Martin Lewis Sounds the Alarm: Beware of Child Trust Fund Scams!
Money Saving Expert founder, Martin Lewis, has issued a stark warning to hundreds of thousands of Brits. While you might be eligible for a payout of up to £2,000 from HMRC through the Child Trust Fund (CTF) scheme, be wary of third-party companies offering to help you claim it.
Lewis, known for his consumer advocacy, highlights that 671,000 young adults are unaware they are owed an average of £2,212 each, thanks to the CTF scheme. This government-backed program, running from 2002 to 2011, provided tax-free savings or investment accounts for children, starting with a £250 government contribution at birth and another £250 at age seven. Lower-income families received a higher initial contribution of £500. Parents could also add their own funds, up to a maximum of £9,000.
The catch? Many have lost the paperwork or simply forgotten about these accounts. While the money becomes available at age 18, the potential for substantial growth, potentially exceeding £2,000 per account, remains untapped. Hargreaves Lansdown, a financial firm, estimates that a staggering one in six young people are oblivious to their CTF existence.
Who is Eligible and How to Claim Your CTF Funds
If you were born between September 1, 2002, and January 2, 2011, you are eligible for a CTF account. You can take control of the account at 16, but withdrawals are only permitted upon turning 18. The account is tax-free and does not affect any benefits or tax credits you may receive.
If you suspect you have a CTF account but lack details, contact the account provider directly. If you don’t know who they are, ask your parents or contact HMRC for details about when the account was opened.
HMRC Can Help!
You can request HMRC to locate your CTF account if you are:
* A parent or guardian of a child under 18
* 16 or older and seeking your own trust fund
The process is straightforward. You can initiate it online or by requesting details via mail. Visit the Child Trust Fund section on the government’s website for detailed instructions. Simply provide your National Insurance number and date of birth to get started. HMRC aims to respond within three weeks.
Remember: It’s Free!
Lewis emphatically stresses that this is a completely free service. There’s no need to pay anyone to find your CTF money. Beware of companies claiming to do this for you, as they might take a substantial cut of your rightful funds.
Don’t let your hard-earned money slip away. Take control, claim what’s rightfully yours, and avoid falling victim to CTF scams. Your future self will thank you!