More than 750,000 young people in the UK are missing out on an estimated £1.5bn in unclaimed child trust funds (CTFs), prompting calls for the government to automatically release the money when account holders turn 21.
CTFs were introduced by the Labour government in 2005 for all children born between 1 September 2002 and 2 January 2011. Each child received an initial £250 from the government, with an extra £250 for those from low-income families or in care. The average fund is now worth £2,200.
Elle Middlemas, a college student from Whitby, discovered she had £700 in a NatWest account only after a friend's parent told her about the scheme. Her sister, 21, also had a fund. 'We just assumed we didn't have them,' she said. 'Everyone who has one should be eligible to get it without having to go through the process I have.'
The Share Foundation, a charity helping reunite young people with their funds, is pushing for HMRC-allocated accounts to be automatically paid out at 21. This would release around £500m, with £350m going to low-income young adults. Chief executive Gavin Oldham said the scheme is 'falling short due to a lack of communication, inadequate financial education and sheer policy neglect.'
The north-east of England has the highest rate of HMRC-allocated accounts, worth £48m in total. The charity is considering a judicial review to force government action.
