More than 750,000 young adults in the UK are being urged to check if they have unclaimed Child Trust Funds, with an average payout of £2,200 per person. The total unclaimed amount is estimated at £1.6 billion, according to HMRC data.
Child Trust Funds were established for children born between September 1, 2002 and January 2, 2011. These accounts were designed to provide a financial boost when the child turned 18, but many young adults remain unaware of the funds.
How the Accounts Were Set Up
Parents or guardians could open a Child Trust Fund account, but if none was opened, HMRC automatically created one. This has led to many accounts being forgotten over time, especially if families moved house or switched banks.
Andy Wood, tax expert at Tax Barrister UK, said: “This money legally belongs to young adults, but in many cases they may have no idea the account exists. The Child Trust Funds were often opened when they were babies, so it is very easy for families to lose track of the paperwork, especially if they have moved house, changed banks or forgotten which provider was used.”
How to Claim the Money
Wood emphasized that the process is free and straightforward. “The important point is that people do not need to pay someone else to find a Child Trust Fund for them. HMRC has a free online tool on GOV.UK, and that should be the first place to start. You will usually need your National Insurance number and date of birth, and HMRC can then help identify where the account is held.”
Once the account is located, the money can be withdrawn, transferred to another savings product, or left invested, depending on the individual's circumstances.
Potential Uses for the Payout
The average amount is around £2,200, but some pots could be worth more depending on investment performance and whether extra contributions were made. Wood noted: “For many young people, this could be a meaningful sum of money at a time when costs are high. It could help with rent, education, driving lessons, debt repayments or simply provide the start of an emergency savings pot.”
He added: “The key thing is not to assume you are not eligible. If you were born during the qualifying dates, it is worth checking.”
Government Initiative to Reach Claimants
The government is actively working to reach eligible young adults and inform them about the unclaimed funds. With the cost of living remaining high, this money could provide a much-needed financial boost for many.
Anyone born between September 1, 2002 and January 2, 2011 is advised to use the HMRC online tool to check for any unclaimed Child Trust Funds.
