Martin Lewis provides advice on tracing a Child Trust Fund
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A Child Trust Fund served as a good way to build up savings for a young person, and was commonly seen as an investment in their future. The scheme was first introduced by the Government back in 2005 as a long-term tax-free savings solution. Children born between September 1, 2002 and January 2, 2011 were able to benefit under the Child Trust Fund scheme.
It saw the Government issue parents and guardians with vouchers which they were able to put towards their child’s future.
Many of the children who were eligible for a Child Trust Fund are now teenagers or young adults.
And as a result, individuals are being encouraged to track down old savings accounts they may have forgotten about.
Depending on how much people put away, the discovery of an old account could be potentially lucrative.
Earlier this year, it was estimated that 200,000 accounts currently remain unclaimed.
This could mean there are millions of pounds in dormant Child Trust Funds just waiting to be received.
Recent data from OneFamily, the UK’s biggest Child Trust Fund provider, has shown accounts which matured last year held an average of £2,100.
But with many accounts still not accessed, parents and young people will need to take action to reunite with lost cash.
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Paul Bridgwater, Head of Investments at OneFamily, commented on the matter.
He said: “We’ve been working hard to track our missing account holders down.
“We undertake active and ongoing tracing activity as well as using email and SMS to reconnect where we hold that detail.
“We’re also working with the CTF Register, which is an invaluable tool for young people who are looking for their money.
“Since mid-2019, our population of ‘gone-away’ customers has reduced by around 11 percent.
“However, even when the child trusts funds are unclaimed, the money isn’t lost.
“It’s held until the young person gets in touch with us – so they continue to receive the benefits of their fund and keep their tax-free status.”
For those looking to find their lost Child Trust Fund, there is a way to track this down systematically.
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The Government has established an online Child Trust Fund tracker through its official website.
To start the process, individuals – whether they set up the account or are the beneficiary – will need their Government Gateway ID and password.
Children who are now old enough to redeem their Child Trust Fund will also need to provide their National Insurance number.
While for parents, the child’s Unique Reference number alongside their own National Insurance number will be necessary.
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