Find Child Trust Fund Free

If you were born between 1 September 2002 and 2 January 2011, there is a good chance you have a Child Trust Fund (CTF). With hundreds of thousands of accounts still unclaimed and holding an average value of around £2,000, it is worth checking whether money is waiting for you.

Child Trust Funds were introduced by former Chancellor Gordon Brown as a long-term savings initiative designed to give young people a financial head start in adulthood.

Under the scheme, eligible children received a government contribution of:

• £250 at birth
• £500 for children from lower-income families
• In some cases, a further contribution at age seven

More than 6 million Child Trust Fund accounts were opened before the scheme closed to new applicants in January 2011. The idea was simple: provide every child with a tax-efficient savings account that could grow over time and be accessed when they reached adulthood.

Parents, grandparents and other family members were encouraged to make additional contributions, meaning many accounts are now worth significantly more than the original government payment.

As the first generation of Child Trust Fund holders reached adulthood, a significant issue emerged.

Many young people had no idea they even had an account.

Families may have moved house, forgotten which provider held the account, or simply lost the paperwork over the years. As a result, hundreds of thousands of accounts have become effectively ‘lost’.

According to government statistics, around 760,000 Child Trust Funds belonging to adults aged 18 and over remain unclaimed, representing more than £1.5 billion in savings that young people have yet to access. The average account balance is approximately £2,000.

The Financial Conduct Authority (FCA) has raised concerns about unregulated firms targeting young adults with offers to locate their Child Trust Funds.

Some companies charge:

• Upfront fees
• Monthly subscription charges
• Success fees of several hundred pounds
• Fees of up to £400 simply to trace an account

While these firms may successfully locate an account, they are often using information that can be obtained free of charge through official channels.

The FCA has emphasised that consumers do not need to pay anyone to find a Child Trust Fund, since free services are already available.

1. Use the Government’s Online Tracing Service

If you’re over 16 and don’t know who your Child Trust Fund provider is, you can use HMRC’s free tracing service on GOV.UK: https://www.gov.uk/child-trust-funds/find-a-child-trust-fund

The service allows HMRC to identify the provider that originally opened your account. You’ll typically need:

• Your National Insurance number
• Your personal details
• Your adoption details (if applicable)

HMRC usually responds within a few weeks with details of the provider holding the account.

2. Use The Share Foundation’s Free Search Tool

The Share Foundation, a UK charity dedicated to helping young people access their savings and financial assets, also offers a free Child Trust Fund search service: https://www.sharefound.org/find-your-account-ctf

The charity’s Child Trust Fund Recovery Campaign helps young people locate lost accounts at no cost and has supported thousands of searches across the UK.

When the scheme was running, parents could choose between several different types of Child Trust Fund.

Cash Child Trust Funds

These worked similarly to a traditional savings account, earning interest over time.

The default option for many families, stakeholder funds invested money in stock market-based funds and automatically reduced investment risk as the child approached adulthood.

Parents could select investment funds where returns depended on stock market performance and fund growth.

Because many of these accounts were invested for nearly two decades, some have grown considerably in value, particularly where families added extra contributions over the years.

Once a Child Trust Fund holder turns 18, they gain full access to the money.

They can choose to:

• Withdraw the funds
• Transfer the money into an ISA
• Continue investing for the future
• Use the money towards education, travel, training or a first home deposit

The account holder can take control of the account from age 16, although withdrawals cannot normally be made until age 18.

Since the Child Trust Fund scheme closed in 2011, it has been replaced by the Junior ISA (JISA).

Unlike Child Trust Funds:

• There is no government contribution
• Parents or guardians must open the account
• Family members can make contributions
• Growth and interest remain tax-free

Many young adults who discover an old Child Trust Fund choose to transfer the proceeds into an adult ISA once they gain access to the money.

With billions of pounds still sitting in unclaimed Child Trust Funds, it’s understandable that young adults are eager to track down their money. However, there is usually no need to pay expensive tracing fees.

Before handing over hundreds of pounds to a claims company, use the official government service or The Share Foundation’s free search tool. In many cases, locating your Child Trust Fund can be done quickly, safely and completely free of charge.

Find your Child Trust Fund through HMRC https://www.gov.uk/child-trust-funds/find-a-child-trust-fund

The Share Foundation Child Trust Fund Search https://www.sharefound.org/find-your-account-ctf

Folkes Worton LLP Chartered Accountants
Accounting for the Future