HM Revenue and Customs (HMRC) has issued an urgent call to hundreds of thousands of young people across the UK, urging them to claim substantial sums of money that are rightfully theirs. The government body is targeting individuals aged between 18 and 23 who may be unaware they have a matured Child Trust Fund waiting to be accessed, with the average unclaimed pot standing at a significant £2,242.
What is the Child Trust Fund and Who is Eligible?
The Child Trust Fund was a long-term, tax-free savings scheme launched by the government. It was automatically set up for every child born in the UK between 1 September 2002 and 2 January 2011. Each account received an initial government deposit of at least £250 to kickstart the savings. These accounts are not held by the government itself but by a range of banks, building societies, and other savings providers.
While young people can take control of their account from the age of 16, the fund fully matures when they turn 18. At this point, the account holder can decide to either withdraw the money or reinvest it into another savings product. The latest data reveals a startling figure: an estimated 758,000 young adults in the 18-23 age bracket have yet to claim their matured funds.
A "Real Money" Boost at a Crucial Time
In a pre-Christmas push, HMRC took to social media platform X to encourage claims, stating: “Unlock a boost this Christmas by cashing in your Child Trust Fund. If you’ve turned 18 in the past few years, then you could be missing out.”
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, emphasised the simplicity of the process: "If you’re between 18 and 23, you could be sat on a savings payout and not even realise it. Just search ‘find my Child Trust Fund’ on GOV.UK to find your savings account today."
The call has been welcomed by financial education advocates. Shelley Doorey-Williams, CEO of the London Foundation for Banking & Finance, commented: "It’s encouraging to see the Government making efforts to reunite people with money they may not even realise was theirs. With an estimated average of £2,242 waiting in unclaimed accounts, this is real money at a crucial time, that can help young people right at the start of their financial lives."
How to Claim Your Money
The process for checking and claiming is designed to be straightforward. Young adults who believe they may have an account should visit the official GOV.UK website and use the dedicated ‘find my Child Trust Fund’ search tool. This service helps locate the account provider, after which the individual can contact them directly to gain access to their savings.
This initiative highlights a substantial pool of unclaimed money that could provide a vital financial foundation for young adults, whether for education costs, driving lessons, rental deposits, or simply building a savings buffer as they start their independent lives.
