Home > Claiming Back > An Overview of Unclaimed Child Trust Funds

An Overview of Unclaimed Child Trust Funds

By: Garry Crystal - Updated: 16 May 2019 | comments*Discuss
 
Child Trust Fund Tax Free Unclaimed

The Child Trust Fund (CTF) is a government run fund designed as an investment for children. The fund no longer runs but many parents are unaware that if they fulfil certain requirements they can still claim trust fund vouchers for their children.

What is the Government Child Trust Fund?

The Child Trust Fund was set up by the government in order to give children a financial boost. The fund provides a financial amount to children of parents who were in receipt of child benefit. The Child Trust Fund no longer operates to provide money for children born after the 2nd January 2011. Many parents have read media reports that the Child Trust Fund has now shut down. But this is not entirely the case and parents can still claim from the trust fund for their children.

The Amount Available Through the Child Trust Fund

There is a difference in the amount of child trust available depending on certain stipulations. To be eligible for the £250 Child Trust Fund a parent must have received child benefit or the European Union family benefit before the 2nd August 2010. The child must also have been born on 1st September 2002 or after, but before 3rd January 2011. To be eligible for the £50 Child Trust Fund the parent must have received child benefit at any point between 3rd August 2010 and 3rd January 2011. The child must also have born on 1st September 2002 or after, but before 3rd January 2011.

How the Child Trust Fund Is Paid

The Child Trust Fund of either £50 or £250 is paid out in the form of a voucher. This money is tax free and a savings and investment account can be opened for the child with this voucher. Once the account has been opened the money cannot be touched by anyone except the child when they reach the age of 18. Parents can place up to £1200 into the child’s savings and investment account each year. The money placed into the account will not affect other benefits paid to the parent, such as Tax Credits.

Unclaimed Child Trust Fund Vouchers

Many people who are eligible have still not claimed their Child Trust Fund vouchers. Even while the scheme was officially open a huge number of parents did not claim this asset. This was due to being unaware of the scheme; in 2007 the media reported that around £12.5 million was unclaimed in Child Trust Fund vouchers. This meant that around 50,000 families in the UK had not claimed their trust fund vouchers. Parents who do meet the eligibility requirements can still claim these vouchers.

Additional Payments to the Child Trust Fund

Not only can claimants receive the initial Child Trust Fund voucher amount they can receive an additional payment. This payment should be received when the child reaches the age of seven. Again, there are eligibility rules and the child must have turned seven before 31st July 2010. The amount that will be received when the child turns seven will be the same as the initial voucher amount. This means if a child received £250 as the initial amount they will receive an additional £250 when they reach seven years old.

Future Government Plans for Children’s Savings Plans

Although the Child Trust Fund is no longer available to children who were born after the 2nd January 2011 there are plans for a new children’s savings account. The government intends to implement a Junior Individual Savings Account (Junior ISA). This is scheduled to come into effect in the autumn of 2011. The Junior ISA will work as a tax free savings and investments account for children. Although the present Child Trust Fund has closed those who have already set up a CTF tax free account can still place money into this account as normal.

Any parents who do meet the eligibility requirements for the Child Trust Fund should make sure they claim the vouchers that they are due. Trust funds are a great way to make children financially aware from a young age. The Child Trust Fund is one more of the many government benefits that claimants miss out on every year in the UK.

You might also like...
Share Your Story, Join the Discussion or Seek Advice..
[Add a Comment]
Hi how do i claim my children's trust fund voucher pls i do rember getting sent them but not activated them and now I hear I can still claim it for them advise on how to do so pls would be great thank you
beccs - 16-May-19 @ 7:37 PM
Hi I never claimed my children's child trust fund,my daughter was born September 2004 my son was born may 2007 been reading, that the government would have done so on behalf of my children how do I find out where they are thanks.
Lynn - 14-Feb-19 @ 4:42 PM
Cabin you tell how I find my private trust fund I paid into for my daughter please
Chicken - 23-May-18 @ 4:08 PM
How do i claim my childrens trust fund that i paid into my woolwich/barclays bank back in 2000. the hmrc just sends me round in circles please help !!!
blondie - 27-Mar-18 @ 1:17 PM
How do I get my daughters money she's now 19 and don't know where to get it from as I've moved address
Lou - 5-Jun-17 @ 11:51 AM
Hi my son recieved £1200 voucher back in 2003 so was wondering if he can claim another one , as when I received the voucher they said he would be sent another one in a few years ,but he never got it , thank you
Kelly - 20-May-17 @ 2:02 PM
My child was born in 2007 to a British father, but I didn't know about the Child Trust Fund so haven't claimed before. I just want to find out whether my child can still claim it now. Thank you
hetty - 20-Jan-17 @ 2:11 PM
Share Your Story, Join the Discussion or Seek Advice...
Title:
(never shown)
Firstname:
(never shown)
Surname:
(never shown)
Email:
(never shown)
Nickname:
(shown)
Comment:
Validate:
Enter word:
Topics
Latest Comments
  • Matty
    Re: The Facts on Unclaimed Land and Property in the UK
    I found a row of 4 new build houses that have been boarded up and have been empty for at least 4 years…
    4 July 2019
  • Ned
    Re: The Facts on Unclaimed Land and Property in the UK
    Hello I have came across a piece of abandoned land,no buildings is on this land it is fenced all…
    27 June 2019
  • Babs
    Re: Unclaimed Pensions
    My husband worked for a Canadian bank from 1975 to 1978. He was badly brain damaged in a car accident and was never able to work again. We…
    27 June 2019
  • Dick
    Re: How To Claim Back Overpayments on Utility Bills
    I’m a council tenant in Kensington and Chelsea can I get a refund on my water bills ?
    25 June 2019
  • Jin
    Re: Unclaimed Pensions
    My husband paid into a pension scheme at both the pit and steel works. Sadly my husband died before he could find where to claim these…
    13 June 2019
  • Jin
    Re: Unclaimed Pensions
    My husband paid into a pension both at the pit and steel works. Sadly my husband died before he found out where to put a claim in for these…
    13 June 2019
  • Jin
    Re: Unclaimed Pensions
    My husband paid into two work pension both steel works and pit. He's since died before we found who we needed to get in touch with to put a…
    13 June 2019
  • Dave C.
    Re: How To Claim Back Overpayments on Utility Bills
    Since having a water metre fitted the price of water is £19-33.Before the metre was fitted we payed…
    11 June 2019
  • FatRay
    Re: Unclaimed Life Insurance
    Good evening. My name is Raymond Parsons and live at 7 Tapps Lane brixton Plymouth PL82BZ My mother passed away in December 2017 and…
    7 June 2019
  • Millzy
    Re: Unclaimed Life Insurance
    Hi my mum past away after taking care of her with dementia for 12 years.anyway my granny insured all her daughters and sons but mum was…
    6 June 2019