HMRC warns 670,000 Britons could be missing out on £2,000 'forgotten cash' - how to check
Britons will need their National Insurance number to check if they're eligible for the unclaimed cash
GETTY
More than 670,000 Britons are urged to claim their Child Trust Funds, with an average of £2,212 waiting in unclaimed accounts.
HM Revenue and Customs (HMRC) is reminding eligible individuals to cash in their savings pots, which were set up by the Government for children born between September 1, 2002 and January 2, 2011.
Angela MacDonald, HMRC's Second Permanent Secretary and Deputy Chief Executive, said: "Thousands of Child Trust Fund accounts are sitting unclaimed – we want to reunite young people with their money and we're making the process as simple as possible."
The tax-free savings accounts were initiated with a £250 Government deposit, with additional contributions possible from families.
Young people can take control of their accounts at 16 and withdraw funds when they turn 18.
To locate their Child Trust Fund, young people can use the free online tool on gov.uk. They will need their National Insurance number and date of birth to access the information.
The initiative, expected to save £1.6 billion over the next five years
GETTYHMRC has warned against using third-party agents, who may charge up to £350 or 25 per cent of the account value for their services.
These agents can significantly reduce the amount received and often take longer than the free search method.
Gavin Oldham from The Share Foundation said: "If you are 18-21 years old, the Government would have put money aside for you shortly after birth. This investment would have grown quite a bit and it's in your name."
The Share Foundation has already helped over 65,000 young people connect with their Child Trust Fund accounts, totalling more than £125 million in value.
The Share Foundation, a registered charity, has proposed a "Default withdrawal at 21" scheme to the UK government. This initiative aims to connect young people, particularly those from low-income backgrounds, with their Child Trust Fund accounts.
Oldham said: "Our proposal is straightforward: to link the national insurance number on the Child Trust Fund account in order to enable its young adult owners' money to be delivered directly through the benefits, payroll, or student loan systems."
The scheme intends to ensure that the funds are used as originally intended: to provide resources for young adults starting their independent lives.
With approximately 28 per cent of the 6.3 million Child Trust Fund accounts opened by HMRC, many families may be unaware of their existence.
Reasons for losing touch with these accounts include moving house or lack of awareness about HMRC-initiated accounts.
Young people can easily locate their Child Trust Fund provider using the free GOV.UK tool or The Share Foundation's search facility.
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Both options require only the individual's National Insurance number and date of birth.
In the past year, over 450,000 customers successfully used the GOV.UK tool to find their accounts.
The Share Foundation's free search service has already assisted 65,000 young people in claiming their accounts.
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