Thousands of young adults in the Gen-Z age group are being encouraged to check whether they have unclaimed funds waiting for them, with an average savings pot of £2,212 per person. According to HM Revenue and Customs (HMRC), around 671,000 individuals aged between 18 and 22 are sitting on unclaimed child trust funds (CTFs).
CTFs were established for children born from September 1, 2002, to January 2, 2011, with many children receiving approximately £250 each from the government when their CTF accounts were opened. Additional amounts were provided to children from low-income families or in local authority care. Young adults gain control of their CTF account at 16 and have the option to withdraw funds once they turn 18.
However, some individuals may have forgotten about these accounts or are unaware of their existence. The funds are typically held by banks, building societies, or other financial institutions and remain in the account until they are withdrawn or reinvested. To locate their CTF account, teenagers or their parents/guardians can contact their provider directly if they have the information. Those who do not know their account details can use an online tool on gov.uk, requiring their national insurance number and date of birth for access.
HMRC’s second permanent secretary and deputy chief executive, Angela MacDonald, emphasised the importance of reuniting young people with their unclaimed funds, stating, “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.” MacDonald advised individuals not to pay third-party agents for assistance in locating their CTF accounts, as using such services could lead to charges, diminishing the amount received.
The CTF scheme was discontinued in January 2011 and replaced by Junior ISAs. HMRC is encouraging eligible individuals to search for their unclaimed CTFs independently through the gov.uk website. By empowering young adults to reclaim their unclaimed funds, HMRC aims to ensure that these financial assets are rightfully returned to their rightful owners.