What you need to know...
Thousands of young adults across the United Kingdom are being contacted by HM Revenue and Customs (HMRC) regarding forgotten Child Trust Fund (CTF) accounts, following a new government campaign launched on 23 April.
The initiative aims to alert 21-year-olds who may be unaware that they are entitled to unclaimed savings, typically averaging £2,200 per account. With more than 750,000 Child Trust Fund accounts still unclaimed, HMRC seeks to help eligible individuals access these funds as they begin their adult life.
Overview of Child Trust Funds
Child Trust Funds were introduced by the government for children born in the UK between 1 September 2002 and 2 January 2011. An initial tax-free sum was paid into the account for each eligible child, with family members able to make further contributions.
The intention was to encourage a savings habit from an early age, with account holders gaining access when they turned 18. According to HM Treasury figures, over 750,000 CTF accounts remain unclaimed.
As these funds are now accessible, young adults are being encouraged to check if they are entitled to a CTF, particularly as many are unaware of their existence or how to claim them.
HMRC’s Current Campaign
HMRC has begun writing to 21-year-olds whose accounts are still unclaimed, as this cohort is most likely to have current contact details held by government departments through PAYE or student finance records.
The letters are being sent in stages, although specific timelines have not been disclosed. Lucy Rigby, Economic Secretary to the Treasury, emphasised that hundreds of thousands of young people “do not know they have a Child Trust Fund, let alone how to access it”.
She highlighted that “a couple of thousand pounds sat there would really help them as they begin adult life”.
Accessing Unclaimed Funds
Those seeking information on a possible Child Trust Fund can use the government’s free Find My Child Trust Fund tool available online. The tool is open to anyone aged 16 or over, as well as to parents or guardians acting on behalf of their children. Users require a Government Gateway ID or GOV UK One Login, together with their name, address, date of birth, and National Insurance number.
Once a request is submitted, HMRC aims to respond within three weeks, identifying the provider holding the account. Account holders must then contact the provider directly to access their funds. The government encourages use of the official GOV UK service, rather than waiting for a postal letter, to accelerate the process.
Safeguarding Against Scams
Consumer website MoneySavingExpert has cautioned that criminals may attempt to imitate genuine HMRC communications relating to Child Trust Funds. HMRC states that all genuine CTF communications will be sent by post only.
Any email, text message, or phone call claiming to be from HMRC about a Child Trust Fund should be considered a scam. Members of the public are encouraged to forward suspicious texts to 60599 and emails to phishing@hmrc gov uk.
HMRC also warns against using third-party claims firms, which may demand substantial fees for services that are free through the government’s website.
Challenges for Vulnerable Claimants
Tens of thousands of CTF accounts belong to young people with special educational needs or disabilities. Accessing these funds can be complex, as families must obtain Court of Protection authorisation, with costs sometimes exceeding the value of the funds held.
Martin Lewis, founder of MoneySavingExpert, is among the advocates calling for reform to streamline access for vulnerable account holders. Many campaigners argue that current legal and administrative hurdles place an unfair burden on the most disadvantaged.
Final Summary
The extensive campaign by HMRC to alert thousands of 21-year-olds to their unclaimed Child Trust Funds is part of a broader effort to ensure that substantial savings, set aside for young people, do not remain forgotten.
While the government encourages eligible individuals to use official online tools, concerns remain for vulnerable groups who face disproportionate barriers to access.
The debate over reforms is likely to continue as policymakers and advocates seek to simplify the process for all claimants. For those wishing to take control of their finances, financial apps such as Pie can help users keep track of their savings and investments.
