Child Trust Fund: What was it and could you be eligible for £2000? | UK News

Many of us will of course continue to seek help from the Government in the form of benefits – including the second cost of living payment, due to be paid out in the coming weeks.

But for those in a certain age group, there’s a glimmer of good news on the horizon.

That’s because hundreds of thousands of teenagers born between certain dates could be sitting on a Government-backed nest egg they have no idea about – one which could even be worth around £2,000.

It’s all because of something known as Child Trust Fund vouchers – but who is eligible to receive them?

Here’s what you need to know…

What are Child Trust Fund vouchers?

Child Trust Fund vouchers are part of a savings scheme which the Government offered to new parents from 2002 until 2011.

The long-term tax-free accounts were started up with £250 from the Government when a child was born, with another £250 being paid when they turned seven.

Those on lower-income families were given payments of £500.

Parents were also able to top up the sum in the account to a maximum of £9,000.

All of which means the funds in the account could have grown quite a bit depending on how they were invested – with HMRC estimating the average account would be worth around £2,000.

But while over five million of these accounts were opened, they also have said a fair number have been forgotten about – with one financial firm, Hargreaves Lansdown, estimating that as many as one in six young people don’t know the account exists.

Who is eligible for a Child Trust Fund account?

If you were born between September 1 2002 and January 2 2011 you were eligible for a Child Trust Fund account.

You can take control of the account yourself once you are 16, but account holders cannot withdraw the money until they turn 18.

The account is tax-free and will not affect any benefits or tax credits you may receive.

If you think you may have a Child Trust Fund account but are uncertain of the details, you can contact the account provider directly – if you don’t know who they are you can either ask your parents or contact HMRC for details of when the account was opened.

You can ask HMRC to find a Child Trust Fund if you’re:

• a parent or guardian of a child under 18
• 16 or over and looking for your own trust fund

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