Introduction
HM Revenue and Customs (HMRC) has issued a new call to action for young adults to check whether they are the holders of unclaimed Child Trust Fund (CTF) accounts. According to recent HMRC figures, over 758,000 accounts, belonging to people aged 18 to 23, remain unclaimed with an average balance of approximately £2,242 each.
The accounts, established for children born between 1 September 2002 and 2 January 2011, were intended to provide a financial foundation as they reached adulthood. Many account holders, HMRC warns, may be unaware of their entitlement or may have lost track of their accounts, as the scheme closed to new applicants in 2011 but funds continue to accrue interest.
HMRC calls for action on unclaimed savings
The government department has highlighted that the large number of unclaimed accounts represents significant funds that could benefit hundreds of thousands of young adults. The accounts, now matured, are held by banks, building societies and authorised savings providers, not by the government directly.
Angela MacDonald, HMRC’s second permanent secretary and deputy chief executive, stated, 'If you are between 18 and 23, you could be sat on a savings payout and not even realise it.' She urged young adults to search 'find my Child Trust Fund' on GOV.UK to track down their accounts.
The Child Trust Fund scheme explained
The Child Trust Fund was introduced for children born during the qualifying period to encourage long-term, tax-free savings. At account opening, each eligible child received a government payment of at least £250, with some children from certain households receiving additional funds.
Family, friends and guardians could subsequently contribute up to £9,000 each tax year, enabling potential savings growth over time, with all investment gains remaining tax-free.
Eligibility and maturation of accounts
The accounts were designed to mature when the account holder reached 18, at which point the funds could be withdrawn or transferred into an adult Individual Savings Account (ISA). From age 16, account holders could manage their CTFs,
but withdrawals remained restricted until legal adulthood.Any remaining funds continue to accrue interest post-maturity and remain accessible exclusively to the named beneficiary.
How to locate and claim Child Trust Funds
HMRC has streamlined the search process for eligible individuals seeking to claim their matured accounts. By providing their National Insurance number and date of birth via the GOV.UK online service, young adults can determine the details of their CTF provider.
HMRC reports that the application process typically requires five minutes with most results returned within three weeks. The department recommends that those unsure of their account status ask parents or guardians for any original documentation.
Impact of unclaimed accounts for young people
Finance experts suggest these unclaimed sums could make a considerable difference for young adults during a period of rising living costs.Shelley Doorey-Williams, chief executive at the London Foundation for Banking & Finance, remarked,
'With an estimated average of £2,242 waiting in unclaimed accounts, this is real money at a crucial time for young people.' She emphasised that accessing these funds could help support individuals at the beginning of their financial independence.
Final Summary
The revelation that over 750,000 Child Trust Fund accounts remain untouched underscores a significant opportunity for young adults to benefit from funds intended to support their futures. By encouraging claimants to access their savings, HMRC is aiming to help those aged 18 to 23 make full use of an initiative established to foster financial stability.
As personal finances become increasingly important, any young person uncertain about their entitlement is advised to check the official service or consult with family for account information. For those looking to stay informed on financial rights and opportunities, digital solutions such as the Pie app offer a straightforward way to keep track of developments.
