Hundreds of thousands of young Britons are being urged to search for forgotten Child Trust Fund accounts, with HM Revenue & Customs (HMRC) reporting that 758,000 accounts remain untouched. Each account holds an average of £2,242, leaving approximately £1.7 billion lying dormant.
Anyone born between 1 September 2002 and 2 January 2011 is likely to have a Child Trust Fund if Child Benefit was claimed on their behalf. The accounts were set up to give children a financial head start, with at least £250 deposited by the government at birth. Young people can take control at 16, but the money only becomes available at 18.
Angela MacDonald, HMRC's Second Permanent Secretary, said: "If you're between 18 and 23, you could be sat on a savings payout and not even realise it." Many account holders are unaware of their funds because parents did not act on vouchers, leading HMRC to open accounts automatically with unknown providers.
HMRC has published a checklist to help track down the money. The government says it takes just five minutes to submit a request using the official online tool, with most people hearing back in under three weeks. Over 563,000 searches were made in the past year alone.
Experts say the cash could be a crucial boost for rent, university costs or savings. Shelley Doorey-Williams, chief executive of the London Foundation for Banking & Finance, said: "With an estimated average of £2,242 waiting in unclaimed accounts, this is real money at a crucial time." The scheme has now closed and been replaced by Junior ISAs.
