Young adults missing out on £2,000 - could you be one of them?

A huge number of young adults are missing out on thousands of pounds in unclaimed child trust funds (CTFs).

The average CTF is worth about £2,200.

But HM Revenue and Customs (HMRC) says over 750,000 accounts are still sitting unclaimed.

So the government is planning to write to young people who haven’t claimed their money in an effort to reunite them with their accounts.

What are child trust funds?

CTFs are long-term tax-free savings accounts for children born between 1 September 2002 and 2 January 2011.

The idea was that these pots of money would increase in value over subsequent years and could then be claimed once the child turned 18.

The government initially contributed £250 to each account, with children from low-income families or those in local authority care receiving an extra £250. 

Parents, guardians and other family members could also pay up to £9,000 a year into their child’s account. 

But even without additional payments, most funds are worth much more than when they were set up, because of interest.  

CTF money ‘could really help young adults’

Economic secretary to the Treasury Lucy Rigby said she is “determined” to make young adults with CTFs aware that they have this money.

“Hundreds of thousands of young people in this country don’t know they have a CTF, let alone how to access it,” she commented. 

“Some will have a couple of thousand pounds sat there that would really help them as they begin adult life.”

How do I track down a child trust fund?

If you don’t know where the account was originally opened, then your parents or guardians might know.

Alternatively, get in touch with HMRC.

If you already know who the account is with, contact the CTF provider directly.