£274m of Child Trust Fund cash has not been claimed – here's how to get yours

Yahoo

27-07-2025

Almost £275m of government-allocated funds are being 'hidden' from disadvantaged young people and going unclaimed, charities have warned.
Child Trust Funds (CTFs) are long-term, tax-free savings accounts for people born between 1 September 2002 and 2 January 2011, which they can access when they turn 18.
Children received around £250 each from the government at the time their CTF was started, or £500 if they were from low-income families or in local authority care.
A second top-up was added when the child turned seven years old for those who qualified for Disability Living Allowance between 6 April 2009 and 5 April 2011, or turned seven between 1 September 2009 and 31 July 2010.
The accounts could also be added to by a parent, with the average amount held in CTFs totalling around £2,000. If no action was taken by families to claim the accounts when they were set up, they were allocated by HMRC.
However, according to The Share Foundation, a charity that helps track down unclaimed funds, more than £400m is sitting unclaimed in HMRC-allocated accounts waiting for people to claim them. And more than half of the accounts belong to young adults on low incomes, with £274m meant for disadvantaged young people left unclaimed.
The charity has warned that if no action is taken, there will be nearly £1bn lying dormant and unclaimed for low-income young adults by the end of this parliament.
Dawn Smith, 21, said her Child Trust Fund helped her achieve the best grade possible at university, where she was later offered her first job.
However, she said it took her over a year to access her fund due to a name change.
'My parents were aware of it, but we had no idea where it was or how much money was in it – we knew nothing,' she said.
She then searched online and found The Share Foundation, which helped her to claim her fund.
The Share Foundation is calling on the government to implement a new automatic release mechanism to ensure all HMRC-allocated funds are paid out when account holders turn 21 – without the need for them to make a claim.
Ms Smith told The Independent: 'I managed to claim mine in the second year of university. I studied music at university in London, which was very expensive. While my parents were doing as much as they could, once I got that trust fund, it all went towards uni.
'It went towards my equipment and anything I could use to get the best grade possible. I used it for things that were very needed at the time.
'It's helped me invest in my future. With having that trust fund helping me do so well, the uni has actually offered me a job, so I'll be a tutor for them.'
Chairman of The Share Foundation, Gavin Oldham, described the money as being 'hidden' from young people.
He said: 'The government has no funding for low-income young people, not because it lacks intent, but because it lacks the means. So why not release the £400m that is currently sat unclaimed in HMRC-allocated Child Trust Funds belonging to young people aged 21 or over?
'This would provide an immediate resolution at no cost to them – and £274m of this would be delivered immediately to low-income young people.'
The proposed changes would mean that if an unclaimed HMRC-allocated fund matched the national insurance number of someone either claiming benefits, on a payroll or student loan system, the money would be released to the corresponding accounts.
Labour peer David Blunkett, who has also called for changes to be made, told The Independent: 'A simple means of releasing the money directly to them using modern technology is a no-brainer. The trawl for contact details would be the same as banks uses when checking for 'unclaimed assets' and cross-reference with national insurance numbers would also help.
'Not only would this be a boon to the young people concerned at a moment when they need it most, but also an injection of cash into local economies across the country, which is bound to help the overall economy.'
An HMRC spokesperson said it works closely with providers to support young people to track their funds down and every young person is sent information about finding their account with their National Insurance letter.
The Treasury has been contacted for a comment.
How you can claim your Child Trust Fund cash
To find your CTF, the government website advises you to contact your provider directly, if you know who the account is with.
If you don't, you can ask HMRC or contact The Share Foundation for help here: www.sharefound.org
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