Tag: Child Trust Funds

Claim your Child Trust Fund this National Apprenticeship Week

  • Young adults encouraged to find their matured Child Trust Fund quickly and for free using the GOV.UK locator tool
  • Child Trust Funds worth on average £2,242 each
  • Those starting an apprenticeship can use the HMRC App for essential information needed by their employer

HM Revenue and Customs (HMRC) is urging young people in Scotland who have yet to claim their Child Trust Fund to do so during National Apprenticeship Week (9-15 February).

While an apprenticeship can provide a good start to life in work, latest figures show 758,000 young people could be missing out on cash as they have yet to claim the savings in their Child Trust Fund account. 

Child Trust Funds are long term, tax-free savings accounts which were set up for children born between 1 September 2002 and 2 January 2011 with an initial government deposit of at least £250. 

Young people can take control of their account at 16, but once they turn 18 years old the account matures and they can decide whether they want to withdraw the money or re-invest it.

With more than 14,500 young people aged 24 and under on Modern Apprenticeships in Scotland, a Child Trust Fund worth on average £2,242 each, will give them a financial head start.

Hope Kerr-Williams, a 22 year-old apprentice from Nottingham, claimed her Child Trust Fund at 18.

Hope found out about her Child Trust Fund account when she was a teenager. Her parents had told her where it was invested and that they had paid an inheritance into it on her behalf. It was worth £5,000 by the time she claimed it and she used it to help pay for her expenses when she started university.

Hope said: “I was counting down the days until I could claim my Child Trust Fund as I was planning my move to Sheffield. I used it to put a deposit down on my flat, pay the first months’ rent and buy essentials for my accommodation, which all adds up when you have to buy everything at once. I also bought a laptop for my course.”

Hope says she doesn’t know how she would have managed costs without it and encouraged her friends to claim theirs.

“Having my Child Trust Fund account saved me from going into an overdraft or borrowing money when I had a lot of expenses at the start of university. It gave me independence and a great start to adult life, which I’m still grateful for.”

Hope graduated last summer and joined HMRC in November. She is one of 870 apprentices currently with HMRC and is doing a Level 4 PR and Communications Apprenticeship. 

“I’m enjoying applying what I’ve learnt to my job. Apprenticeships allow you to work, study and gain experience while earning a qualification that’s directly relevant to your role. I’d recommend an apprenticeship to anyone.”

For young people who know where their Child Trust Fund is held, they can contact the savings provider directly.

For those who don’t know where their Child Trust Fund is, the quickest and easiest way to locate it, is to use the GOV.UK Child Trust Fund locator tool. 

Myrtle Lloyd, HMRC’s Chief Customer Officer said: “Whether young people are on an apprenticeship, starting their first job, or making plans to go to university, a Child Trust Fund can make all the difference. Find yours today by searching ‘find my Child Trust Fund’ on GOV.UK”.

It is quick and easy to search for a Child Trust Fund account online. To make a request, young people just need provide their National Insurance number and Date of Birth.  

For those who don’t have their National Insurance number to hand, young people can download the HMRC app to view it and save it in their digital wallet. 

Nearly 1.7 million young people under the age of 25 have downloaded the HMRC app. While National Insurance number views is one of the most popular functions for young people using the HMRC app, they can also find other essential information at their fingertips – including Pay As You Earn (PAYE) information, their tax code as well as employment history. 

More information about Child Trust Funds can be found on GOV.UK.

Scottish teenagers to get access to pot of money over the next nine years

Thousands of teenagers in Scotland are set to benefit for the first time from money in Child Trust Funds (CTFs) that has been waiting for them since they were young children.

Since 2002, around 6.3 million CTF accounts have been set up across the UK, roughly 4.5 million by parents or guardians and a further 1.8 million set up by HMRC where parents or guardians did not open an account. In Scotland there are approximately 447,000 accounts.

This means some children do not know there are accounts in their name, so are unaware their money is waiting for them.

From 1 September 2020, the oldest children will turn 18 and be able to access their money.

Around 55,000 accounts will mature each month and HMRC has created a simple online tool to help young people find out where their account is held.

If a parent or guardian is unsure of where their child’s CTF account is held they can also use this tool.

For those who do not have the identifying information required to access the tool, HMRC will provide alternative, non-digital routes to finding a CTF provider upon request.

HMRC and The Share Foundation are also working together to help children in need of further support.

HMRC will send details of the CTF provider by post within three weeks of receiving their request.

Economic Secretary to the Treasury, John Glen, said: We want to make sure all young people can access the money which has been set aside for them, to invest in their future and continue a savings habit, as they turn 18.

“If you’re unsure if you have an account or where it may be, it’s easy to track down your provider online.”

UK Government Minister for Scotland, Minister David Duguid, said: “This will be a welcome boost for many Scottish young people, particularly welcome in what has been a difficult year for many.

“I encourage all young people aged between 16 – 18 years in Scotland to check if they have a dormant Child Trust Fund. This money, provided by UK Government, is rightly yours. It only takes a few minutes of your time to check your eligibility online.”

The accounts were set up to encourage positive financial habits and a saving culture among the young account holders. HMRC is working with the Money and Pension Service (MaPS) and the CTF providers to continue to provide financial education to the beneficiaries.

CTFs were originally set up for children born between 1st September 2002 and 2nd January 2011, with a live Child Benefit claim.

Parents and guardians received a voucher to deposit in a Child Trust Fund (CTF) account on behalf of the child. At 16 years, the child can choose to operate their account or have their parent continue to operate it, but they cannot withdraw the funds.

At 18 years of age, the CTF account matures and the child is able to withdraw money from the fund or move it to a different savings account. Over 700,000 accounts will mature each year.

The accounts are not held by HMRC, but by a number of CTF providers who are financial services firms. Anyone can pay into the account, with an annual limit of £9,000 and there’s no tax to pay on the CTF savings interest or profit.