Thousands of young people missing out on money they don't know about
People aged between 18 and 23 may have thousands in unclaimed government accounts.
**Thousands of Young People Unaware of Untapped Child Trust Funds**
Many young individuals are missing out on significant sums of money held in Child Trust Funds (CTFs) because they are simply unaware of their existence. Kae Tapscott, from Tredegar in Blaenau Gwent, discovered he had £4,000 waiting for him only after his social worker informed him just before his 18th birthday. Kae, who had never heard of CTFs, is not alone in this predicament.
CTFs were established for every child born in the UK between September 1, 2002, and January 2, 2011, with initial government contributions. Despite this, over 750,000 accessible accounts remain unclaimed. While the exact amount in each account varies, the average value exceeds £2,000.
Kae, an aspiring actor studying performing arts at Coleg Gwent, is now urging other young people to investigate potential funds they may be owed. "Don't just leave it and do nothing because you might not receive anything if you don't look," he advised. Kae has since invested his £4,000 in an ISA to save for a future home.
Initially, Kae faced challenges in locating his CTF details due to the variety of providers that could hold them. He ultimately utilized The Share Foundation's free CTF finder service. He expressed surprise, stating, "I thought I'd get it automatically but I didn't hear anything. I thought the government would give it to me but I actually had to get it by myself."
According to The Share Foundation, a charity managing accounts for young people in care on behalf of the UK government, an estimated £83 million lies unclaimed in Wales alone.
Most CTFs were initiated by parents with a government voucher worth £250, or £500 for low-income families. An additional government payment was made when the child turned seven, and family members could also contribute. In some instances, the Welsh government also made small payments to the funds of Welsh children. For children whose parents or guardians did not set up an account, the UK government created CTFs on their behalf.
**Key Facts about Child Trust Funds:**
* Approximately 6.3 million CTFs were established for children born in the UK between September 1, 2002, and January 2, 2011.
* More than 750,000 matured accounts, with an average value of around £2,200, are currently unclaimed.
* The amount of money in each CTF is not uniform.
* Young people can take control of their account at 16 but cannot access the funds until they turn 18.
* It is crucial never to pay anyone for assistance in finding your CTF. Free search services are available via gov.uk or The Share Foundation.
Gavin Oldham, chair of The Share Foundation, attributes the high number of unclaimed accounts primarily to young people simply not being informed about them. He emphasized that the purpose of CTFs was to provide young adults with "some resources for when they became an adult so that it would actually give them a good start."
Oldham advocates for the UK government to implement an automatic release scheme for young people whose CTFs were government-created, as this group is most likely to be unaware of their funds. He suggested that "If they haven't found it by the time they're 21, the money should be released through payroll, benefits or student loan routes."
The UK government, however, stated that these savings belong to the account holders and are managed by private sector providers. "The government does not have the authority to access or transfer these funds," it clarified. The government affirmed its commitment to reuniting young people with their CTFs, noting that "HMRC works with providers, industry representatives and others to raise awareness and help individuals trace their accounts, including through targeted communications and a free GOV.UK tracing service."