News: Almost 2m children unaware they have £500 in savings
Every child born between September 2002 and January 2011 received a trust fund from the UK government – and millions have been forgotten about.
It’s been announced that millions of young people could be sitting on thousands of pounds without even realising. We take a look at how this could affect you.
What’s this story about?
In 2005, Gordon Brown introduced Child Trust Funds (CTFs) to help parents build a nest egg for their children.
This policy meant that every child born between 1 September 2002 and 1 January 2011 would receive a CTF voucher, which were worth between £250 and £500. Family and friends could then build on this starting figure, contributing from £10 a month up to £4,368 each year.
The pot of money can be accessed when the child reaches 18 and can be a valuable way of funding things like university costs – or it can be reinvested into a similar adult ISA.
However, it’s been announced that 1.8 million parents forgot to invest these vouchers. With many recipients nearly reaching 18 years old, provider OneFamily is now urging families to track down their accounts.
How does this affect you?
If you have kids turning 18 soon, you’ll know that life can start to get expensive. With things like moving costs and higher education expenses to pay for, they’ll need all the help that’s available to them.
And with some forgotten vouchers now worth around £2,000 – even if there were no additional top-ups – it’s not just a case of spare pocket money lying around. The good news is that you can still claim these savings, even if you didn’t realise they existed.
To tackle the problem, OneFamily has set up a dedicated page to help parents and children over 16 track down their accounts.
Our key tips
Whatever stage you’re at in life, having additional support is always welcome. Follow these top tips to make sure you’re in the best possible position.
Keep track – if you have kids or you were born during this period, head over to OneFamily to keep track of your savings
Contribute if you can – if there’s an opportunity to boost the savings pot, take it. Even if you think it’s only a small amount each month, every little helps.
Disclaimer: All information and links are correct at the time of publishing.