Around 671,000 young adults are sitting on unclaimed pots of cash worth more than £2,000 on average, according to HM Revenue and Customs (HMRC).
The revenue body is reminding 18- to 22-year-olds with unclaimed child trust funds (CTFs) about their windfalls – with the average savings pot worth £2,212.
CTFs were set up for children born between September 1, 2002 and January 2, 2011.
Many children received around £250 each from the state at the time their CTF was started, while those from low-income families or in local authority care received an additional £250.
Young people can take control of their account at 16 and withdraw funds when they turn 18.
But some young adults may have forgotten about their accounts or be unaware one was set up on their behalf.
The CTF scheme closed in January 2011 and was replaced with Junior ISAs.
Angela MacDonald, HMRC’s second permanent secretary and deputy chief executive, said: “Thousands of child trust fund accounts are sitting unclaimed – we want to reunite young people with their money and we’re making the process as simple as possible.”
Parents with children aged between 12 and 21 can check if they can claim the money.
The fund was a long-term tax-free savings account that was set up for children born between September 1, 2002 and January 2, 2011. The idea was the Government would provide an initial deposit of at least £250 and funds could be withdrawn once the account matured when the child turns 18.
The chair of the public accounts committee for the Government, Dame Meg Hillier, said: “In an ongoing cost-of-living crisis, our young people need every bit of support we can give them. HMRC still has time to make sure that CTFs are given the chance to be the boost to young people’s futures which they were designed to be.”
The Government has paid more than £2bn into child trust funds for 6.3 million children born during this period, with the intention of helping them financially in early adulthood.
How do I find out if I have a Child Trust Fund?
Every child born between September 1, 2002 and January 2, 2011 has one. HMRC can tell people who the account is held with or they can contact their child trust fund provider directly if they know who the account is with.
Is my money safe?
Yes, the Government has said it will keep the money safe until it is claimed by an account holder.
How do I find my Child Trust Fund?
Those wanting to find out more information about their trust fund can fill out an online form here with HMRC. To use the online form you will need your national insurance number and a Government Gateway user ID and password. If you do not have a user ID, you can create one the first time you sign in.
When did the Child Trust Fund start?
The scheme was started in 2005 and closed in 2011. It has been replaced with junior individual savings accounts, which parents or carers can open on behalf of a child.
