Untapped Savings Pots Worth £1.7 Billion Await Young Adults
Hundreds of thousands of young people in the UK stand to benefit from forgotten Child Trust Fund accounts averaging £2,242 each. HM Revenue & Customs (HMRC) reports that 758,000 such accounts remain unclaimed, totaling an estimated £1.7 billion in dormant funds. Authorities are intensifying campaigns to connect 18- to 23-year-olds with these savings, as many remain unaware of their existence.
Angela MacDonald, HMRC’s Second Permanent Secretary, stated: “If you’re between 18 and 23, you could be sat on a savings payout and not even realise it.”
Who Qualifies for These Funds?
Individuals born between September 1, 2002, and January 2, 2011, likely hold a Child Trust Fund if Child Benefit was claimed for them. Parents often received a voucher to establish the account, but HMRC created one automatically if no action was taken. These funds provided an initial government contribution of at least £250 at birth to support financial independence in adulthood.
Accessing and Managing Your Account
Account holders gain control at age 16, with full access available at 18 upon maturity. Options include withdrawing the funds, transferring to an ISA, or reinvesting elsewhere. Despite this, numerous accounts stay untouched due to lack of awareness about providers or existence.
Key Steps to Locate Your Fund
- Confirm birth dates between 2002 and 2011.
- Check with parents for details; otherwise, use the free GOV.UK locator tool.
- Prepare your National Insurance number.
- Submit a request online—it takes about five minutes, with responses typically in under three weeks.
- Contact your provider for management options once located.
HMRC notes over 563,000 searches in the past year, signaling rising interest but underscoring the volume of unclaimed assets.
Why Claim Now?
These funds offer vital support for expenses like rent or university fees. Shelley Doorey-Williams, chief executive of the London Foundation for Banking & Finance, emphasized: “With an estimated average of £2,242 waiting in unclaimed accounts, this is real money at a crucial time.”
The Child Trust Fund scheme has ended, replaced by Junior ISAs, making it essential to claim existing pots promptly to avoid losing track.
