Thousands of households across the United Kingdom are set to receive letters from HM Revenue and Customs (HMRC) as part of a nationwide effort to reunite young people with unclaimed Child Trust Funds (CTFs). The initiative targets accounts that have remained untouched, with an estimated £400 million still waiting to be claimed.
The move forms part of a broader government campaign to raise awareness and ensure eligible individuals access savings that were set aside for them during childhood.
Background
Child Trust Funds were introduced in 2005 as a long-term savings scheme designed to give children a financial start in adulthood. The government provided an initial deposit of at least £250 into each account, with some receiving additional contributions depending on family circumstances.
Although the scheme closed to new applicants in 2011, millions of accounts remain active. Funds in these accounts become accessible when the account holder turns 18.
Despite this, a significant number of young adults are either unaware of their accounts or unsure how to access them.
Scale
Current estimates suggest that more than 750,000 Child Trust Fund accounts remain unclaimed. According to The Share Foundation, over £400 million is held in HMRC-allocated accounts alone.
On average, each unclaimed account is worth around £2,200. For many young people, this amount could provide meaningful financial support at the start of adult life, whether for education, housing, or other essential expenses.
Letters
HMRC has confirmed it will write directly to 21-year-olds whose Child Trust Funds have not yet been accessed. These letters are intended to notify recipients that they may have funds available and provide guidance on how to claim them.
The focus on this age group reflects the expectation that individuals should have already taken control of their accounts after turning 18. By age 21, any unclaimed funds are considered at risk of being forgotten.
Access
Young people aged 16 or over can take control of their Child Trust Fund, but withdrawals are only permitted once they reach 18.
For those who already know where their account is held, the process is straightforward. They can contact the savings provider directly to access or manage their funds.
For others, the government recommends using the free “Find My Child Trust Fund” service available on GOV.UK.
Process
Locating a Child Trust Fund is designed to be a simple process. Applicants typically need to provide:
- National Insurance number
- Date of birth
If the National Insurance number is not readily available, it can be accessed through the HMRC mobile app and stored digitally.
Once a request is submitted online, HMRC usually responds within three weeks with details of the account provider. Postal requests may take longer to process.
Options
Since the Child Trust Fund scheme is no longer open to new accounts, parents and guardians now have the option to use Junior ISAs as an alternative savings vehicle.
A Junior ISA is a tax-free savings or investment account that allows families to build funds for a child’s future. Like Child Trust Funds, the money becomes accessible when the child turns 18.
However, it is not possible to hold both a Child Trust Fund and a Junior ISA at the same time. If a Junior ISA is opened, the existing Child Trust Fund must be transferred into it.
Impact
Officials have emphasized the importance of ensuring young people are aware of these funds. Economic Secretary to the Treasury Lucy Rigby noted that many individuals may have savings they do not know exist.
The current campaign aims to address this gap by increasing visibility and encouraging eligible individuals to take action.
For those who successfully locate their accounts, the funds could serve as a useful financial foundation at a critical stage of life.
Ensuring these resources are accessed aligns with broader efforts to promote financial awareness and inclusion among young adults. While the process is relatively simple, awareness remains the key barrier. With targeted outreach and accessible tools, the government aims to reduce the number of unclaimed accounts and help more individuals benefit from savings intended for their future.
FAQs
What is a Child Trust Fund?
A savings account set up for children born between 2002-2011.
How much is in unclaimed funds?
Over £400 million remains unclaimed.
When can funds be withdrawn?
At age 18.
How to find a lost CTF?
Use the GOV.UK locator tool.
