HMRC reports child trust funds are going unclaimed

HMRC said many child trust fund accounts have gone unclaimed since the first round of beneficiaries of the program began turning 18 last year.

Child trust funds (CTFs) were set up for all children born between 1 September 2002 and 2 January 2011 with a live child benefit claim. In some instances, parents or guardians set up these accounts with CTF providers like banks, building societies or investment managers using vouchers provided by the government. HMRC set up CTFs on behalf of children if their guardians did not.

Roughly 6 million CTFs were established by parents or guardians between 2002 and 2011, with a further million set up by HMRC.

At age 16 years, an account holder can choose to operate their CTF account or have their parent or guardian continue to look after it, but they cannot withdraw the funds. At 18 years of age, the CTF account matures and the funds can be withdrawn or transferred into an adult ISA.

HMRC reports roughly 55,000 CTFs are now maturing every month, and while many of them have been claimed, a significant number still have not. 

In 2020, the average value of a CTF account was £1,500.

“It’s fantastic that so many young people have been able to access the money saved for them in Child Trust Funds but we want to make sure that nobody misses out on the chance to invest in their future,” Economic Secretary to the Treasury John Glen said.

“If you’re unsure if you have an account or where it may be, it’s easy to get help from HMRC to track down your provider online.”

HMRC recommends that account holders check with their parent or guardian to see if a CTF had been set up in their name. If they know who their provider is, they should contact them directly.

HMRC can provide alternative, non-digital routes to finding a CTF provider upon request. HMRC will send details of the provider by post within three weeks of receiving their request.