HMRC says 758,000 accounts have yet to be claimed, with each worth an average £2,242
Hundreds of thousands of young Britons are being encouraged to search for a forgotten savings fund worth over £2,200. HM Revenue & Customs (HMRC) reports that 758,000 Child Trust Fund accounts remain untouched, each containing an average of £2,242.
That is leaving approximately £1.7billion lying dormant. Officials are now intensifying attempts to reconnect young adults with the funds, cautioning that many may be oblivious to the money’s existence.
Angela MacDonald, HMRC’s Second Permanent Secretary, said: “If you’re between 18 and 23, you could be sat on a savings payout and not even realise it.”
Who might be missing out
Anyone born between September 1, 2002 and January 2, 2011 is likely to have a Child Trust Fund if Child Benefit was claimed on their behalf. In numerous instances, parents received a voucher to establish the account – but if they didn’t act, HMRC opened one automatically, meaning thousands are unaware where their savings are held.
The accounts were created to provide every child with a financial head start in adulthood, with at least £250 deposited by the Government at birth.
The ‘forgotten fund’ issue
Young people can assume control of their account at 16, but the money only becomes available at 18, when the fund matures.
At that stage, they can:
- Withdraw the cash.
- Transfer it into an ISA.
- Reinvest it elsewhere.
However, many haven’t done so – frequently because they don’t know who their provider is or that the account even exists.
The key things you need to know
HMRC has published a checklist to help young people track down their money and understand their options:.
- If you were born between 2002 and 2011, you probably have an account
- Parents may have opened it – or HMRC may have done so for you
- You can take control at 16
- You can access the money at 18
- You can move the funds into an ISA or savings account
- Your provider can explain your options
- Ask your parents first for account details, if they don’t know, use the free GOV.UK locator tool here.
- You’ll need your National Insurance number
- Your money remains safe until you claim it
How to track it down
The Government says it takes just five minutes to submit a request using the official online tool here with most people hearing back in under three weeks.
More than 563,000 searches were made in the past year alone, showing growing awareness – but also highlighting how many accounts are still unclaimed.
Why it matters
Experts say the cash could be a crucial financial boost at a key moment in life – helping with rent, university costs or savings.
Shelley Doorey-Williams, chief executive of the London Foundation for Banking & Finance, said: “With an estimated average of £2,242 waiting in unclaimed accounts, this is real money at a crucial time.”
Act now or lose track
With the scheme now closed and replaced by Junior ISAs, the focus is on ensuring existing funds reach their owners.
