Latest news with #ChildTrustFunds
Scottish Sun
08-07-2025
- Business
- Scottish Sun
Exact amount Universal Credit claimants can receive before payments STOPPED
Read on to find out whether you could be affected NOT TO YOUR BENEFIT Exact amount Universal Credit claimants can receive before payments STOPPED MILLIONS of households in the UK rely on Universal Credit to help with their day-to-day living costs. However, many people may not be aware that certain life changes can have a huge impact on your eligibility for the benefit - and could lead to payments being reduced or even stopped altogether. 1 Many people may not be aware that certain life changes can have a huge impact on your eligibility for Universal Credit Credit: Alamy If you receive a lump sum of money through inheritance, premium bonds, or a lottery or other cash prize, you may find yourself cut off from your benefits - even if you still need them going forward. Other payments such as redundancy payouts, life insurance and pension lump sums, divorce settlements and compensation payouts can also affect your benefits. This is because Universal Credit is one of several state benefits that are means tested, meaning they are based on how much money you have in savings and investments. Which benefits are affected by savings? HERE are all the benefits affected by savings Universal Credit Pension Credit Council Tax Support Housing Benefit Hargreaves Lansdown personal finance expert Sarah Coles says it's crucial to tell the Department for Work and Pensions (DWP) if you're expecting to receive a lump sum that may take you over the threshold. 'If your inheritance takes your total savings and investments to more than £6,000, it won't affect your eligibility for Universal Credit. "If it takes you over £6,000 but to less than £16,000, it will mean you get less, but you will still be eligible for a payment. If it takes you over £16,000 you won't get any Universal Credit. "If you're affected, it's key to tell the government as soon as possible, so you don't receive any payments you're not entitled to." How much can I have in savings to claim Universal Credit? According to the maximum amount of savings you can have to qualify for Universal Credit is £16,000. Therefore, if you receive a sum of money that takes you over this threshold, you are likely to see your benefits stopped completely. If you have £6,000 or less in your bank account, this will not affect your Universal Credit claim. I lost 'everything' when UC stopped my £4.3k-month payment... now I've been sacked from my new job If you have between £6,000 and £16,000, your payments will be reduced. For every £250 you have between £6,000 and £16,000, your payments will decrease by £4.35. It's also worth noting that if you live with a partner, their savings and investments will also be included in this limit. However, anything in your child's name, such as children's savings accounts and Child Trust Funds, will not count. What if I'm due to get inheritance? If you're due to get inheritance, or expecting any change in your money, savings and investments, you must inform the DWP. If you fail to tell the Government of any changes that may affect your benefits, you could end up overpaying your Universal Credit, and this extra money will be deducted from your future payments until it is repaid in full. AJ Bell savings expert Charlene Young also stresses that you can't opt out of receiving inheritance in order to keep your benefits. "The rules mean that refusing the inheritance cash or try to give it away to keep you under the limit won't work," she told The Sun. You also cannot knowingly reduce your money, savings and investments. If the DWP decides you have deliberately reduced your money, your savings will be treated as though you still have it in your account. You can also be prosecuted for fraud or fined for doing so, or for giving false information about your savings and investments. However, if you have used your savings to pay off debt or buy essential items, this will not count as knowingly reducing your money. What if I'm writing a will? If you're planning on leaving inheritance to a loved one but are worried about them losing their benefits, there are steps you can take to prevent this. Lawson-West Solicitors advises people to set up a trust for their inheritance. "A discretionary trust can be created to protect funds passing directly to the person on benefits. "It can also be used to provide for the person receiving benefits in other ways, such as providing them rent-free accommodation, that will not affect their benefits," Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
Daily Mirror
07-07-2025
- Business
- Daily Mirror
HMRC warns anyone born on these dates could be owed £2,200 in unclaimed cash
