Young people urged to claim their savings

Many young adults in Denbighshire could have an average of £2,200 waiting for them in their unclaimed Child Trust Fund account.

Child Trust Funds were introduced by the UK Government in 2005. Accounts were opened for almost 6 million children born in the UK between 1st September 2002 and 2nd January 2011.

Nearly half of Child Trust Funds in Wales remain unclaimed. According to the Share Foundation, around 1240 accounts are still unclaimed in Denbighshire.

Young people aged 16 or over can take control of their own Child Trust Fund, although the funds can only be withdrawn once they turn 18.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 could not set up an account for their child, the government opened a savings account on the child’s behalf.

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.

Councillor Delyth Jones, Lead Member for Finance, Performance and Strategic Assets said:

“I strongly encourage all eligible young people to check their accounts and claim what is rightfully theirs. The investment could be placed into an adult ISA or put towards their education, housing or driving lessons.

I would urge young people to use the online tool to track it down or, for parents of teenagers, to speak to them to ensure they’re aware of their Child Trust Fund. It could make a real difference to their future particularly at a time when finances are tight.”

The Child Trust Fund scheme closed in January 2011 and was replaced with Junior Individual Savings Accounts (ISA).

For more information on Child Trust Funds, visit www.gov.uk/child-trust-funds. Alternatively, visit https://www.meiccymru.org/do-you-have-money-hiding-in-a-child-trust-fund/, text 07943 114449 or call 080880 23456.