The HM Revenue and Customs (HMRC) is urging individuals earning under £60,000 per year to check whether they qualify for free financial support worth up to £2,200. The support is available through two main schemes—Child Benefit and unclaimed Child Trust Funds (CTFs)—but thousands of eligible people have yet to claim their money.
With many households struggling amid the ongoing cost-of-living crisis, this initiative aims to help families and young adults access financial aid that could make a significant difference.
Who Can Benefit?
HMRC has identified two main groups that may be missing out on crucial financial support:
- Parents earning under £60,000 who may be eligible for Child Benefit but have not yet claimed it.
- Young adults aged 18-22 who have unclaimed savings in Child Trust Funds (CTFs), which were set up by the government for children born between 2002 and 2011.
1. Child Benefit – Up to £1,887 Per Year
What is Child Benefit?
Child Benefit is a government payment designed to help parents with the cost of raising children. As of 2024, families can receive:
- £21.80 per week for the first child (£1,133.60 per year)
- £14.45 per week for each additional child (£753.40 per year per child)
For a family with two children, this equates to £1,887 annually.
Who is Eligible?
- Parents responsible for a child under 16, or under 20 if they are in approved education or training.
- Families where neither parent earns over £50,000 per year can claim the full amount.
- Parents earning between £50,000 and £60,000 can still claim but will be subject to the High Income Child Benefit Charge (HICBC), which reduces the total benefit.
- Households earning over £60,000 may need to repay the full benefit amount through tax.
How to Claim?
- New applicants: Parents can apply for Child Benefit as soon as they register their child’s birth or if a child moves in with them.
- Claims can be made online via the official HMRC Child Benefit website.
- If you previously opted out due to income but now earn under £60,000, you can contact the Child Benefit Office to reinstate your payments.
2. Unclaimed Child Trust Funds – Up to £2,200
What is a Child Trust Fund (CTF)?
Child Trust Funds were tax-free savings accounts set up for children born between 1 September 2002 and 2 January 2011. The government initially deposited £250 into each account (or £500 for low-income families), with some children receiving additional contributions at age seven.
Why Are So Many Accounts Unclaimed?
Many young adults who turned 18 or older have not claimed their funds because they may be unaware of them. HMRC estimates that over 670,000 CTFs remain unclaimed, with an average balance of £2,200 per account.
How to Access Your Money
- If you’re unsure where your Child Trust Fund is held, use HMRC’s CTF finding tool.
- You’ll need your National Insurance number and personal details to locate the account.
- Once found, contact your CTF provider to access or transfer the funds.
Why You Should Act Now
- Avoid Missing Out – Thousands of eligible individuals haven’t claimed their benefits yet.
- No Deadline for CTFs, but Immediate Access is Possible – You can access your CTF at any time after turning 18, but it’s best to check early.
- Financial Support in Tough Times – With the cost of living rising, claiming these funds can help ease financial burdens.
Important Considerations
- High-Income Child Benefit Charge (HICBC): If you earn between £50,000 and £60,000, you may need to repay part of your Child Benefit through taxes. Consider whether claiming is financially beneficial.
- CTF Tax Benefits: Money in a CTF is tax-free, but once withdrawn, normal tax rules apply.
Where to Get More Information
- Child Benefit Information: www.gov.uk/child-benefit
- Find Your Child Trust Fund: www.gov.uk/child-trust-funds
- HMRC Official Website: www.gov.uk/hmrc
- Citizens Advice Bureau: www.citizensadvice.org.uk
Final Thoughts
The HMRC is encouraging thousands of eligible individuals to take advantage of these government-backed financial supports. Whether you are a parent eligible for Child Benefit or a young adult with an unclaimed Child Trust Fund, now is the time to act and claim the money you are entitled to.
By opting in, you can receive up to £2,200 in financial support to help secure your financial future. Don’t miss out—check your eligibility and claim today!
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
