Many Child Trust Funds are unclaimed, with calls for automatic payouts to help recipients access their money easily
London: It turns out there’s a whopping £1.4 billion sitting in unclaimed Child Trust Funds. Can you believe it? A senior MP is now pushing for automatic payouts to help people get their hands on this cash.
Sir Geoffrey Clifton-Brown, the MP for North Cotswold, shared his thoughts on Radio 4’s Money Box. He compared these unclaimed funds to a treasure trove just waiting to be discovered. It’s like expecting folks to dig through endless sand to find their money!
He’s not just talking; he plans to ask the Treasury and HMRC to step up their game when they next appear before the Public Accounts Committee. It’s about time someone took action!
The Share Foundation, a charity that helps people find lost funds, is also on board. They want automatic payouts for accounts that haven’t been touched by the time the account holders turn 21. Sounds fair, right?
They’re suggesting using National Insurance numbers to track down these account holders through things like student loans or benefits. It’s a smart move to make sure no one misses out.
If you’re wondering how to find your Child Trust Fund, you can do it for free using the Government Gateway service. The Share Foundation also offers a free service to help you track it down.
Just a bit of background: Child Trust Funds were set up for kids born between September 2002 and January 2011. The government kicked things off with a £250 deposit when the child was born and another £250 at age seven. For lower-income families, that initial deposit was £500.
Parents and friends could also add money to the account, which has led to an average balance of around £2,000 today. Every month, about 55,000 young people turn 18 and can either cash out or keep saving. It’s a nice little nest egg waiting for them!