If the parent didn't open a Child Trust Fund, then HMRC would have opened one on behalf of the child - this means there are thousands of young people that may not realise they have one HMRC is urging parents to check if their child has a forgotten savings account worth an average of £2,000. Child Trust Funds were saving accounts given to children born between September 1, 2002 and January 2, 2011. Each child was given a voucher worth £250, or £500 for those from lower income families to start the account. Families could then add up to £9,000 a year into a Child Trust Fund. If the parent didn't open a Child Trust Fund, then HMRC would have opened one on behalf of the child - this means there are thousands of young people that may not realise they have one of these accounts. Latest figures from HMRC show more than 670,000 people aged 18 to 22 have yet to claim their Child Trust Fund. On average, each account is worth £2,212. In a post on X, HMRC said: "If your child is between 18 and 22, they can cash in their #ChildTrustFund. The average amount claimed is £2,200." You can't open a new Child Trust Fund but you can continue to pay into an existing account. It is only possible to access a Child Trust Fund once the child turns 18. How to fin If you know the name of your Child Trust Fund provider, you can contact it directly to find out more about your account. If you've lost track of your account, you can ask HMRC to help you locate it by filling out a form on You can ask HMRC to find a Child Trust Fund if you're a parent or guardian of a child under 18, or if you're 16 or over and looking for your own account. You will need your National Insurance number and Government Gateway - this is free to create - to fill out the online form. Once you've entered the right information, HMRC should tell you the name of the Child Trust Fund provider within three weeks. You can also request details by post by writing to: Charities, Savings and International 1, HMRC, BX9 1AU. Try to include as many details as possible, such as the full name, date of birth and address of the account holder, plus their National Insurance number. In a comment published last November, Angela MacDonald, HMRC Second Permanent Secretary and Deputy Chief Executive, said: 'Thousands of Child Trust Fund accounts are sitting unclaimed – we want to reunite young people with their money and we're making the process as simple as possible. 'You don't need to pay anyone to find your Child Trust Fund for you, locate yours today by searching 'find your Child Trust Fund' on
Scottish Sun
04-07-2025
- Business
- Scottish Sun
Parents need to check for lost bank account with £2,200 unclaimed cash, says HMRC
Plus, we've explained what to do with the money CASH IN Parents need to check for lost bank account with £2,200 unclaimed cash, says HMRC Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) HUNDREDS of thousands of young people could be missing out on £2,200 sitting in forgotten savings accounts, according to HMRC. These accounts, known as Child Trust Funds, were set up for every child born between September 2002 and January 2011. Sign up for Scottish Sun newsletter Sign up 1 Once you know who the provider is, you can contact them to withdraw or transfer the money Credit: Getty A staggering £1.4billion belonging to 671,000 young people is waiting to be claimed, but many don't know these accounts exist or that they can access the money. HMRC said the average savings pot is worth £2,212. It is now urging parents to check if their children are eligible. In a post on X, they said: "If your child is between 18 and 22, they can cash in their #ChildTrustFund. The average amount claimed is £2,200." Parents can check for Child Trust Funds on the HMRC website at You need to be over 16 or a parent to use the service. To check for your child, you'll need their full name, address, and date of birth. To check for yourself, you'll need your name, address, date of birth, and National Insurance number. The tool will tell you which provider holds the Child Trust Fund, but it won't show how much money is in the account. Once you've filled in the form, HMRC will send you a letter with the details. If you apply online, you should get this within three weeks. Postal applications may take a bit longer. If you don't hear back within six weeks, you should write to HMRC to follow up. Once you know who the provider is, you can contact them to withdraw or transfer the money. What are Child Trust Funds? CHILD Trust Funds are tax-free savings accounts that were set up by the Government for children born between September 2002 and January 2011. The Government paid £250 into each account, or £500 for children from low-income families. Another payment was made when the child turned seven, depending on their family's financial situation. In 2010, payments were reduced to £50 for well-off families and £100 for lower-income households. The scheme was scrapped in 2011 and replaced by Junior ISAs. Many parents stopped adding money to the accounts, and they were forgotten. The funds are held by banks, building societies, and other savings providers - not by the Government. Young people can take control of their account at 16 but can only withdraw the money when they turn 18. What can I do with the cash? Most people transfer the money into a bank account, invest it, or move it into an ISA. You can ask your Child Trust Fund provider to pay the money directly into your bank account by providing your bank details. If you'd prefer to invest the money, you can transfer it into an ISA for tax-free savings. If you transfer money from a Child Trust Fund into an adult ISA when it matures, it won't count towards your £20,000 annual ISA limit for over-18s. For those under 18, it's often better to move the money into a Junior ISA. Junior ISAs usually have lower fees and more investment options, according to AJ Bell. The money will stay locked until you turn 18, but you'll still get the tax-free benefits of an ISA. You can transfer the full amount from the Child Trust Fund into a Junior ISA and still add up to £9,000 more in the same tax year.
