Asked by: Lord Macintosh of Eastwood (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what consideration they have given to the Share Foundation’s proposal for an automatic release scheme at the age of 21 for holders of unclaimed HMRC-allocated Child Trust Funds ahead of the forthcoming budget.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
The Government is aware of proposals for the automatic release of funds in unclaimed matured Child Trust Fund (CTF) accounts, where the account was opened by HMRC and the account holder has turned 21.
The Government does not have the authority to access or transfer these funds. These savings belong to the account holders and are held by private sector providers.
The Government is committed to reuniting young people with their CTFs. HMRC works with providers, industry representatives and others to raise awareness and help individuals trace their accounts, including through targeted communications and a free GOV.UK tracing service.
The Government has also established a dedicated Taskforce to address unclaimed matured CTF accounts and improve outcomes for account holders. This brings together Government and industry to strengthen tracing activity, increase engagement, and support access to funds.
The Government has announced it will be introducing an amendment to the Financial Services and Markets Bill to enable the creation of a new scheme through secondary legislation. This will allow suitable people such as parents and carers to access and manage a young person’s Child Trust Fund where that young person lacks the mental capacity to do so themselves.