HMRC has issued a warning urging young adults to check for unclaimed Child Trust Fund accounts, with approximately 758,000 people aged 18-23 holding an average of £2,200 each in unclaimed savings, according to multiple reports. The warning comes as part of a broader effort to reunite young people with money that has been sitting untouched, often for years. According to multiple reports, the total amount unclaimed could run into billions of pounds, though the exact figure remains unknown. HMRC has not yet announced when it will begin sending letters to account holders, but the agency is encouraging proactive checks.
Child Trust Funds were introduced by the Labour government in 2005 for children born between 1 September 2002 and 2 January 2011, according to multiple reports. Each eligible child was given £250 from the government to launch the account, with an additional £250 for those from low-income families or in care, according to multiple reports. If an account was not opened by a parent within 12 months, HMRC opened one on their behalf, according to multiple reports. The program was designed to help children save money for their future, with parents or guardians able to add more money over time, according to research. The accounts were closed to new entrants in 2011, but existing accounts continue to grow.
Anyone born between September 1, 2002 and January 2, 2011 could have a savings account waiting to be claimed once they turn 18, according to HMRC. The money is not a loan or benefit; it is yours, saved through a government program, and it is tax-free, according to HMRC. HMRC warns that those born between 2002 and 2011 could each have about £2,200 that has not been claimed, according to HMRC. The Share Foundation is a charity helping reunite young people with their Child Trust Funds, according to multiple reports. To claim, individuals can use the government's online tool or contact HMRC directly.
Many families have moved, changed banks, or simply forgotten about old accounts, leading to unclaimed money, according to research. Parents often opened these accounts years ago but did not share the details with their kids; over time, papers were lost or forgotten, according to research. Young adults who are now 18 may have had access to these funds for years but have not withdrawn any, according to research. Young people in northern England are disproportionately affected by unclaimed savings, according to multiple reports. The reasons for this regional disparity are not fully understood, but it may be linked to higher rates of financial insecurity or lower awareness.
If your parents contributed regularly, the amount could be much higher than £2,200, according to research. HMRC issued warnings about savings accounts that many people do not know about; a lot of these accounts are now considered dormant, according to HMRC. The exact number of unclaimed accounts and the precise age range of account holders remain unclear, with some estimates suggesting 750,000 people aged 15-24 have unclaimed accounts. The discrepancy in the number and age range could affect public understanding of the scale of the issue and who is eligible. Individuals are advised to check online or contact HMRC to locate their accounts.