Parliamentary Event calling for Automatic Release at 21 for HMRC-allocated Child Trust Funds

If you could forthwith provide 150,000 low-income young people across the UK with over £400 million at no cost to Government, would you take action?

At a time when the Government is talking about economic growth, investment and creating opportunities for the next generation, there is another financial issue that deserves attention: the billions of pounds already sitting in Child Trust Funds belonging to young people across the UK.

Gavin Oldham asked all of those in attendance at the parliamentary event on 15th July at the Attlee Suite, Portcullis House, Westminster, to take action while asking Andy Burnham to prioritise automatic delivery at 21 of the benefit of HMRC-allocated Child Trust Funds - which are already held in the young people's names.

The Share Foundation has been asking for an ‘Automatic Release at 21’ process to be introduced for the past two years [see the diagram below]; Having taken legal advice, it is clear that there are no insuperable legal, data or operational issues preventing this process - on the contrary, it is the duty of Government not to discriminate against the most disadvantaged.

Against this backdrop of economic uncertainty, ensuring young people can access savings that were set aside for them is more important than ever. For many young people, particularly those from disadvantaged backgrounds, a Child Trust Fund may represent one of the first significant financial assets they have.

The discussion also comes at a time when there is growing recognition that solutions need to reach people and communities where they are. That was reflected in our Parliamentary event, where MPs were brought together to consider how we can make sure young people – particularly those who are most disadvantaged – are not left behind when it comes to accessing the money that belongs to them.

A Shared Commitment

to Young People’s Financial Futures

Speaking alongside Gavin, The Share Foundation we’re very grateful to Bambos Charalambous for sponsoring the event about delivering HMRC-allocated Child Trust Funds to their young adult owners, and for the support of Lord Blunkett and Ruth Kelly, together with many parliamentarians from both Houses.

During the event, Gavin explained that “With 71% of Child Trust Fund owners now having reached adulthood, and with half of these being aged between 21 and 23, the emphasis now needs to be placed on delivery. This is why The Share Foundation has been pushing so hard for the ‘Automatic Release at 21’ process for HMRC-allocated accounts to be introduced, over the past two years. They estimate that the system would immediately release £600 million-worth of accounts for nearly 300,000 young people, two-thirds of which would go to low-income young people, in order to transform their lives.

The Share Foundation estimates that 62.7% of all unclaimed CTFs are HMRC-allocated, compared with 28.4% at issue. The Automatic Release process would allow three years for a young person to claim or manage their account, after which the majority of unclaimed accounts would be automatically delivered. After the initial catch-up, we estimate that it would release a further £0.25 billion worth each year until 2031.”

You can see Gavin’s presentation here: