Child Trust Funds

A Child Trust Fund (CTF) is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011, which they can access when they turn 18. The government paid more than £2 billion into CTFs for 6.3 million children born during this period. Most children received around £250 each from the … Show more

A Child Trust Fund (CTF) is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011, which they can access when they turn 18. The government paid more than £2 billion into CTFs for 6.3 million children born during this period. Most children received around £250 each from the government at the time their CTF was started, while those from low-income families or in local authority care received an additional £250. But the NAO has said in its report hundreds of millions of pounds in Child Trust Funds (CTFs) set up by the government between 2005 and 2011 to help young people financially at the start of their adult lives has not yet been claimed. Dame Meg Hillier MP, Chair of the Committee of Public Accounts, commenting on the NAO’s finding, said: “HMRC have left £2 billion of taxpayers’ money sitting in Child Trust Funds for years while the organisations looking after the funds earned millions from them, yet HMRC does not know how many young people have lost track of their money. “Its latest figures show almost £400 million had yet to be claimed, which in a cost-of-living crisis could be a vital lifeline to young people, particularly those from low-income backgrounds. “HMRC needs to take Child Trust Funds off the backburner and proactively help reunite young people with their funds.” The Committee will question senior officials at HMRC and executives at The Share Foundation. If you have relevant evidence to inform the Committee’s questioning please submit it here by 23:59 on Wednesday 3 May. Please have a look at the requirements for written evidence submissions and note the Committee cannot accept as evidence material that has been published elsewhere. Show less