HMRC Targets 21-Year-Olds on Unclaimed Child Trust Funds

HM Revenue and Customs is launching a targeted outreach effort to notify thousands of 21-year-olds in the United Kingdom about unclaimed Child Trust Fund accounts, which hold an average of £2,200 each and could provide a financial boost as they enter adulthood.

The initiative focuses on Child Trust Funds, tax-free savings accounts established by the government for children born between September 1, 2002, and January 2, 2011. Officials estimate that more than 750,000 of these accounts remain unclaimed, with funds managed by banks, building societies, or other private providers rather than the government itself. Once account holders reach age 18, the funds mature, allowing them to withdraw the money or transfer it into another investment vehicle.

Many participants received an initial £250 contribution from the government when their accounts were opened. Children from low-income families or those in local authority care often qualified for an additional £250 top-up, leading to potential growth in value over time through interest and further contributions from family members.

HMRC plans to send letters directly to eligible 21-year-olds whose accounts have not yet been accessed,...