The HMRC has shared a surprising fact: many young adults in the UK may have unclaimed money. If you were born between 1 September 2002 and 2 January 2011, you might be able to claim an average of £2,242 from a Child Trust Fund (CTF). This amount can provide significant financial help, especially when every penny matters.
So, what is a Child Trust Fund? Why are so many accounts still unused? More importantly, how can you find out if you’re one of the 758,000 young people who can benefit from this unexpected money?
At Clarkwell & Co. Chartered Certified Accountants, we want to help young people get what they deserve. With many unclaimed Child Trust Fund accounts in the UK, now is a great time to take action. If you are between 18 and 23 years old, you could receive an average of £2,242, which can help start your financial journey, support your education, or aid your future plans.
Understanding the Child Trust Fund (CTF): What Is It Really?
A Child Trust Fund is a tax-free savings account set up by the UK government for children born between 1 September 2002 and 2 January 2011. This program aimed to help every child save money by automatically opening an account with an initial government contribution of £250 or £500. Some children from low-income families even received two payments.
Parents, family members, and friends could add more money to the account over time. Banks, building societies, or investment firms managed the funds, aiming to grow the money through interest or market gains. The CTF remained tax-free until the child turned 18, at which point the funds became available to them.
Many account holders have claimed their savings, but a large number have not, leaving over £1.7 billion in unused funds.
Why Have So Many Child Trust Funds Gone Unclaimed?
A recent report from the HMRC Child Trust Fund team shows that over 758,000 people aged 18 to 23 have not accessed their matured CTFs. This is not just surprising; it’s a large amount of unused money.
Several reasons explain this situation. Some individuals may not know about their child’s savings account because their parents were unaware of it or forgot about it. Others might find it hard to check their child’s trust fund if they moved often or never received account statements.
There is also a lot of confusion. Some people think these accounts are small and not worth the trouble. However, the average value of a child trust fund is around £2,242, making it a valuable opportunity. Many accounts even exceed £5,000 due to regular contributions and investment gains.
Step-by-Step: How to Check If You’re Owed Money
Finding your child’s trust fund is easy. The gov.uk Child Trust Fund Tool is a free and secure online service that helps you locate your account quickly. You only need your National Insurance number and date of birth.
Visit the Gov.uk Child Trust Fund Tool and follow the instructions. If your identity matches their records, they will tell you who your provider is and how to contact them. You can then request access, check your balance, and start claiming your money.
If you already know who the provider is, like from a letter from a bank or building society, you can skip the gov.uk tool. Just contact them directly, ask for a child trust fund check, and give your personal details.
When a CTF Matures: What Happens Next?
Turning 18 is an important step. When your child’s trust fund matures, it becomes your account. Only you can withdraw the money; no one else can.
You can take out the full amount, reinvest it, or move it to a tax-efficient Adult ISA. The good news is that transferring money to an Adult ISA doesn’t count against your annual ISA limit, which helps your savings grow tax-free.
If you don’t act right away, your money won’t disappear. However, the longer you wait, the more chances you might miss for better investments, higher interest rates, or the security that extra money can provide.
The £2,242 Question: How Much Could You Really Get?
The average value of unclaimed child trust fund accounts is about £2,242, but some recipients have found much more. If parents regularly contributed to the account or it was in investment-based funds, it could be worth £4,000 to £6,000 or even more.
Not all accounts will have these higher amounts. Some might have less than £1,000 if there were no extra contributions. However, it’s still free money from HMRC that you can claim. To find out exactly what you are owed, you need to check your child’s trust fund.
Also, remember that any withdrawals are tax-free. You won’t owe HMRC anything when you access your matured funds.
What Can You Do With Your Child’s Trust Fund Payout?
You have many options for using your child’s trust fund payout in 2025. You could:
- Pay off student loans
- Book a dream trip
- Save for your first home
- Start a small business
- Build an emergency fund
You could also invest the money. With an ISA, your funds can grow without taxes on interest or capital gains. Consider longer-term options like a Lifetime ISA or a high-yield fixed-term account.
At Clarkwell & Co., we help clients match their savings with their goals. Whether you want to save for the future or make a big move now, our financial advisors can help you make the most of your payout.
Why Taking Action Now Is More Important Than Ever
Time is money, and with over £1.7 billion unclaimed, acting quickly can help you. If you don’t claim your child’s trust fund, you miss out on your savings and lose potential interest or investment growth.
Many young people aged 18 to 23 are at an important time in their lives. Some are starting university, while others are beginning their careers or moving into new homes. A financial boost of even £2,000 can create opportunities and reduce the need for expensive loans or credit cards.
If you feel overwhelmed by the process, don’t worry. Our team at Clarkwell & Co. Chartered Accountants in London is ready to assist you. We can help you check your fund and plan your next financial steps.
Could HMRC Investigate Your CTF?
It’s uncommon, but it can happen. If your account details don’t match, like incorrect National Insurance information or disputed guardian details, HMRC may check your CTF more closely.
Other tax problems can also cause concerns. That’s why it’s helpful to work with experts who know the system. At Clarkwell & Co., our Tax Investigation Specialists provide personalised help to ensure you respond to questions quickly and correctly.
If your CTF is part of a larger tax issue, don’t worry. We offer reliable HMRC tax investigation services in the UK, including representation, appeals, and negotiation support. Check out our tax investigation service in London.
Let Clarkwell & Co. Help You Move Forward
Claiming your unclaimed child trust fund can be an easy way to boost your finances, but it’s just the start. At Clarkwell & Co., we offer complete support to help you manage your money wisely.
Our London team is ready to assist you with long-term savings plans, buying your first property, or answering questions from HMRC. We also specialise in:
- HMRC child savings advice
- Tax investigation services in London
- Personalised investment advice
- Financial planning for young adults
Contact us for a no-obligation chat and let us help you take control of your financial future.
Claim What’s Yours: Final Steps to Secure Your Child’s Trust Fund
If you are 18 to 23 years old, don’t let thousands of pounds sit unused. Use the gov.uk child trust fund tool today to start claiming what is yours.
If you face any issues, need help, or want to make good choices with your money, reach out to Clarkwell & Co. Chartered Certified Accountants. We provide expert advice on tax investigations, HMRC savings, and more.
Every step and every pound matter when building your financial future.
