• March 28, 2024
 Matured CTFs: £374 million left unclaimed

Matured CTFs: £374 million left unclaimed

New figures issued by HMRC reveal that in April 2021, an incredible £10.4 billion was held in Child Trust Funds (CTFs) of which £374 million remains unclaimed in matured accounts.

CTFs started maturing in September 2020, and between then and April 2021, £374 million has since remained unclaimed in matured accounts. That’s almost as much as has been withdrawn (£393 million). Figures show the average holding was £1,911 and that 6.3 million accounts have been opened, with 1.8 million of them opened by HMRC after parents didn’t make a choice.

All children born between 1 September 2002 and 1 January 2011 qualified for a CTF but the scheme was scrapped in January 2011, although children who already had a CTF at this point were able to keep it.

Sarah Coles, senior personal finance analyst, Hargreaves Lansdown commented on the figures:

“Almost as much cash is left languishing in matured Child Trust Funds as has been withdrawn – hundreds of millions of pounds were left unclaimed just seven months after the accounts started maturing. It means the incredible sums sitting neglected in Child Trust Funds aren’t just a missed opportunity to make more of your money – a huge chunk of it could end up as money down the drain.”

This is the first set of figures showing matured accounts, and it emerged that between September 2020 and April 2021, £374 million remained unclaimed in matured accounts. That’s almost as much as has been withdrawn.

“There’s a good chance that a huge chunk of these children never even knew they had a CTF, because of the 6.3 million accounts opened, 1.8 million of them were opened by HMRC after the parents didn’t make a choice. Others have been forgotten along the way”, said Sarah.

“It’s difficult to know how many accounts have been lost, but given that almost 4.6 million didn’t have any money paid into them during 2020/21, that’s potentially millions that could have gone astray.”

Advisers are therefore urging parents to check paperwork, as well as the Government Gateway for more information on CTF providers.

 

 

Annie Simmons

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