Economic Secretary to the Treasury Lucy Rigby announced the formation of a new Child Trust Fund (CTF) taskforce, bringing together government officials and industry representatives to tackle the growing number of dormant savings accounts.
HM Revenue & Customs (HMRC) estimates that about 827,000 people aged 18 to 24 have a matured CTF waiting to be claimed, with an average balance of £2,310, equating to roughly £1.9 billion in unclaimed funds.
Child Trust Funds were long‑term, tax‑free savings accounts set up for children born between 1 September 2002 and 2 January 2011, each receiving an initial government deposit of at least £250. The scheme closed in January 2011 and was replaced by Junior ISAs, but the original accounts remain with banks, building societies and other providers.
The Treasury urges anyone unsure of their account’s whereabouts to use the free gov.uk locator tool. In the nine months to August, nearly 500,000 young people used the service to locate their CTFs, according to HMRC data.
Rigby said, “The oldest matured accounts are now more than six years old and some young people may not know they have savings waiting for them. The taskforce has been set up to help those young people who don’t know about their savings. If you’re unsure where your account is, you can find it quickly, easily and for free using the gov.uk locator tool.”
Since the scheme’s closure, almost three million CTFs held by 18‑ to 24‑year‑olds have either been claimed or transferred into ISAs, but the remaining unclaimed balances represent a significant financial resource for a generation that may otherwise miss out on their entitlement.