Hundreds of thousands of 18 to 21 year olds could have an average of £2,000 waiting for them in their unclaimed Child Trust Fund account
Almost 430,000 18-21 year olds with an unclaimed Child Trust Fund, worth an average of £2,000, are being urged by HM Revenue and Customs (HMRC) to claim their cash as part of UK Savings Week (18 to 24 September 2023).
Child Trust Funds are long-term, tax-free savings accounts and were set up for every child born between 1 September 2002 and 2 January 2011, with the Government contributing an initial deposit of at least £250. Funds can be withdrawn once the account matures when the child turns 18.
A recent student survey, conducted by UCAS, asked first and second year university students about Child Trust Funds. The UCAS survey revealed that 74% of respondents were aware of Child Trust Funds.
Further findings include:
- more men (75%) were aware of Child Trust Funds compared to 73% of women
- 78% of 19 year olds were aware of Child Trust funds compared to 71% of 20 to 21 years olds
- of the people who had not yet claimed their Child Trust Fund, 76% of respondents were likely to take steps to learn more about how to withdraw it.
The Government is encouraging all young people to investigate if they have money which is unclaimed in a Child Trust Fund. A disproportionate amount of the money is unclaimed by young people from disadvantaged backgrounds who are the very people who would benefit most from these funds. The investment could be placed into an adult ISA or put towards driving lessons, education or starting a business.
Further information
More information on Child Trust Funds and how to access the money can be found on GOV.UK.
Latest figures for Child Trust Funds were released on 22 June 2023 and include figures up to April 2022.