HMRC has issued a warning that 750,000 Brits born between September 1, 2002 and January 2, 2011 could be missing out on an average of £2,200 from unclaimed Child Trust Funds. The total amount sitting dormant in these accounts exceeds £1.6 billion, according to HMRC.
What Are Child Trust Funds?
Child Trust Funds were government-backed savings accounts set up for children born between September 1, 2002 and January 2, 2011. Parents or guardians could open an account, and if they did not, HMRC automatically opened one. The funds were intended to provide a financial asset when the child turned 18.
Many young adults are unaware that money is waiting for them, often because families lost track of paperwork after moving house, changing banks, or forgetting which provider was used.
Government Launches Taskforce
The government has launched a Child Trust Fund Taskforce, bringing together providers and officials to help more people trace and claim their money. 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.”
Wood added: “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 Check for Unclaimed Funds
HMRC provides a free online tool on GOV.UK to check for unclaimed Child Trust Funds. Users need their National Insurance number and date of birth. The tool identifies where the account is held, and once located, the money can be withdrawn, transferred to another savings product, or left invested.
“The important point is that people do not need to pay someone else to find a Child Trust Fund for them,” Wood said. “HMRC has a free online tool on GOV.UK, and that should be the first place to start.”
Potential Uses for the Money
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 urged: “The key thing is not to assume you are not eligible.”
