Financial expert Martin Lewis has issued a crucial warning to people under the age of 22, alerting them to the possibility that they could be missing out on over £2,000 in unclaimed Child Trust Funds (CTFs). According to recent research, more than 670,000 of these savings accounts remain unclaimed, with many young people potentially unaware that they have money set aside in their name.
Despite the potential financial benefit, many young adults remain unaware of their Child Trust Fund savings. A survey by UCAS revealed that while 43% of university students are curious about how much money is in their CTF account, 32% said they wanted to know how to claim it. Interestingly, 60% of students reported that they first learned about their Child Trust Fund from their parents.
Unclaimed Funds Could Make a Real Difference
Angela MacDonald from HMRC stressed the importance of raising awareness about Child Trust Funds among young adults. “Many 18-21 year olds are starting out in first jobs or apprenticeships, starting university, or moving into their first home, and their Child Trust Fund is a pot of money with their name on it,” she said. “I would encourage young people to use the online tool to track it down or, for parents of teenagers, to speak to them to ensure they’re aware of their Child Trust Fund. It could make a real difference to their future plans.”
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As of now, there are 5.3 million open Child Trust Fund accounts. More than 500,000 matured accounts have already been claimed or transferred into ISAs since the first CTF accounts matured in September 2020. Families can continue to contribute up to £9,000 per year tax-free until the account holder turns 18.
How to Find Your Child Trust Fund
If you think you might have a Child Trust Fund, it’s easy to check. Young adults or parents can visit GOV.UK to find out where the account is held and how to access the funds.
Sharon Davies, CEO of Young Enterprise, also urged young people to investigate whether they have unclaimed money in a CTF, emphasizing the potentially life-changing impact of these funds. “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,” she said. “The investment could be placed into an adult ISA or put towards driving lessons, education, or starting a business.”
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Davies highlighted the importance of financial literacy and early financial planning, stating that the unclaimed funds demonstrate a need for better financial education for young people.
If you’re under 22, it’s worth checking to see if you have a Child Trust Fund with your name on it—after all, it could be £2,000 or more that you didn’t know you had.
