UK Young Adults Aged 18–23 Could Claim Thousands of Pounds! Prime Minister Cracks Down on Immigration and Pushes Education Reforms! Packaging Tax May Push Food Inflation Up by Another 0.5%!
- TBA
- Oct 7
- 5 min read
HMRC urges 758,000 adults to check if they have unclaimed child trust fund worth thousands
The UK tax authority, HMRC, recently reminded the public that around 758,000 young adults may not yet have claimed their Child Trust Fund (CTF), with an average balance of about £2,240.
The Child Trust Fund is a long-term, tax-free savings account set up by the government for children born between 1 September 2002 and 2 January 2011. The government initially deposited £250 into each account, with an additional £250 for children from low-income families or those in government care. At age 16, the child can take control of the account, and after turning 18, they can withdraw the funds. Over time, most accounts have grown significantly due to accumulated interest.
Currently, many young people or their guardians have forgotten about these accounts. HMRC Deputy Chief Executive Angela MacDonald said: “If you’re aged between 18 and 23, you should go to gov.uk and search for ‘find my child trust fund’ to check whether you have a ‘hidden savings pot’ waiting for you.”
HMRC also warned against using paid third-party services, as some have charged as much as £350 or up to 25% of the account’s value for assistance in locating these funds.
Experts recommend that once the funds are received, young adults can either transfer them into an Adult ISA to continue saving or withdraw them for immediate use. If the money is transferred into an Adult ISA, the matured amount will not count toward the £20,000 annual ISA contribution limit.
The Child Trust Fund was launched in 2005 by the Labour government but was discontinued in 2011 by the Conservative government and replaced by the Junior ISA. Unlike the Child Trust Fund, the Junior ISA does not include government contributions.
Starmer's Labour conference speech focuses on immigration policy and education reform
UK Prime Minister and Labour leader Keir Starmer delivered a keynote speech at last week’s Labour Party Conference in Liverpool, responding to the rising popularity of Reform UK and its radical proposal to abolish permanent residency. He called for unity within the party and set out his vision for the country, with immigration policy and education reform emerging as key issues.
Strong Response to Reform UK
The central theme of the Labour Party Conference was confronting Reform UK, which is currently leading in national polls. In his speech, Starmer stressed that the country faces a choice between “renewal or decline.” He singled out Reform UK leader Nigel Farage, accusing him of never saying anything positive about Britain: “He doesn’t like Britain, and he doesn’t believe in Britain.”
By contrast, the traditional rival Conservative Party was barely mentioned. Starmer even joked, “The Conservatives — do you remember them?” prompting laughter from the audience.
Renewed Focus on Tighter Immigration Policies
Although opposing Reform UK’s proposal to abolish permanent residency, the Labour Party has not softened its stance on tightening immigration. The plan to maintain the ten-year route to permanent residency remains unchanged. In addition, the Home Secretary recently stated that future permanent residency applications may include new criteria assessing social contributions, such as community volunteering. However, a fast-track route will be offered to highly skilled individuals or those who have made outstanding contributions.
These potential tightening measures — still under discussion — have caused unease within the Labour Party. Starmer acknowledged these internal divisions but emphasized that the government must make decisions that are “not necessarily comfortable for everyone.”
Apprenticeships and Education Reform
On education, Starmer announced the end of the current goal for “50% of young people to attend university.” Instead, the new target is for “two-thirds of young people to either attend university or take part in ‘gold standard’ apprenticeships.” He also pledged investment in new technical colleges and skills training programs.
Autumn Budget and Tax Debate
The Treasury is set to announce the Autumn Budget on November 26. Economists warn that a combination of reversed welfare policies, rising borrowing costs, and downgraded productivity forecasts from the Office for Budget Responsibility (OBR) could leave the UK facing a £30 billion gap under current fiscal rules.
Reflecting on the £40 billion tax increases in the previous budget, Starmer said that “tough decisions will continue,” confirming the likelihood of further tax rises.
Packaging tax will push up prices for consumers, food inflation may rise another 0.5%
Starting in 2025, the UK government will officially implement the Extended Producer Responsibility (EPR) system, also known as the packaging tax, which requires companies that produce or import packaging to bear the costs of collecting and processing packaging waste.
The British Retail Consortium (BRC) has warned that this new system could push up retail prices, leading to further increases in food costs and adding pressure on consumers.
According to a BRC survey of major retailers, more than 80% of the new tax costs are expected to be passed on to consumers. The new regulation requires businesses to submit up-to-date data on their packaging use by October 1, which is expected to impose significant financial pressure on both the retail sector and households.
The BRC pointed out that in last year’s budget, retailers already faced an additional £5 billion in labour costs due to higher National Insurance contributions and increases in the minimum wage. The introduction of the EPR packaging tax will further raise industry expenses. The Bank of England estimates that this policy alone could increase food inflation by 0.5%.
Beyond financial costs, 85% of retailers reported that the new tax has significantly increased administrative and compliance burdens, as companies must report the types and quantities of packaging materials they use. The tax applies to all businesses that produce and place packaging on the market which is ultimately discarded by households, with fees calculated based on the material type and amount of packaging used.
Encirc, one of the UK’s largest glass bottle manufacturers, criticized the policy as “a case of shooting oneself in the foot.” Because the tax is linked to packaging weight, glass bottles for alcoholic beverages are among the most affected: the price of a standard bottle of wine is expected to rise by 9 pence, a 330ml beer bottle by around 4 pence, and a spirit bottle by 11 pence.
The goal of the EPR system is to encourage businesses to reduce unnecessary packaging, increase recyclable design, and phase out materials that are difficult to recycle, thereby ultimately lowering costs for consumers.
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