Did you know that millions of pounds worth of Child Trust Fund (CTF) money is still unclaimed in the UK? If you or your child have a CTF account, it’s important to know how to track down and claim any unclaimed funds. Our article will walk you through the simple steps to check if you have any unclaimed Child Trust Fund money and how to claim it. Whether you’re a parent trying to claim for your child, or you’re now 18 and ready to take control of your own savings, this article will help you understand everything you need to know.
What is a Child Trust Fund (CTF)?
A Child Trust Funds is a long-term savings account that was established by the UK government for those children born between 1 September 2002 and 2 January 2011. The government initially provided a £250 voucher to help parents start saving, with additional payments made later if the family’s income was low.
The CTF scheme was designed to encourage families to save for their children’s future. With the Child Benefit rate changes introduced in 2025, these savings are more important than ever and many accounts have grown significantly over the years with tax-free interest. However, if the account isn’t claimed by the time the child reaches 18, the funds may remain unclaimed.
How to Find Unclaimed Child Trust Fund (CTF) Money
To get started on locating any unclaimed Child Trust Fund money, follow these easy steps:
1. Use the HMRC Tool
The first step in claiming unclaimed CTF money is to use the official HMRC tool to track down the account. You’ll need the following information:
- Your full name
- Your date of birth
- Your address
If you’re claiming on behalf of your child, you’ll need the same details for them. Simply visit the HMRC website, enter the required information, and submit the form.
2. Wait for a Response
Once your request is submitted, you’ll receive a letter with details of the CTF provider holding your account. This can take up to 3 weeks for online submissions, or longer if you’ve used a postal application. If you haven’t received a response within 6 weeks, you can contact HMRC directly for further assistance.
3. Locate the Provider
The letter will tell you which provider holds the CTF account. You can then contact the provider directly to find out how to access the money. If the original provider no longer exists, HMRC will provide information on where the account has been transferred.
What to Do Once You Find the Child Trust Fund (CTF) Provider
Once you’ve located the provider, you can take the next steps to claim your money:
Withdraw the Funds
If you’re a parent claiming for a child under 18, you’ll be able to withdraw the funds; however, you may need to provide proof of your identity and relationship to the child. If the child is over 18, they can access the funds directly.
Transfer to an ISA
You can choose to transfer the CTF funds to an Adult ISA for more flexibility and potential tax-free growth. This is a popular option if the account is still held with an investment provider, as it allows you to reinvest the funds for the future.
Reinvest the Money
Alternatively, you might want to consider reinvesting the money in stocks, bonds, or savings accounts, depending on your financial goals. The CTF account may have grown significantly over the years, so it’s worth taking the time to review the options available.
Important Considerations Before Claiming Child Trust Fund
Before you go ahead and claim the money, here are a few things to keep in mind:
- Avoid Third-Party Services: Be cautious of companies offering to help you claim your CTF funds for a fee. Many of these services charge a high percentage (sometimes as much as 25%) for a task that can be done directly through HMRC for free. Stick to the official tools to avoid unnecessary costs.
- Account Fees: Some CTF providers may charge fees to manage the account, which could reduce the overall balance. Be sure to check for any charges when you contact the provider, and consider transferring the funds to a more competitive savings account or ISA.
- Transferring to a Junior ISA: If your child is under 18, consider transferring the CTF to a Junior ISA, which could offer higher interest rates and reduced fees. This will ensure the savings continue to grow in a tax-free environment until they are old enough to access the money.
Conclusion
Child Trust Funds are a valuable way for young adults to access savings that may have been forgotten. If you or someone you know was born within the dates of 1 September 2002 to 2 January 2011, it’s worth verifying whether any unclaimed funds are in a CTF account. The process is simple, free, and could make a real difference to your financial future.
So, if you’ve found an unclaimed CTF, now is the time to take action. Use the official HMRC tool to get started and make sure you claim the savings you’re entitled to. If you have any questions, book a free consultation with our expert today.
