HMRC has warned Britons between two key dates that they could be missing out a thousands of pounds of unclaimed cash. In a post on X on the tax authority said: “Your child could have an average of £2,200 sitting unclaimed. If your child has recently turned 18, they may have a Child Trust Fund waiting for them. Find out if they qualify.”
The Child Trust Fund (CTF) was launched in 2005 by Gordon Brown, who was then the Chancellor under Tony Blair.The initiative was set up to ensure that Briton had some savings by the time they reached 18, and to educate young people about investing. The long-term tax-free savings account was open to children born between September 1, 2002 and January 2, 2011. It means the people who have one today are roughly between 15 and 23 years old.
The Labour Government of the time sent out initial vouchers for parents and guardians to set up accounts with, but would open them automatically with an approved provider anyway if they didn’t. As a result, many people will have accounts and be unaware that they exist.
Some 6.3 million accounts were set up, with babies born between the two dates given £250 by the Government.
Those in low-income families or local authority care got an additional £250 on top of that. Additionally, some got a further £250 payment after turning seven, depending on their date of birth, The Times reports.
Parents can put in their own money too. The current rules still allow them to add up to £9,000 a year to an existing CFT.
There are three types of accounts, the majority of which are stakeholder accounts. With these, money was initially invested in the stock market before moving to less risky investments after the child turned 13.
You could also get a cash account akin to a cash savings account, or an investment-based account, with the money invested in stocks, shares, and bonds, with potentially higher returns – though at higher risk. These two account types make up around 17 and 4% of the total, according to the newspaper.
The Government says accounts gave grown to an average £2,242. And while amounts in each account will vary greatly, the tax authority says the latest figures suggest 758,000 young people could be missing out.
However, it’s worth noting that not everyone who has an account is able to claim the funds yet. While the money belongs to the child, they can only take control of the account when they’re 16 and withdraw them at 18. Some 3.5 million of the 6.3 million trust funds hadn’t yet matured as of October, 2025.
None of the income or profit from the CTF is taxed, and it doesn’t affect any benefits you receive. The scheme closed in 2011 and was replaced by the Junior ISA scheme, though eligible people who got one could keep them.
And while it’s not possible to have both a Child Trust Fund and Junior ISA, you can ask the provider to transfer the fund into a Junior ISA when you open one.
If you know who the account was set up with, you can get in contact your Child Trust Fund provider directly. If you don’t know, you can ask your parent or guardian if possible.
