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Martin Lewis: Aged 22 or under? Don't pay to trace lost Child Trust Fund cash – here's how to do it for FREE

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Emily White
Emily White
Senior News & Investigations Reporter
11 October 2024

MoneySavingExpert.com (MSE) founder Martin Lewis has issued a warning to steer clear of using third-parties that charge you to trace lost Child Trust Funds – you can do it yourself for FREE. MSE has seen evidence of one claims firm targeting young people on social media and charging £100s for its services. Here's what you need to know and how to avoid getting caught out.

Martin Lewis: 'Don't touch them, don't sniff them, don't smell them, don't go near them. This is easy to do yourself'

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Martin Lewis: Under 22? Check now for FREE (never pay) if you’ve hidden money in a Child Trust Fund

Martin: "This is an important warning for anybody aged under 22. You may have £2,000 in a Child Trust Fund that you don't know about, and you can get the money out for free.

"I've started to see adverts and videos on social media from firms trying to charge you to access your own money, or trying to get a cut of your savings to give you your money.

"Don't touch them, don't sniff them, don't smell them, don't go near them. This is easy to do yourself.

"I'm Martin Lewis from MoneySavingExpert.com and I'm going to talk you through how to do it right now.

"So first of all, the basics. If you're aged between 13 and 22, specifically 1 September 2002 to 2 January 2011, well, when you were born, you would have had a Child Trust Fund, which is effectively a tax-free savings or investment account.

"Now, your parents could put money in it, but everyone was also given a sum by the state to start it off. Normally £250, but in some cases £500. You can take the money out of your Child Trust Fund although in some cases, if you were active with it, you can convert it into what's called a Junior ISA too.

"You can take the money out of it and access the cash when you're aged 18, which many of you now are. And in fact, the stats show 670,000 people aged between 18 and 22 who have one of these have not touched the money, and many of them don't know about it. And the average amount in there? £2,212.

"So how do you trace and claim your Child Trust Fund? Well, first, if you know the firm, just contact them and it's easy. If you don't know the firm, there is a free tool on Gov.uk. So just go onto the government’s website, Gov.uk, and search 'Child Trust Fund'. All you will need is your National Insurance number and your date of birth – but I'm sure you know that – in order to be able to use the tracing service.

"It will reply within three weeks and then it'll tell you which bank, savings or investment provider your money is with, and then you are able to take your money out if you want.

"What you should actually do with it, if you don't need to use it straight away, lots of interesting choices there. You could put it in a top savings or investing account. You could put it inside a Cash ISA and move it into a Cash ISA. You could put it in a Lifetime ISA, which gives first-time buyers up to £1,000 a year boost on their savings as a deposit for their first home. Lots of ifs and buts on that; there's a full guide to that on MoneySavingExpert.com.

"So, why am I warning you about this? Well, I've been spurred to do it as we've started to see third-party claims firms, especially on TikTok, trying to get you to pay £350, or 25% of your savings value in order to access the money.

"But they are not doing anything that you can't do yourself. There is no, zero, zip, added value to using their services. And don't just take my word. HMRC, the Tax Office, is saying the same. It’s warned against it. It says there's no need to pay them. It can reduce what's received. Of course it can, they’re taking a 25% cut. And it may even make it take longer. Plus, you have to give them the same information that you'd put on Gov.uk.

"So if you see one of those ads or posts, ignore it. Don't sniff it, don't touch it, don't smell it, don't go near it. You don't need it. You can do it yourself. Watch back this video if you're not sure or more details on how to claim your Child Trust Fund for free on MoneySavingExpert.com. Spread the word, people."

You might have £100s in a Child Trust Fund without realising it

If you were born in the UK between 1 September 2002 and 2 January 2011, you would have had a Child Trust Fund (CTF) set up on your behalf – effectively a tax-free savings or investment account that parents and guardians could put money into.

Crucially, everyone was also given a sum by the state to start it off. This was normally £250, but in some cases could be £500. The money was set to be accessible when the child turned 18 – giving young people some cash to start their adult life.

According to the latest figures from HM Revenue and Customs (HMRC), there are 671,000 young people aged 18 to 22 who have unclaimed CTF accounts, worth on average £2,212 each. CTFs can become 'lost' if parents or guardians lose track of the account and its paperwork, for example.

Beware online ads offering to help you find your Child Trust Fund

You can reclaim lost CTFs for FREE yourself. But we've seen a claims firm called Turner Lewis Limited offering to trace accounts in adverts (see a screenshot example below) on social media platform TikTok, which is typically used by teens and young adults. What the ad doesn't mention is that the service will cost you 25% of your fund, capped at £350 plus VAT – so up to £420. We are reporting this to the Advertising Standards Authority.

Image showing Turner Lewis's TikTok advert which claims customers have 'nothing to lose by using its services'

Turner Lewis told us it only charges a fee if it locates a Child Trust Fund, adding that its fees are "reflective of the extensive work" it does. It added that the fact it charges a fee is clearly stated in its advertising and that it uses targeted paid advertising on TikTok "to reach those who need our services the most".

Another of our concerns was that the firm failed to mention in its adverts or on its website that Child Trust Funds can be reclaimed for free. However, after we put this to Turner Lewis, it has since updated the homepage of its website with this information and told us it would highlight it to any future clients.

It's worth noting that claims firms aren't illegal, and can even be helpful in more complex cases where you need extra support – but they tend to cost a fortune and you can easily do this yourself for free, as Martin points out below.

HMRC has also urged young people to avoid using third-party claims firms that charge a fee to trace lost Child Trust Funds. It's warned that using a third-party firm is likely to take longer and that you will still need to provide the same information to the claims firm that you'd need to complete the search yourself.

'My son nearly lost £333 from his Child Trust Fund after responding to a claims firm's TikTok ad'

Victoria Higginbottom, 51, from Surrey, told us her 19-year-old son, Markai Brown, took up the services of Turner Lewis Limited after seeing an advert on TikTok. Turner Lewis did locate Markai's Child Trust Fund. But once Markai received his savings, worth just over £1,111, Turner Lewis sent him an invoice for 25%, plus VAT – just over £333.

Victoria said: "Markai thought he was dealing with an official company linked to HMRC. But he started to receive multiple emails and phone calls from Turner Lewis and told me he felt like he was being rushed into signing up and that the terms weren't properly explained – he was out of his depth."

She added: "We're a low-income family and there was no way I could afford to pay that bill as a struggling single mum. Markai has just started college and desperately needs the money from his Child Trust Fund to use for living expenses. I just think it's outrageous."

Turner Lewis told us its adverts "clearly state its services are no-win, no-fee" and that its fees were clearly stated in emails sent to Markai prior to any phone calls. It did, however, agree to waive Markai's fee after MSE got in touch as it "appreciates the financial situation of Markai and his mother".

You can find and claim your Child Trust Fund for FREE via Gov.uk

If you already know your CTF provider, you can contact it directly.

If you don't know your provider, there is a FREE tool via Gov.uk to help you find it – there's absolutely no need to pay. You'll need to give your National Insurance number and date of birth as part of the process.

Once you’ve submitted the online form, you should get a response from HMRC within three weeks telling you which provider has your cash.

See our Reclaim your Child Trust Fund guide for full details.

MSE Email icon 11 February 2025

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