Disadvantaged young people are missing out on nearly $275 million in unclaimed Child Trust Funds (CTFs), according to charities. CTFs are tax-free savings accounts established for those born between 1 September 2002 and 2 January 2011. Each child received a government contribution of around $250 or $500 if from low-income families. Additional funds were provided under certain conditions when children turned seven. If families did not take action to claim the accounts, they were managed by HMRC. The average amount held in CTFs is about $2,000.
Almost 275 million worth of government-allocated funds is being hidden from disadvantaged young people and going unclaimed, charities have warned.
Child Trust Funds (CTFs) are long-term, tax-free savings accounts for people born between 1 September 2002 and 2 January 2011, which they can access when they turn 18.
Children received around 250 each from the government at the time their CTF was started, or 500 if they were from low-income families or in local authority care.
The accounts could also be added to by a parent, with the average amount held in CTFs totalling around 2,000.
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