Thousands of young people could receive more than £2,000 each as HMRC launches a new drive to reunite them with forgotten child trust funds. Over £1.5 billion remains unclaimed in these accounts, according to recent data.
What Are Child Trust Funds?
Child trust funds are long-term, tax-free savings accounts established for every child born between 1 September 2002 and 2 January 2011. The government initially deposited £250 into each account, with an additional £250 for children from low-income families or those in local authority care. These funds grow with interest over time, often becoming worth significantly more than the initial deposit.
Who Can Access Their Fund?
Young people can take control of their child trust fund at age 16 and withdraw money when they turn 18. Currently, two-thirds of the six million recipients are over 18, meaning they should be able to access their accounts. However, an estimated 750,000 young adults have yet to claim their fund, leaving £1.5 billion unclaimed.
To address this, the government has launched an awareness campaign, writing to all 21-year-olds with unclaimed accounts to help them locate and access their funds.
Government and Charity Response
Economic Secretary to the Treasury, Lucy Rigby, stated: “Hundreds of thousands of young people in this country don’t know they have a child trust fund, 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. Together, we will ensure funds from these child trust funds can be accessed by young people to help give them the best start to adult life.”
Gavin Oldham, chair of the Share Foundation, a charity that helps people find their child trust funds, welcomed the move but urged the government to “go much further.” Earlier this month, the organisation called for the automatic release of funds from HMRC accounts to owners when they turn 21, a step that could immediately provide up to £286 million to young people.
How to Find a Lost Child Trust Fund
Child trust funds have since been replaced by Junior Individual Savings Accounts (ISAs), which are similar but do not include government contributions. Lost funds often occur because claimants or guardians have lost track of the account or forgotten it was set up.
Official guidance advises against using third-party agents who charge fees to locate funds—sometimes up to £350 or 25% of the account value. Instead, HMRC recommends searching “find your child trust fund” on Gov.uk or using the free, approved tool from the Share Foundation, which requires only a few details to claim and access the account.
Every young person also receives a national insurance notification before their 16th birthday, which includes information on how to locate child trust funds.
