The UK's tax authority has issued an urgent call to thousands of young adults, alerting them to a potential financial windfall that may be sitting forgotten in a bank. HM Revenue & Customs (HMRC) is specifically targeting individuals born in 2007, who are now turning 18, as they may have an unclaimed Child Trust Fund (CTF) with an average value of £2,000.
What is the Child Trust Fund and Who is Eligible?
These savings accounts were a government initiative designed to encourage long-term saving for the younger generation. Every child born in the UK between 1 September 2002 and 2 January 2011 was eligible to receive a CTF, kickstarted with a government voucher. Many families, however, have lost track of these accounts over the years due to moving house or changing financial providers, leaving the funds dormant.
While the initial alert focuses on those born in 2007 who are reaching the key age of 18, the reminder is relevant for anyone born within that nine-year window. The value of each fund varies, as the original government contribution could be topped up by family members, and the money may have been invested. Officials state the average unclaimed pot is now around £2,000, but some accounts could hold significantly more.
How to Find and Access Your Lost Savings
Young people gain control of their CTF at age 16, but cannot withdraw the money until they turn 18. HMRC is urging those approaching their 18th birthday to take action. The government provides a free online tracking service to help locate the specific bank or building society managing the account.
To use the service, you will need your National Insurance number and your date of birth. Once the provider is identified, the account holder can contact them directly to claim the money. This process is designed to be straightforward, ensuring young adults can access what is rightfully theirs.
A Financial Springboard for Adult Life
This unexpected sum presents a significant opportunity for young people stepping into adulthood. Financial experts highlight that it offers a perfect practical lesson in money management. The cash could provide a boost for a variety of life goals, such as:
- Contributing to university or further education costs.
- Putting a deposit down on a first car.
- Starting an investment journey by moving the funds into a tax-free Adult ISA.
- Simply building a foundation for future financial security.
If you or someone you know was born between 2002 and 2011, it is worth checking for a forgotten Child Trust Fund. This government-backed initiative could be holding a valuable nest egg, ready to be claimed as a welcome financial head start.
