A video on TikTok caught Tayo Olutunde’s attention two years ago regarding Child Trust Funds, but he was skeptical about its validity. However, after some investigation, the accounting and finance student found a previously unknown Child Trust Fund, making him over £2,000 richer.
Child Trust Funds were provided to children born between September 1, 2002, and January 2, 2011, with each child receiving a voucher valued at £250, or £500 for those from lower-income families. If parents didn’t open the account, HMRC would have done so on behalf of the child, leading many individuals to be unaware of their accounts.
Around 670,000 unclaimed Child Trust Funds exist, with an average balance of £2,200. Tayo, residing in Leeds at 22, shared his experience with The Mirror, stating that his initial skepticism turned into a pleasant surprise when he discovered his account with the help of his mother.
Locating a Child Trust Fund is usually straightforward, but frequent address changes may require additional paperwork. Tayo, who moved several times, faced this challenge but found the effort worthwhile after accessing his account and discovering funds exceeding £2,000. He spent part of the money on a holiday and invested the rest.
Encouraging others to check their accounts, Tayo emphasized the importance of utilizing the funds wisely. Child Trust Funds become accessible at age 18, and existing accounts can continue to receive contributions. For assistance in locating a lost account, individuals can contact HMRC or fill out a form on GOV.UK.
The Share Foundation, a charity, advocates for an automatic release scheme to reunite unclaimed Child Trust Fund funds with their rightful owners. Over 95,000 young people have benefited from The Share Foundation’s efforts, totaling nearly £200 million. Gavin Oldham, OBE, emphasized the significance of empowering young people from low-income backgrounds for a better transition to adulthood and breaking the cycle of deprivation.