{"id":1588,"date":"2024-09-27T08:20:32","date_gmt":"2024-09-27T07:20:32","guid":{"rendered":"https:\/\/www.redstarwealth.co.uk\/blog\/?p=1588"},"modified":"2024-09-26T16:56:07","modified_gmt":"2024-09-26T15:56:07","slug":"average-unclaimed-child-trust-fund-is-2212","status":"publish","type":"post","link":"https:\/\/www.redstarwealth.co.uk\/blog\/average-unclaimed-child-trust-fund-is-2212\/","title":{"rendered":"Average Unclaimed Child Trust Fund is \u00a32,212"},"content":{"rendered":"

If you were born between September 2002 and January 2011, you might have money in a Child Trust Fund you don\u2019t know about<\/p>\n

What are They?<\/h2>\n

Child Trust Funds are long-term tax-free savings accounts which some people set up for children born between 1st<\/sup> September 2002 and 2nd<\/sup> January 2011.<\/p>\n

Any young people with these accounts are able to take control of it at age 16, and withdraw funds from age 18 over, at which point the account has matured. This scheme closed in 2011, but a similar option is a Junior ISA.<\/p>\n

These savings accounts are held by banks, building societies and other providers, and any money deposited into them remains there until it is withdrawn or reinvested.<\/p>\n

What Did the Government Pay In?<\/h2>\n

With these savings accounts, the government deposited money in free of charge. Those born on or after 1st<\/sup>September 2002 received \u00a3250, with those in low-income households or in the care of the local authority receiving an extra \u00a3250.<\/p>\n

Any children becoming eligible after 3rd<\/sup> August 2010 received \u00a350 or \u00a3100 if they were on a low-income household or in the care of a local authority.<\/p>\n

Between 1st<\/sup> September 2009 and 31st<\/sup> July 2010, children who turned seven also received an extra \u00a3250, or if they were looked after or in households with qualifying benefits, \u00a3500.<\/p>\n

There were also some additional payments made to children who were receiving disability living allowance between 2009-2011 and to children in the care of a local authority from 2008-2011.<\/p>\n

Unclaimed Child Trust Funds<\/h2>\n

Young people are currently being urged to claim their Child Trust Funds, as HMRC has revealed that over 670,000 18-22 year olds have yet to claim theirs, with an average unclaimed saving pot of \u00a32,212.<\/p>\n

Over the course of the scheme, 6.3 million accounts were opened, with the Government contributing \u00a32 billion into these. Beneficiaries of these accounts started to turn 18 in September 2020 onwards, and many of them are either unaware they have a Child Trust Fund or have been unable to access it.<\/p>\n

According to a House of Commons research briefing<\/a> on Child Trust Funds earlier this year, this is in part due to:<\/p>\n