HMRC has issued a new alert urging young Brits to check if they have an unclaimed Child Trust Fund, with over 750,000 potentially missing out on an average of £2,200.
Who is eligible?
Those born between September 1, 2002, and January 2, 2011, are likely to have a Child Trust Fund, a long-term, tax-free savings account set up with an initial £250 government contribution. Young people can take control at 16 and access the funds at 18 when the account matures.
The savings are held with banks, building societies, or other savings providers, not the government, and remain in the account until withdrawn or reinvested.
How to check
If you know your provider, contact them directly. If not, use the online tool on GOV.UK to trace your Child Trust Fund, needing only your National Insurance number and date of birth. Over the past year, more than 450,000 customers have used this free tool.
Financial expert Martin Lewis previously highlighted the issue: "You could be one of a million people who have a hidden £2,000 in savings that you know nothing about." He explained that the state started every fund with at least £250, and up to a million of the 6.3 million funds are lost.
Expert insight
Andy Wood, tax expert at Tax Barrister UK, said many young adults are unaware they have an account. "Many Child Trust Funds were opened automatically by parents, guardians or HMRC itself more than two decades ago, meaning it's entirely possible for someone to reach adulthood without realising they have one."
Wood added that a common misconception is that no communication means no account, but records may have been lost due to house moves or family changes.
