Young Adults Urged to Claim Child Trust Funds During National Apprenticeship Week
As National Apprenticeship Week unfolds from 9 to 15 February, HM Revenue and Customs (HMRC) is advising young individuals to promptly locate and claim their Child Trust Funds (CTFs). Current estimates reveal that approximately 758,000 young people have yet to access the funds, which average £2,242 per individual, potentially offering a crucial financial boost as they embark on their careers.
The Importance of Child Trust Funds
Child Trust Funds, established for children born between 1 September 2002 and 2 January 2011, serve as long-term, tax-free savings accounts. Initially funded with at least £250 from the government, these accounts allow young individuals to assume control at the age of 16. Upon reaching 18, the funds mature, and account holders can choose to withdraw or reinvest their savings.
Apprenticeships and Financial Readiness
With a significant number of apprentices under 24 in the UK, harnessing the benefits of their Child Trust Funds can significantly enhance their financial readiness as they transition to adulthood. These young individuals can make the most of their savings during this formative career phase.
Real-Life Impact: Success Stories
Hope Kerr-Williams, a 22-year-old apprentice from Nottingham, recounts her experience of claiming her Child Trust Fund at 18. With her parents informing her of the account’s existence, she was able to access a substantial sum of £5,000, which alleviated her financial burdens as she began university.
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 month’s rent and buy essentials for my accommodation, which all adds up when you have to buy everything at once.
Hope noted the significance of her savings for maintaining financial independence during university.
How to Locate a Child Trust Fund
For young individuals who know where their Child Trust Funds are held, contacting the respective savings provider directly is advised. For those uncertain about their account details, the quickest method to retrieve this information is via the GOV.UK Child Trust Fund locator tool. To initiate a search, individuals need to submit their National Insurance number and date of birth.
For those lacking their National Insurance number, downloading the HMRC app allows them to easily access this vital information and store it in a digital wallet. The app has garnered nearly 1.7 million downloads among young people, who can also find useful details on their tax codes and employment history.
The Government’s Call to Action
Myrtle Lloyd, HMRC’s Chief Customer Officer, stated the importance of these funds, urging the youth, whether starting a job or heading to university, to locate their Child Trust Funds. She emphasized that accessing these funds can significantly ease financial pressures during pivotal life transitions.
With this initiative, the government aims to ensure that young people capitalise on the financial support designated for them, fostering greater independence and improving their prospects as they step into the adult workforce.
Source: official statements, news agencies, and public reports.
https://www.gov.uk/government/news/claim-your-child-trust-fund-this-national-apprenticeship-week
