HM Revenue and Customs (HMRC) has announced that almost 3 million Child Trust Fund accounts belonging to 18 to 24-year-olds have either been claimed or moved into an Individual Savings Account since September 2020. Despite this, approximately 827,000 matured Child Trust Funds remain unclaimed, with an average value of £2,310.
Child Trust Funds are long-term, tax-free savings accounts established for children born between 1 September 2002 and 2 January 2011, each receiving an initial government deposit of at least £250. Young people can manage their accounts from age 16 and, upon maturity at 18, can choose to withdraw, leave, or reinvest the funds.
A Child Trust Fund Taskforce, led by Economic Secretary to the Treasury Lucy Rigby, has been formed to assist more young people in accessing their savings and to reduce the number of unclaimed accounts. The GOV.UK locator tool allows individuals to find their Child Trust Fund quickly and for free, with almost 500,000 young people using it in the nine months leading up to August this year. Submitting a request via the online tool typically takes about 5 minutes, and most receive a response within three weeks.