a discovery could bring!

Unfortunately, with hundreds of thousands of people in the same boat, it’s clear that awareness needs to be raised significantly.

Raising Awareness and Next Steps

Understanding the scale of unclaimed funds and the reasons behind lost accounts is the first step.

However, there’s more work involved in reclaiming these funds and putting them to good use.

Taking proactive steps can ensure that this hidden financial resource doesn’t remain out of reach.

Next, we will dive into how to check your eligibility to make sure you’re one of those with a claim to this unclaimed treasure.

Checking Your Eligibility

To claim your Child Trust Fund (CTF), the first step is verifying your eligibility.

Here’s how you can confirm whether you’re eligible to access these funds.

Birth Date Requirements

Firstly, you must have been born between September 1, 2002, and January 2, 2011.

This specific birth date range was chosen by the UK government for the CTF initiative, intended to grant a financial head start to children born during this period.

If you fall within this range, you’re already on track.

Initial Government Voucher Receipt

Next, confirm if you received an initial government voucher.

Each eligible child was issued a voucher, typically £250, to kickstart their savings account.

Check with your parents or guardians for any documents related to this government voucher.

If unsure, some banks or financial institutions may also have records of this initial deposit.

UK Residency During the Qualifying Period

Another key eligibility criterion is residency.

You must have been a UK resident during the qualifying period when the government issued these vouchers.

This confirms that you were eligible for the scheme under the rules set by HMRC.

Taking these steps to confirm your eligibility is crucial before you proceed to locate and claim your Child Trust Fund.

Now that you’ve checked your eligibility, you’re ready to move on to the next step.

By ensuring consistent eligibility verification, you can confidently continue the process, knowing you’re entitled to these funds.

Finding Your Lost CTF Account

If you’re one of many who haven’t yet claimed their Child Trust Fund (CTF), there’s good news – finding it is a straightforward process.

Let’s break down the steps.

Using Government Gateway Login

The quickest way to locate your CTF is by using the Government Gateway login.

First, you’ll need your National Insurance number, which you can find on documents like your payslip, P60, or letters regarding your tax, pension, or benefits.

Once you have it:

Log into the Government Gateway.
Navigate to the Child Trust Fund section.
Enter your National Insurance number and any other required details.
Follow the prompts to locate your CTF.

Accessing The Share Foundation’s Tracker Service

Another excellent resource is the tracker service offered by The Share Foundation, a charity dedicated to helping people find unclaimed Child Trust Funds.

Here’s how to use it:

Visit The Share Foundation’s website.
Go to their Child Trust Fund tracking section.
Enter your personal information, including your National Insurance number.
Follow their guidelines to identify the institution managing your CTF.

Required Documentation and Verification Process

To ensure you are the rightful owner of the CTF, you’ll need to complete a verification process.

This typically involves:

✅Providing your National Insurance number.
✅Submitting a form of identification, like a passport or driver’s license.

Collect all these documents and be prepared to respond to any additional verification requests.

Remember, discovering your CTF can feel like uncovering a hidden treasure.

Take the time to gather your documents, verify your identity, and reclaim the funds waiting for you.

Next up is how to claim these funds once you turn 18 – a crucial step in accessing your financial head start.

Claiming Your Funds

When you turn 18, it’s time to access your Child Trust Fund (CTF).

However, the process isn’t automatic, so proactive steps are crucial.

Process for Accessing Funds

To claim your CTF, verify your identity using the following:

✅National Insurance Number: Essential for validating your eligibility and linking to your trust fund account.
✅Government Gateway Login: If you haven’t registered yet, you’ll need your National Insurance number to do so. This login lets you check and manage your CTF online.

Identity Verification Requirements

Ensuring you are the rightful owner is key. You will need:

✅Proof of identity: Valid forms include a passport or driver’s license.
✅Proof of address: Recent utility bills or bank statements usually suffice.

Importance of Proactive Claiming

CTFs do not disburse funds automatically when you turn 18.

Unlike other accounts, you must claim these funds yourself by:

✅Logging into the relevant government services.
✅Verifying your details.
✅Initiating the claiming process.

Many people miss out on their CTFs simply because they are unaware they exist.

Approximately £1.4 billion remains unclaimed because holders haven’t taken the necessary steps to claim their funds.

Actively seeking out and claiming your CTF can provide financial relief and support.

Ensure you follow through to unlock your savings.

And with that, we move on to explore future changes and improvements to the claiming process.

Future Changes and Improvements

Proposed Automatic Payouts at Age 21

One of the most exciting proposals regarding Child Trust Funds (CTFs) is the plan to automatically release unclaimed funds when account holders reach the age of 21.

This initiative seeks to address the staggering amount of money currently unclaimed—around £1.4 billion spread across 728,000 accounts.

The idea here is that if the funds in these accounts are not accessed by the time individuals turn 21, they will be automatically paid out, making it easier for those who might have forgotten or were unaware of their funds.

This is especially significant for HMRC allocated accounts, where no action was taken by parents or guardians.

These accounts hold £927 million spread across 449,000 accounts.

Automatic payouts would not only help to reduce the number of dormant accounts but also ensure that the beneficiaries receive their rightful funds at a critical time in their lives.

Potential Use of National Insurance Numbers for Tracking

To streamline the process of identifying and releasing CTF funds, the use of National Insurance numbers has been proposed.

This unique identifier can link various governmental databases, making it easier to track account holders.

For instance, National Insurance numbers can be cross-referenced with PAYE payslips, student loan information, or benefits details, helping to locate those who may be unaware that they have a CTF in their name.

This method promises to simplify the tracking and releasing process substantially.

With this system in place, it would be less of a burden on the account holder to actively search for their CTF, thereby reducing the risk of accounts going unclaimed.