HMRC Initiates Campaign to Reconnect Young Adults with Unclaimed Child Trust Funds
Introduction
The UK tax authority, HMRC, has commenced a campaign to contact all 21-year-olds who have unclaimed Child Trust Funds (CTFs), aiming to facilitate access to savings averaging £2,200 per account. Approximately £1.5 billion remains unclaimed across 750,000 accounts, despite the majority of recipients having reached the age of eligibility.
Main Body
Child Trust Funds are long-term, tax-free savings accounts established for every child born between 1 September 2002 and 2 January 2011. The government initially deposited £250 into each account, with an additional £250 for children from low-income families or in local authority care. Account holders can assume control at age 16 and withdraw funds at 18. According to HMRC data, two-thirds of the six million recipients are now over 18, yet an estimated 750,000 accounts remain unclaimed. As part of a new awareness initiative, the government will write to all 21-year-olds with unclaimed accounts. Economic Secretary to the Treasury Lucy Rigby stated that many young people are unaware of their funds and that the campaign aims to ensure these savings can be accessed to support the transition to adult life. The Share Foundation, a charity that assists individuals in locating their CTFs, welcomed the move but argued that further action is necessary. Earlier in the month, the organization called for the automatic release of funds from HMRC accounts to owners upon turning 21, a measure it estimates could immediately disburse up to £286 million. CTFs have since been replaced by Junior Individual Savings Accounts (ISAs), which operate similarly but lack government contributions. HMRC guidance notes that the most common reasons for lost funds are that account holders or their guardians have misplaced records or forgotten the accounts. Every young person receives a National Insurance notification before their 16th birthday containing information on locating CTFs. The tax authority advises against using third-party agents who charge fees—sometimes up to £350 or 25% of the account value—and instead recommends searching ''find your child trust fund'' on Gov.uk or using the free, approved tool provided by the Share Foundation.
Conclusion
The government''s current campaign involves direct correspondence with eligible young adults, but advocacy groups like the Share Foundation continue to press for automatic disbursement as a more comprehensive solution. The situation remains that hundreds of thousands of individuals have yet to claim funds that are legally theirs.