HMRC alert over unclaimed pots of cash worth thousands if you were born in these years

Millions of young adults in the UK could be missing out on savings worth thousands of pounds, as Child Trust Funds (CTFs) set up by the government between 2002 and 2011 mature. HM Revenue & Customs (HMRC) is urging those aged 18 to 22 to check if they have unclaimed funds, with the average account holding around £2,200.

The CTF scheme was launched by the Labour government in 2005 to help children build savings. Each child received an initial £250 deposit from the government, with children from lower-income families receiving £500. An additional £250 was added when the child turned seven, and family members could contribute up to £9,000 annually.

The accounts were designed to mature when the child turned 18, at which point the funds could be withdrawn or transferred into an adult ISA. However, the program was scaled back in 2010 and closed to new applicants in 2011, leaving many unaware of their eligibility.

How to Claim

• If you know your CTF provider, contact them directly to access the funds.
• If unsure, use HMRC’s online tracing service (gov.uk/child-trust-funds) with your National Insurance number.
• Parents or guardians can also search for a child’s CTF with their details.

Special Cases

• For individuals unable to manage their finances due to mental capacity issues, a legal guardian must apply to the Court of Protection (or equivalent in Scotland/Northern Ireland) to access the funds.

With living costs rising, financial experts encourage young adults to check for unclaimed CTFs, which could provide a financial boost for education, housing, or savings. HMRC warns that after maturity, accounts can no longer receive deposits, so claiming or transferring the funds promptly is essential.

For those who missed out on CTFs, Junior ISAs remain an alternative, allowing tax-free savings of up to £9,000 per year for under-18s.