HMRC reports that 758,000 Child Trust Fund accounts remain unclaimed, each holding an average of £2,242. The total unclaimed amount is approximately £1.7 billion, with anyone born between September 1, 2002 and January 2, 2011 potentially eligible.
Hundreds of thousands of young people are being urged to track down a forgotten savings pot worth more than £2,200. HM Revenue and Customs (HMRC) has revealed that 758,000 Child Trust Fund accounts remain unclaimed, each holding an average of £2,242.
This means approximately £1.7billion is sitting untouched. Officials are now stepping up efforts to reunite young adults in the UK with the money, warning that many may be unaware it even exists.
Angela MacDonald, HMRC’s second permanent secretary, said: “If you’re between 18 and 23, you could be sat on a savings pay out and not even realise it.” For money-saving tips, sign up to our Money newsletter here
Who can claim it
Anyone born between September 1, 2002 and January 2, 2011 is likely to have a Child Trust Fund if Child Benefit was claimed for them. In many cases, parents were issued with a voucher to set up the account – but if they failed to take action, HMRC opened one automatically, meaning thousands don’t know where their savings are kept, reports the Mirror.
The accounts were set up to give every child a financial boost when they reached adulthood, with at least £250 paid in by the UK Government at birth.
The ‘forgotten fund’ problem
Young people can take control of their account at 16, but the funds only become accessible at 18, when the account matures.
At that point, they can:
- Withdraw the cash.
- Transfer it into an ISA.
- Reinvest it elsewhere.
However, many haven’t done so – often because they don’t know who their provider is or that the account even exists.
The essential things you need to know HMRC has issued a checklist to assist young people in locating their funds and understanding their available options:
- If you were born between 2002 and 2011, you probably have an account
- Parents may have opened it – or HMRC may have done so for you
- You can take control at 16
- You can access the money at 18
- You can move the funds into an ISA or savings account
- Your provider can explain your options
- Ask your parents first for account details, if they don’t know, use the free GOV.UK locator tool here.
- You’ll need your National Insurance number
- Your money remains safe until you claim it
How to locate it
The UK Government states it requires just five minutes to submit a request using the official online tool here, with most individuals receiving a response within three weeks.
Over 563,000 searches were conducted in the past year alone, demonstrating increased awareness – whilst also underlining how many accounts remain unclaimed.
Why it’s important
Experts suggest the funds could provide a vital financial lifeline at a pivotal stage in life – assisting with rent, university expenses or savings.
Shelley Doorey-Williams, chief executive of the London Foundation for Banking and Finance, said: “With an estimated average of £2,242 waiting in unclaimed accounts, this is real money at a crucial time.”
With the scheme now closed and superseded by Junior ISAs, the priority is ensuring existing funds reach their rightful owners.
