Millions of Teenagers Eligible for Baby Bonds Payout


Millions of teenagers are set access their own pot of money in Child Trust Funds which could be worth up to £50,000 each.

The first of the UK’s “child trust fund babies” turn 18 in September, triggering the start of a multibillion-pound payout to an estimated 5.5 million young people.

They will be the first to get their hands on their Child Trust Fund (CTF) given to them when they were born. The tax-free funds were launched in 2005 by then chancellor Gordon Brown to encourage families to save for their children’s future but the scheme was later scrapped.

Under the scheme, every child born between September 1, 2002, and January 2, 2011, received a £250 voucher, or £500 if they were from a low income family. They received a second voucher at age seven.

Around 4.5 million parents or guardians paid into the fund and a further 1.8 million was set up by HMRC where parents or guardians did not open an account.

That means some children do not know there are accounts in their name, so are unaware their money is waiting for them.

The accounts are not held by HMRC, but by a number of Child Trust Fund (CTF) providers who are financial services firms.

Here’s 10 facts about the scheme and how you can claim:

  1. If you were born between 1 September 2002 and 2 January 2011, and your parents received Child Benefit, you most likely have a Child Trust Fund account
  2. Your parent or guardian may have received a voucher to use to open a CTF account for you or HMRC may have opened one on your behalf
  3. If you’re turning 18 from 1 September 2020, you can access and withdraw the money.
  4. If you’re age 16 or 17 you can take over responsibility for your CTF account from your parent or guardian, or you can choose to let them continue to manage it on your behalf.
  5. There are various options for what you can do with your money, including moving it into an ISA or another type of savings or investment account.
  6. If your parent or guardian does not have details of your CTF account you can ask HMRC who your CTF provider is by completing an online form here www.gov.uk/find-child-trust-fund.
  7. Once you get in contact with your provider, they’ll tell you how much you have in your CTF account.
  8. You’ll need your National Insurance number to access this form. If you don’t know your National Insurance number you can find out how to request it through the helpline here www.gov.uk/find-child-trust-fund
  9. You’ll also need a Government Gateway user ID. If you don’t already have this, it’s easy to set one up here www.gov.uk/find-child-trust-fund
  10. If you’re not able to contact your CTF provider immediately after your18th birthday you shouldn’t worry, they will keep your investments safe in a protected account until you tell them what you want to do with your money.

Over 700,000 accounts will mature each year for the next nine years. 

You can find out more online

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