New data reveals £1.4 billion is currently sat in unclaimed Child Trust Fund Accounts affecting 728,000 account holders who are unaware of their existence.

Child Trust Funds (CTF’s) were introduced in January 2005 by the Labour Government. For children born between 1st of September 2002 and 2nd of January 2011, a long-term, tax-free savings Child Trust Fund account is automatically set up by the HMRC. This is done if the family hadn’t opened an account by the time the child turns one. Children eligible for the scheme received an initial deposit of £250 from government, which more could be added to by them or the parents. The money in the account belongs solely to the child and they can only access the account when they turn 18.

Many young adults are unaware that they have a Child Trust Fund, and therefore could be missing out on a considerable amount of money. Accounts are estimated to contain an average of £1,000, thus it is worth checking if you have one. A senior MP has suggested that the government introduce automatic payouts at the age of 18, to stop people from missing out. This however faced scrutiny from the government for being both complex and costly to introduce.

Sir Geoffrey Clifton-Brown (Chair of the Public Accounts Committee), told the BBC that he supports the pay-out idea. He further claimed to Radio 4,’I liken this money a bit to a treasure   trove buried on a island in vast acres of sand expecting the poor recipients on these child trust funds to go and find this money’. Moreover reinstating his belief that the government should do more to help those who are missing out. Clifton-Brown finished by encouraging the treasury and the HMRC to introduce the automatic pay-out scheme.

The Share Foundation (UK charity) is encouraging and providing assistance to young adults to track down their CTFs and claim the money that is rightfully theirs. If you were born in-between the dates mentioned above, and haven’t already claimed it, visit The Share Foundation’s website for help finding yours.

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