Thousands of young adults across Britain are sitting on forgotten fortunes without even realising it, according to startling revelations from HM Revenue and Customs.
The tax authority has disclosed that approximately £400 million remains unclaimed in Child Trust Funds (CTFs) - government-backed savings accounts established for children born between September 2002 and January 2011.
The Hidden Savings Crisis
As these children reach adulthood, a concerning pattern has emerged: many are completely unaware they have money waiting to be claimed. When a young person turns 18, their CTF automatically matures, but the funds don't automatically find their way to the rightful owner.
"We want to make sure that young people are claiming the money that is rightfully theirs," stated an HMRC spokesperson, highlighting the urgency of the situation.
How Did This Happen?
The Child Trust Fund scheme was a Labour government initiative designed to encourage savings habits from birth. Every eligible child received at least £250 from the government, with children from lower-income households receiving £500. Family and friends could contribute up to £9,000 annually.
However, many parents lost track of these accounts due to:
- Moving house without updating addresses
- Misplaced paperwork
- Assuming the funds would automatically transfer
- Simply forgetting about the account existence
How to Reclaim Your Money
If you were born between September 2002 and January 2011, you likely have a CTF waiting for you. The process to reclaim is straightforward:
- Use the government's online CTF tracing service
- Have your National Insurance number ready
- Follow the verification process
- Once located, you can either withdraw the funds or transfer to an adult ISA
"The average value of these matured funds is £2,000," according to HMRC data, meaning some young adults could be missing out on significant sums that could help with university costs, housing deposits, or starting a business.
Don't Let Your Money Gather Dust
With inflation eroding the value of unclaimed funds and thousands of accounts remaining dormant, financial experts are urging young adults to act now. The money represents a valuable head start in adult life that was specifically intended to help bridge the wealth gap for younger generations.
If you're between 18-21 years old, take five minutes today to check if you have a hidden windfall waiting. That forgotten government gift from your childhood could be the financial boost you need right now.
