New research has found as much as £1.7 billion lies unclaimed in the government-run savings accounts which were launched in 2005 and scrapped in 2011.
Under the CTF scheme the government gave every child born between 2002 and 2011 a sum of money which was invested in a tax-free savings account. Parents, grandparents and others were then able to it up, if they wished, until the account matured. The accounts were locked for withdrawals until the child turned 18.
Whilst the first CTFs came into maturity in 2020, data from the Public Accounts Committee (PAC) showed there was currently £1.7bn in lost CTFs.
According to the HMRC website the average account is worth £2,100.
Yet, despite the fact many 16 to 18 year olds are entitled to their money, it would seem there is a poor understanding of the CTF scheme amongst this age group which could mean much of the money goes unclaimed.
Research by Wealthify, digital investment service, and the Centre for Business and Economics Research (CEBR) found 51% of 16 to 18-year-olds were unaware of the existence of CTFs — with 58% revealing they did not know how to claim one.
Even many young people who were aware of CTFs were unsure if they were eligible (25%) or how to go about claiming their pot of money (58%). Their parents are similarly unaware, even of the CTF initiative itself (37%).
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