HMRC has warned that approximately 758,000 people aged 18 to 23 have unclaimed Child Trust Funds, with an estimated £1.5 billion sitting in forgotten accounts. The average value of a Child Trust Fund is £2,200, according to multiple reports. HMRC urged young adults to check for unclaimed savings, noting that those born between 2002 and 2011 could each have about £2,200 that has not been claimed. This money is not a loan or benefit; it is the account holder's own savings, accrued through a government program, and it is tax-free.
Child Trust Funds were introduced by the Labour government in 2005 for children born between 1 September 2002 and 2 January 2011. 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 major media reports. If an account was not opened by a parent within 12 months, HMRC opened one on their behalf. The program was designed to help children save money for their future, and parents or guardians could add more money over time. Anyone born between September 1, 2002 and January 2, 2011 could have a savings account waiting to be claimed once they turn 18.
There are growing calls for funds to be automatically released to account holders as soon as they turn 21, according to experts. The Share Foundation has uncovered a significant geographical disparity in forgotten Child Trust Fund accounts, with young people in northern England disproportionately affected by unclaimed savings. The foundation's research highlights that many accounts remain dormant, often because parents opened them years ago but did not share the details with their children. Young adults who are now 18 may have had access to these funds for years but have not withdrawn any money.
HMRC is set to soon send letters to youngsters about their pots for the first time ever, as This is Money can reveal. Anyone aged 21 who has not yet claimed their money can expect to get a letter, HMRC said. The letter campaign aims to alert account holders to the existence of their funds and provide instructions on how to claim them. Many young people in the UK might have money waiting for them in an HMRC Child Trust Fund account, according to research. If parents contributed regularly, the amount could be much higher than the average £2,200. HMRC has issued warnings about savings accounts that many people do not know about, and a lot of these accounts are now considered dormant. The exact number of unclaimed accounts and the precise age range of holders remain uncertain, with some reports suggesting more than 750,000 forgotten Child Trust Funds are owned by those aged 15-24, a discrepancy that may affect outreach efforts. The timing of the letter campaign has not been confirmed, nor have specific actions to automatically release funds at age 21 been detailed.