HMRC Unclaimed Child Trust Funds: Over £1.5 Billion Awaits Young People

HMRC’s new campaign aims to reconnect young people with over £1.5 billion in unclaimed Child Trust Funds. Approximately 750,000 accounts remain untouched, leaving significant savings unaccessed by those who are eligible. On average, each unclaimed account holds around £2,200 — a substantial amount that could benefit many young adults as they transition into financial independence.

Child Trust Funds were introduced by the UK Government in 2005 to promote financial awareness and savings among youth. Eligible children received a minimum of £250 when their account was opened, with an additional £250 for those from low-income families. However, despite these efforts, hundreds of thousands of young people remain unaware of their accounts.

Lucy Rigby, the Economic Secretary to the Treasury, highlighted the issue, stating, “Hundreds of thousands of young people in this country don’t know they have a CTF, let alone how to access it.” Her determination reflects the urgency of ensuring that these funds are made accessible to those who need them most.

Account holders can access their funds once they turn 18. Yet many young adults may be unaware that they even have a Child Trust Fund. The funds are managed by banks and building societies rather than the government itself, making it essential for individuals to take action to locate their accounts.

To assist in this process, the Government urges young people to use the free “find my child trust fund” service available on GOV.UK. Additionally, the Share Foundation provides a free tool designed to help locate these accounts using a National Insurance number and date of birth.

Rigby emphasized the importance of this initiative: “Together, we will ensure funds from these child trust funds can be accessed by young people to help give them the best start to adult life.” This proactive approach aims not only to raise awareness but also to empower youth financially.

The total amount of unclaimed Child Trust Funds stands at an impressive £1.5 billion — that is nearly three times what was initially deposited into these accounts when they were first established. As HMRC reaches out directly to 21-year-olds with unclaimed funds, it remains uncertain how many will respond or how effectively the campaign will bridge this awareness gap.

With financial literacy being increasingly recognized as essential for youth savings, this campaign represents a critical step toward improving financial awareness among young adults in the UK. Only time will reveal how many will take advantage of this opportunity and reclaim their rightful funds.