THE assembly member for the Vale of Clwyd has urged parents and teenagers about to turn 18 to check they have access to the trust funds set up when they were born.
AM Ann Jones said that in some cases the Child Trust Fund accounts, which mature in autumn and may contain around £1,000, could be lost after the UK Government scrapped the scheme.
The long-term tax-free scheme was set up by the former UK Government in 2002, with children born after September 1, 2002 granted an initial payment of at least £250. It was aimed to boost savings for children, with those from low income families receiving an additional £250.
The scheme was boosted in autumn 2009 with an additional top-up of £50 for all children in Wales, and a payment of £100 to children living in low income households as they began primary school.
The scheme was scrapped by the UK Government in 2011 with the first wave of child trust funds set to mature in September 2020, with access to savings for all children born in 2002.
Mrs Jones, Welsh Labour AM, said: “It’s crucial that the current UK Government plays their part as these young people make plans for their future. Many people won’t know that they have these accounts because the UK Government hasn’t promoted them.
“These funds offer an opportunity for young people to re-invest and save further or cover immediate costs, at 18 years of age they face some of their most important life decisions. They should face no barrier in accessing the savings that they’re entitled to.”
Welsh Government finance minister Rebecca Evans has written to the UK Treasury demanding all young people in Wales are linked to their accounts.
“The funds committed by previous UK governments were investments in our children’s future,” she said. “Whether young people choose to re-invest that money and save for the future or use it to meet immediate costs to help with their next steps at this pivotal age, they should face no barriers to accessing these savings.”
For more information on how to access the funds, contact Ann Jones’ office or visit https://www.gov.uk/child-trust-funds
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