Young adults missing out on thousands of pounds - are you 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 more than £2,000 each.

But figures from HM Revenue and Customs (HMRC) show that around 758,000 young people have yet to claim the savings in their account.

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.  

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.

“Whether young people are on an apprenticeship, starting their first job, or making plans to go to university, a child trust fund can make all the difference,” said Myrtle Lloyd, HMRC’s chief customer officer.