Leader Live
09-06-2025
- Business
- Leader Live
Wrexham case as extent of unclaimed Child Trust Funds revealed
Almost half (46.1%) of that belongs to those from low-income backgrounds who may need the money most. As of the end of May, nearly 35,000 young people across the country are unaware of their accounts and don't have access to what is rightfully theirs, according to figures from The Share Foundation. The data comes as child poverty in Wales is set to reach its highest rate in 30 years, with the Joseph Rowntree Foundation warning that more than 34% of children could be living in low-income families by the end of the decade. The Share Foundation, a registered charity that runs Junior ISA and Child Trust Fund schemes for young people in care throughout the UK on behalf of the Department for Education, is calling for the government to introduce automatic release of HMRC-allocated Child Trust Fund money when recipients turn 21. Under the proposal, countersigned by former Minister Ruth Kelly and parliamentarians from both Houses, account providers would be required to close and pay out proceeds via Government National Insurance channels for all unclaimed HMRC-allocated matured Child Trust Funds. 'Child poverty is becoming one of the big issues of our time,' commented Gavin Oldham OBE, Chair of Trustees at The Share Foundation. 'We need to break the cycle of deprivation which is why, over the past 12 years, we have been committed to establishing starter capital accounts for young people in care and helping young people from low-income backgrounds access Child Trust Funds they never even knew existed. "These initiatives are delivering positive outcomes exactly when families need them most.' To date, The Share Foundation has matched more than 85,000 young people with their Child Trust Funds, recovering over £165 million for young adult account owners through its free search facility developed with HMRC and Child Trust Fund account providers. The charity's mission is to encourage and facilitate inter-generational rebalancing by providing young people from disadvantaged backgrounds with both material resources and life skills knowledge to achieve their potential in adult life. TOP STORIES TODAY One of those who has discovered that he was entitled to the funds was Corey Polley from Wrexham. The 20-year-old has been self-employed for the last three years, doing timber framing. About two years ago, he found out about the Child Trust Fund through a family member. He used the Share Foundation website to see where his fund was held, a process which took 'about a week'. He claimed around £800 which has paid for his tools which was really important for him in his job, as otherwise it would have been harder for him to progress his career with the tools he had before. He has since told his friends who have also claimed their money. Corey said: 'Finding out about this money has been a massive help. I had no idea it even existed and it came at the perfect time when I was starting out in my career. "So many young people like me still don't know the child trust fund exists, so The Share Foundation's proposal for young people to get their fund automatically paid when they turn 21 makes a lot of sense. It could give other young people the same head start I got.'
South Wales Argus
03-06-2025
- Business
- South Wales Argus
£69m unclaimed Child Trust Funds in Wales, charity says
In Wales alone, £69 million remains untouched in HMRC-allocated Child Trust Funds (CTFs), according to The Share Foundation. Nearly half of these accounts (46.1 per cent) belong to young people from low-income backgrounds. The Share Foundation is calling for automatic payments of these funds to eligible account holders once they turn 21. Gavin Oldham, chairman of trustees at The Share Foundation, said: "Child poverty is becoming one of the big issues of our time. "We need to break the cycle of deprivation which is why, over the past 12 years, we have been committed to establishing starter capital accounts for young people in care and helping young people from low-income backgrounds access Child Trust Funds they never even knew existed. "These initiatives are delivering positive outcomes exactly when families need them most." The charity has already helped more than 85,000 young people access at least £165 million in matured CTFs.
