Hundreds of thousands of young people in the UK stand to claim nearly £1,980 on average from unclaimed Child Trust Funds (CTFs), as HMRC intensifies efforts to reunite them with their savings. Recent data shows £1.5 billion remains untouched across more than 750,000 accounts.
Government Launches Awareness Drive
The Government targets 21-year-olds with letters about their unclaimed CTFs and promotes the free ‘Find My Child Trust Fund’ service on GOV.UK. This campaign aims to ensure young adults access funds to kickstart their financial independence.
Economic Secretary to the Treasury, Lucy Rigby, stated: “Hundreds of thousands of young people in this country don’t know they have a CTF, let alone how to access it. Some will have a couple of thousand pounds sat there that would really help them as they begin adult life. I’m determined that those who have CTFs are made aware that they have this money. Together, we will ensure funds from these Child Trust Funds can be accessed by young people to help give them the best start to adult life.”
Expert Insights on Unclaimed Savings
Sarah Coles, head of personal finance at AJ Bell, highlights the irony: “Cash-strapped young adults could have around £2,000 sitting forgotten in a Child Trust Fund. At a time when the Government works to build a nation of investors, millions of young people invested from birth, yet hundreds of thousands remain unaware of their nest egg’s growth.”
She notes that parents often lost track of accounts, especially the 1.8 million opened by HMRC out of 6.3 million total. Coles urges action: “This nudge represents progress, but many young people overlook letters from HMRC. Once found, maturing CTFs can fund essentials or spark lifelong investing habits, showcasing investment potential.”
Parents or guardians can also trace funds for children under 18 using the GOV.UK tool. Since 2015, transfers to Junior ISAs offer further options.
What Are Child Trust Funds?
Introduced in 2005, CTFs provided every child born between September 1, 2002, and January 2, 2011, with an initial government deposit to build a financial stake by age 18. Amounts varied by birth date, with accounts as stakeholder (regulated investments) or non-stakeholder (flexible options). HMRC assigned stakeholder CTFs if parents missed the 12-month deadline.
How to Find Your CTF
Young people aged 18+ need only their National Insurance number and birth date to use the GOV.UK tracer. This simple step unlocks potentially life-changing savings.
