Billions Sitting Unclaimed in Child Trust Funds – Are You Missing Out?
Right now, across the UK, there’s a huge pot of money sitting untouched. We’re talking about billions of pounds that belong to young people but haven’t been claimed. It’s all tied up in something called Child Trust Funds , and chances are, you or someone you know could be entitled to it without even realising.
Here’s the situation. According to new government data, around 758,000 young people still have money sitting in Child Trust Fund accounts that has never been touched. In total, that adds up to a staggering £1.5 billion . To put it into perspective, the average account that’s gone unclaimed is worth about £1,980 . But here’s the kicker—tens of thousands of accounts are holding much, much more. Over 27,000 accounts contain more than £10,000 , and many others have between £1,000 and £5,000.
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So, where did this money come from? Child Trust Funds were set up by the government for children born between September 2002 and January 2011 . When the scheme launched, the government gave each child an initial deposit—usually about £250 —and parents could top it up if they wanted. Over time, thanks to investment growth or interest, that money could have grown into a nice little nest egg. The scheme ended in 2011, but the accounts are still very much active.
The way it works is simple: once the child turned 16 , they could take control of the account, and by 18 , the money officially became theirs to withdraw or reinvest. But here’s the problem—many people don’t even realise they have one of these accounts. In fact, a large chunk of the accounts were automatically set up by the government when parents didn’t open one themselves. That means young adults could be missing out simply because they’ve never been told about it.
The government is now urging anyone aged between 18 and 23 to check. It’s not just about claiming what’s yours—it’s also about avoiding unnecessary costs. Some providers are charging high annual fees, often around 1.5% , which can eat into your savings. On top of that, once the account matures, interest rates often drop sharply, so your money could be sitting idle when it could be earning much more elsewhere.
The good news? If you track down your Child Trust Fund and claim it, you can move the money into a much better savings option—maybe a high-interest savings account paying over 4%, or even an adult ISA, which still gives you that tax-free advantage.
If you’re wondering how to check, it’s actually straightforward. If you know your provider, you can go straight to them. If not, HMRC has a tracker tool that helps you locate your account using your National Insurance number and date of birth . Once you apply, they’ll write back with the details.
So, the bottom line is this: don’t leave free money sitting untouched. If you were born between 2002 and 2011, or you’ve got kids in that age range, it’s well worth checking. There could be thousands of pounds waiting, and all it takes is a bit of paperwork to unlock it.
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