HMRC says people in one age group ‘could claim £2,242 this week’ | Personal Finance | Finance

HM Revenue and Customs (HMRC) is encouraging young people who haven’t yet accessed their Child Trust Fund to do so during National Apprenticeship Week, running from February 9 to 15. While apprenticeships offer an excellent foundation for entering the workforce, HMRC’s most recent data reveals that 758,000 young people may be losing out on funds as they’ve not yet claimed the savings held in their Child Trust Fund account.

Child Trust Funds are long-term, tax-free savings accounts established for children born between September 1, 2002, and January 2, 2011, with an opening government contribution of at least £250. Young people can assume control of their account at 16, but upon reaching 18 years of age the account matures and they can determine whether to withdraw the funds or reinvest them.

With hundreds of thousands of apprentices under 24 throughout the UK, a Child Trust Fund valued at approximately £2,242 on average will provide them with a solid financial foundation. Hope Kerr-Williams, a 22-year-old apprentice from Nottingham, accessed her Child Trust Fund at 18.

Hope discovered her Child Trust Fund account during her teenage years. Her parents had informed her where the money was invested and that they had deposited an inheritance into it on her behalf.

The account was valued at £5,000 when she claimed it, which she used to contribute towards her living costs when beginning university. Hope explained: “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. I also bought a laptop for my course.”

She revealed the fund proved invaluable in managing her initial university costs and urged her peers to access theirs: “Having my Child Trust Fund account saved me from going into an overdraft or borrowing money when I had a lot of expenses at the start of university. It gave me independence and a great start to adult life, which I’m still grateful for.”

Following her graduation last summer, Hope joined HMRC in November. She is among 870 apprentices currently working with HMRC, undertaking a Level 4 PR and Communications Apprenticeship.

She said: “I’m enjoying applying what I’ve learnt to my job. Apprenticeships allow you to work, study and gain experience while earning a qualification that’s directly relevant to your role. I’d recommend an apprenticeship to anyone.”

How to find and claim your Child Trust Fund

Young people who are aware of where their Child Trust Fund is held can get in touch with their savings provider directly. Those unsure of their fund’s location can quickly and easily track it down using the GOV.UK Child Trust Fund locator tool.

HMRC’s Chief Customer Officer, Myrtle Lloyd, said: “Whether young people are on an apprenticeship, starting their first job, or making plans to go to university, a Child Trust Fund can make all the difference. Find yours today by searching ‘find my Child Trust Fund’ on GOV.UK.”

Locating a Child Trust Fund account online is a straightforward process. To initiate a request, youngsters simply need to provide their National Insurance number and date of birth.

For those who don’t have their National Insurance number readily available, they can access it via the HMRC app and store it in their digital wallet. The HMRC app has already been downloaded by nearly 1.7 million people under the age of 25.

While viewing National Insurance numbers is one of the most frequently used features of the HMRC app among young users, it also provides other vital information at their disposal – including Pay As You Earn (PAYE) details, tax codes, and employment history. Additional information about Child Trust Funds can be found on GOV.UK.