HMRC reports that 758,000 young people have yet to claim their Child Trust Fund payments, which could average £2,242 each, and is encouraging them to do so during National Apprenticeship Week.
The HM Revenue and Customs (HMRC) is making a public appeal for young people who were born between September 1, 2002, and January 2, 2011, to claim their Child Trust Fund payments as National Apprenticeship Week approaches. With an estimated 758,000 eligible individuals yet to make their claims, each could benefit from an average payment of £2,242 - funds that many may not realize are available to them. This initiative not only aims to provide young people with financial support but is also framed within the context of encouraging youth to access educational and job opportunities through apprenticeships.
The Child Trust Fund (CTF) was initiated as a means to promote savings among children, particularly with a government-backed initial contribution of at least £250. The structure of these long-term, tax-free savings accounts allows eligible students to take control of their funds at the age of 16, maturing at 18, where they must decide whether to cash out or re-invest the money. With the current financial climate, immediate access to these funds could significantly aid young adults as they transition to independence.
Amid increasing costs of living, HMRC's campaign to raise awareness about unclaimed Child Trust Funds highlights an important aspect of social support that could alleviate some financial stress for young people entering the workforce. By promoting the ease of the claiming process—reported to take only five minutes—the government is simultaneously incentivizing savings habits and providing a much-needed financial resource to assist young adults with their future endeavors during a pivotal moment in their lives.
