HMRC has issued a fresh alert for families with children born between 2002 and 2011, revealing that thousands of Child Trust Fund accounts remain unclaimed, with the average balance sitting at £2,200. The tax authority took to X (formerly Twitter) to remind parents and guardians that they may be entitled to money they never knew existed.
According to HMRC, anyone born between 1 September 2002 and 2 January 2011 is likely to have a Child Trust Fund. The government initially deposited £250 into each account, with £500 for children from lower-income families. Young people can take control of their fund at age 16, but they cannot withdraw the money until they turn 18.
Why Are These Funds Going Unclaimed?
The savings are not held by the government but are placed with banks, building societies, or other savings providers. The money remains in the account until it is withdrawn or reinvested. However, many families have lost track of these accounts over the years, especially if they moved house or changed banks.
Of the 6.3 million Child Trust Funds that were opened, it is estimated that up to one million are lost. This means that a significant number of young people are unaware that they have money waiting for them, potentially leaving them at a financial disadvantage as they start their adult lives.
Martin Lewis Urges Families to Check
Martin Lewis, the founder of MoneySavingExpert, has previously highlighted the importance of checking for these funds. Speaking on the matter, he said: "Now, you might be thinking, but my parents didn’t have any money to put in. It doesn’t matter, because the state started everybody off with at least 250 quid, and for some from lower income backgrounds £500."
He added: "So every child trust fund between those dates had money in it. But of the 6.3 million trial trust funds that were active, it’s thought up to a million of them are lost, meaning people have lost track of them, or are unaware that you have them, and that could be you."
How to Find Your Child Trust Fund
Lewis stressed that the process of locating a fund is straightforward. "This is really about checking to make sure you know you have a child trust fund. You know where the money is, and you can access it when it’s time. Thankfully, to do that, there is a tool on gov dot UK. Just search child trust fund on there to do it," he advised.
HMRC has also made it clear that there is no need to pay for help in finding a fund. A spokesperson for HMRC said: "Thousands of Child Trust Fund accounts are sitting unclaimed – we want to reunite young people with their money and we're making the process as simple as possible."
The spokesperson added: "You don't need to pay anyone to find your Child Trust Fund for you, locate yours today by searching 'find your Child Trust Fund' on GOV.UK."
What to Do Next
Parents and guardians of children born between September 2002 and January 2011 are urged to use the GOV.UK tool to check if a fund exists. The process takes only a few minutes and requires basic details such as the child's name, date of birth, and National Insurance number. Once found, the funds can be accessed once the child reaches 18, or earlier if they are already 18.
With the average fund worth £2,200, this could provide a significant financial boost for young people starting university, learning to drive, or saving for a first home. HMRC's campaign aims to ensure that no one misses out on this government-backed savings scheme.
