HMRC has announced through an online alert that certain individuals, particularly those approaching 18 years of age, may be eligible to claim a financial windfall of up to £2,200 from Child Trust Funds. These funds were initiated by the Labour government for children born between September 1, 2002, and January 2, 2011, and the initial investment in these accounts ranged from £250 to £500, depending on family circumstances. The funds could be added to by families until the child turns 18 years old, at which point the child can access the saved amount.

For those reaching the age of 18 in 2023, specifically those born in 2005 or 2006, this announcement highlights the importance of checking for any unclaimed Child Trust Funds that may be available. Parents and guardians are urged to verify whether their young adults have these savings accounts, which could now yield a significant amount of money waiting to be claimed. A representative from HMRC stated on X that the average amount waiting in unclaimed funds is approximately £2,200.

The initiative allows eligible individuals to access funds that could greatly aid in transitioning into adulthood, offering support for education, housing, or other life expenses. As more individuals reach the eligibility age in the coming years, this reminder serves as a critical nudge for families to ensure that their children do not miss out on these financial resources due to lack of awareness or oversight about the Child Trust Funds.