Young people urged to claim their savings

Many young adults in Denbighshire could have an average of £2,000 waiting for them in their unclaimed Child Trust Fund account.

Child Trust Funds are long-term, tax-free savings accounts which were set up for every child born between 1 September 2002 and 2 January 2011, with the government contributing an initial deposit of at least £250. Funds can be withdrawn once the account matures when the child turns 18.

According to government data, nearly a million young people in the UK have yet to claim their Child Trust Funds. More than 800,000 accounts belong to people from low-income backgrounds - prompting concern that those who need the money the most are not accessing it.

Every 16-year-old is sent information about finding their Child Trust Fund from HMRC with their National Insurance letter. Anyone unsure about their situation should check with their bank or building society. Alternatively, young adults and parents can also search on www.gov.uk/child-trust-funds to find out where their Child Trust Fund account is held.

There are currently 5.3 million open Child Trust Fund accounts. Young people aged 16 or over can take control of their own Child Trust Fund, although the funds can only be withdrawn once they turn 18. Families can continue to pay up to £9,000 a year tax-free into a Child Trust Fund until the account matures. The money stays in the account until the child withdraws or reinvests it into another account.

If a parent or guardian was not able to set up an account for their child, the government opened a savings account on the child’s behalf. The Child Trust Fund scheme closed in January 2011 and was replaced with Junior Individual Savings Accounts (ISA).

For more information on cost of living support in Denbighshire, please visit www.denbighshire.gov.uk/costofliving or contact Citizens Advice Denbighshire www.cadenbighshire.co.uk