HM Revenue and Customs (HMRC) is calling on many people to “unlock” a festive financial boost, with as many as hundreds of thousands of people entitled to a lump sum. HMRC said earlier this year that more than half a million people were owed the cash – worth some £2,212 each on average.
The cash pots date back to a 2005 initiative by a former Labour Government, which made an initial deposit of £250 or £500 for each child based on the family’s financial situation. Parents and guardians could then top up the account whenever possible, with the funds being locked in until the child reached 18.
Designed as long-term, tax-free savings accounts, these Child Trust Fund accounts were set up for children born between September 1, 2002, and January 2, 2011. The savings, held with banks, building societies or other financial institutions, are kept secure until they are either withdrawn or reinvested.
And it’s suspected that huge numbers of these accounts are still waiting to be claimed. In a new post on X on Tuesday, HMRC said: “Unlock a boost this Christmas by cashing in your #ChildTrustFund. If you’ve turned 18 in the past few years, then you could be missing out on a cash boost.”
They offer further assistance through an accompanying link, which leads to an online Gov.uk tool that helps people determine who manages their Child Trust Fund,
Further guidance found on an accompanying link explains that people can use an online Gov.uk tool to find out their Child Trust Fund provider. After using the online tool, HMRC will send you a letter containing the details of the Child Trust Fund provider, usually within three weeks of your initial request.
If you don’t receive a response within six weeks, you should write to HMRC and include your reference number if you have one.