HM Revenue & Customs has launched a targeted outreach programme to contact 21-year-olds about their dormant Child Trust Funds, potentially unlocking millions of pounds in unclaimed savings across 1.8 million accounts. The initiative represents a significant attempt to reconnect young adults with funds that could total thousands of pounds per individual.
Child Trust Funds, introduced by the Labour government for children born between 1 September 2002 and 2 January 2011, mature when account holders reach 18. However, three years after the oldest cohort gained access, substantial sums remain untouched. Many young adults appear unaware these accounts exist or lack the knowledge to access their funds, creating a growing pool of dormant assets.
The government seeded these accounts with initial vouchers of £250 for standard families and £500 for those on lower incomes. Children born between 1 September 2002 and 31 July 2010 received additional top-ups of £250 or £500 at age seven. Where families made no additional contributions, HMRC automatically invested the government funds into stakeholder accounts, ensuring compound growth over the intervening years.
From approximately 6.3 million CTFs opened initially, HMRC estimates 1.8 million remain unclaimed. This represents a significant sum of money sitting idle in the financial system whilst young adults face mounting living costs and housing deposits. The timing proves particularly relevant as this cohort enters peak spending years for education, property purchases, and career establishment.
Account holders can trace their CTF provider through HMRC's dedicated online tool, which requires basic personal details to identify the holding financial institution. This service streamlines what could otherwise be a complex administrative process, enabling claimants to recover funds that have been growing through investment returns for up to two decades.