Introduction
Thousands of young adults across the UK are being contacted by HM Revenue and Customs (HMRC) to inform them about unclaimed savings held in Child Trust Fund (CTF) accounts. The average value of these forgotten accounts stands at £2,200 per person. The initiative comes as HMRC seeks to raise awareness and improve access to government-backed savings originally set up for children born between 2002 and 2011. Despite reaching maturity, a significant proportion of these accounts remain unclaimed, prompting the latest nationwide notification effort.
Overview of Child Trust Fund Scheme
The Child Trust Fund was introduced by the government to encourage tax-free savings for all children born in the UK from September 2002 to January 2011. Each eligible child received an initial deposit from the government, with the opportunity for parents and guardians to make further contributions. The funds were locked until the child’s eighteenth birthday, after which the account holder could access the balance. Millions of accounts were opened during the scheme's lifespan, embedding a culture of saving from an early age.
Scope of Unclaimed Funds
Recent data indicate that as of April 2026, over 750,000 CTF accounts remain unclaimed. According to official figures, the total value held in these dormant accounts exceeds £1.6 billion. Many young people are reportedly unaware that such an account exists in their name. While the average balance available is around £2,200, individual amounts may vary, depending on top-up contributions and account performance over time.
HMRC's Nationwide Notification
HMRC has commenced sending letters to 21-year-olds whose CTFs have not yet been accessed, aiming to prompt account holders to claim their funds. The timing coincides with the expectation that recipients are likely to have started their adult lives, such as entering employment or higher education, improving the likelihood of engagement. HMRC confirmed that those aged 21 and over are being specifically targeted as part of efforts to reduce the number of dormant accounts.
Government Priorities and Statements
Government officials have highlighted the importance of ensuring that eligible young people receive the financial support available to them. Economic Secretary to the Treasury Lucy Rigby stated, “Hundreds of thousands are unaware they have a Child Trust Fund, some containing a substantial sum that could benefit them as they begin their adult life.” She reiterated the government's commitment to raising awareness and facilitating access to these funds, expressing determination to ensure no eligible person misses out on their savings.
Public Advice on Claiming Funds
Financial experts have urged individuals who receive notification from HMRC to contact their Child Trust Fund provider directly, rather than the tax authority. It is also advised that claimants use official channels and avoid third-party tracing companies, some of which may charge fees for services that are otherwise freely available. Guidance states that account holders can independently locate and claim their funds using details provided by official websites, ensuring a secure and cost-free process.
Final Summary
HMRC’s outreach to reclaim unclaimed Child Trust Fund accounts reflects a continued emphasis on supporting young people's financial wellbeing in the UK. The effort aims to redistribute dormant savings and promote greater awareness of financial entitlements established in childhood. As thousands respond to HMRC’s letters, the broader economic impact could be significant for individual recipients. For those seeking further guidance on claiming savings or managing personal finances, dedicated resources such as the Pie app offer accessible, non-intrusive support tools.
