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Urgent Warning: Millions of Young People Could Be Missing Out on £2,000 Each - Check Now!

12 October, 2024 - 1:42AM
Urgent Warning: Millions of Young People Could Be Missing Out on £2,000 Each - Check Now!
Credit: oceanlegacy.ca

Martin Lewis has issued an alert to millions of people in the United Kingdom who were born between 2002 and 2011. The money expert took to social media to tell folks about the warning; something he labelled as 'important to anyone aged under 22'.

It's not the first warning from Martin this week that concerns younger people, with the Money Saving Expert founder issuing key advice to everyone who isn't married in the UK.

He's also shared a handy hack on how to get flights for less than a fiver to some of the most stunning places across Europe, and shared his 'shock' at how many people are making a costly car insurance mistake.

It's been a busy week for the Mancunian, then.

Well, he's not stopping there. On Thursday (10 October), Lewis shared a fresh warning to those aged 22 and under.

It's to do with something called a Child Trust Fund. And while it sounds pretty fancy, it's not.

Child Trust Funds: A Reminder

Child trust funds were long-term tax-free savings accounts and you will have (or have had) one if you were born between 1 September, 2002, and 2 January, 2011. Importantly, your parent or guardian will have also had to have a child benefit claim for you, and you will have had to have been living in the UK and not been subject to immigration control.

While your parents could have put money in it, everyone was also given an initial £250 voucher from the government. Those from lower income households were also eligible for an additional £250 payment.

"You may have £2,000 in a Child Trust Fund that you don't know about and you can get the money out for free," Lewis says in a video posted to X (previously known as Twitter).

"I've started to see adverts and videos on social media from firms trying to charge you to access your own money, or trying to get a cut of your savings to give you your money. Don't touch them, don't sniff them, don't smell them, don't go near them."

Lewis said that he and his team have seen firms trying to take as much as 25 percent of the Child Trust Fund total to do the claim for you.

How to Access Your Child Trust Fund

On your Child Trust Fund, Lewis explains that you can take the money out of your account when you hit the age of 18.

He says: "The stats show that 670,000 people aged between 18 and 22, who have one of these, have not touched the money and many of them don't know about it. And The average amount in there? £2,212."

If your parents didn't open the account for you within a year of your birth, HMRC will have done it for you in the form of a 'stakeholder' Child Trust Fund.

Over on Gov.uk, there is a free tool that will help you find your account, whether it was set up by HMRC or not.

"All you will need is your National Insurance number and your date of birth in order to be able to use the tracing service," Lewis explains. "It will reply within three weeks and then it'll tell you which bank, savings or investment provider your money is with and then you are able to take your money out if you want."

Lewis says that if you don't need the money now, it might be worth putting it in a savings account or inside a cash ISA.

Why Are So Many People Missing Out?

Latest figures from HMRC show more than 670,000 people aged 18 to 22 have yet to claim their Child Trust Fund. The average savings pot is worth £2,212. Child Trust Fund accounts can no longer be opened, after the scheme stopped in 2011 - but you can continue to pay into existing accounts.

If you know the name of your Child Trust Fund provider, you can contact it directly to find out more about your account. If you've lost track of your account, you can ask HMRC to help you locate it by filling out a form on GOV.UK. You can ask HMRC to find a Child Trust Fund if you’re a parent or guardian of a child under 18, or if you’re 16 or over and looking for your own account.

You will need your National Insurance number and Government Gateway - this is free to create - to fill out the online form. Once you've entered the right information, HMRC should tell you the name of the Child Trust Fund provider within three weeks.

You can also request details by post by writing to: Charities, Savings and International 1, HMRC, BX9 1AU. Try to include as many details as possible, such as the full name, date of birth and address of the account holder, plus their National Insurance number.

Don't Get Scammed!

It is only possible for the child to access the money in their Child Trust Fund when they turn 18. If you've lost track of a Child Trust Fund account, there are free and easy ways to locate it. In a new warning published on X/Twitter, Martin urged against paying a firm to do this for you. He said: "A warning to those age 22 or under. You may have £2,000 in a Child Trust Fund. You can access it for free. Yet some firms are trying to charge you to get your own money. Don’t pay."

How to Use Your Child Trust Fund Money

The money in a Child Trust Fund has the potential to be life changing and the lack of knowledge about them shows the importance of financial education and financial planning from a young age. A disproportionate amount of the money is unclaimed by young people from disadvantaged backgrounds who are the very people who would benefit most from these funds.

The investment could be placed into an adult ISA or put towards driving lessons, education or starting a business. It could make a real difference to their future plans.

It's Your Money - Claim It!

Martin Lewis' warning serves as a timely reminder to young adults to check if they have an unclaimed Child Trust Fund account. It's a simple process that could potentially unlock a substantial sum of money, providing a welcome financial boost during these challenging economic times.

So, if you were born between 1 September 2002, and 2 January 2011, take a few minutes to check if you have a forgotten Child Trust Fund account. It could be worth your while!

Urgent Warning: Millions of Young People Could Be Missing Out on £2,000 Each - Check Now!
Credit: gijn.org
Urgent Warning: Millions of Young People Could Be Missing Out on £2,000 Each - Check Now!
Credit: motherjones.com
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Martin Lewis Child trust fund Savings
Maria Garcia
Maria Garcia

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Passionate editor with a focus on business news.

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