Hundreds of thousands of young adults across the UK are set to be contacted by the government regarding forgotten savings accounts worth an average of £2,200 each. The accounts, known as Child Trust Funds (CTFs), were established for children born between 1 September 2002 and 2 January 2011.
Official figures show that more than 750,000 CTFs remain unclaimed, with total unclaimed funds estimated at £400 million. HM Revenue and Customs (HMRC) will initiate contact with 21-year-olds whose CTFs are still unclaimed, informing them of their entitlement.
This forms part of a wider government awareness campaign urging young people to locate their funds via the free 'find my child trust fund' service on gov.uk. Upon reaching 18, the account matures, allowing the holder to either withdraw the money or reinvest it.
Many children received around £250 from the government when their CTF was started, while those from low-income families or in local authority care may have received an additional £250. The funds are held by banks, building societies, or other designated savings providers, not directly by the government.
Economic Secretary to the Treasury Lucy Rigby said: 'Hundreds of thousands of young people in this country don't know they have a CTF, let alone how to access it. Some will have a couple of thousand pounds sat there that would really help them as they begin adult life.'
Child Trust Funds have now been replaced by Junior Individual Savings Accounts (ISAs), which work similarly but without an initial government contribution.
