Every child born in the UK between 2002 and 2011 received an initial Child Trust Fund (CTF) payment of £250 from the then Labour Government to help them start saving towards their futures, before the CTF scheme was abolished by the later conservative/liberal coalition government.
People turning 18 from September 2020 will be able to withdraw money from their CTF for the first time. The savings pots could now be worth £1,000 or more if parents added contributions. Even those born into low-income families or into care, are likely to receive a windfall of around £1,500 the BBC reported.
Over the years, officials have lost track of more than a million account holders as they moved residences or changed addresses, stranding 2 billion pounds in funds, according to The Share Foundation, a charity that’s working to help sort out the mess.
Many conservatives have argued the “baby bonds” initiative amounted to a universal state handout that would be a waste of money and opposed a great Labour policy that the tories and libdems scrapped.
If you are turning 18 or if you have friends who are, then let them know you need to chase this up for yourself or the government may claw it back in and spend your money on other things. Friends don’t let friends give £1000 to Rishi Sunak.
If you turned 18 in September or will soon, and didn’t know about your CTF pot, check www.gov.uk/child-trust-funds. You may be in for a pleasant tax-free surprise courtesy of a Labour Government. Let your friends know too.
If you have claimed your child trust fund back and are willing to tell us what you have spent it on we would really like to hear from you.
We would like to interview you to show the positive impact this Labour policy has had on real peoples’ lives even 19 years after this Labour scheme started. Email us here.