More than 750,000 young people could be owed an average payout of £2,200 as the Government launches a new push to reunite Britons with forgotten savings.
HMRC has said there is more than £1.6 billion sitting in unclaimed Child Trust Funds, which were set up for children born between September 1, 2002 and January 2, 2011.
The accounts were created to give children a financial asset when they reached adulthood, but many young adults are still unaware they have money waiting for them.
Child Trust Funds were opened either by parents and guardians or automatically by HMRC if no account was set up.
Now, the Government has launched a new Child Trust Fund Taskforce, bringing together providers and officials to help more people trace and claim their money.
Andy Wood, tax expert at Tax Barrister UK, said: “This money legally belongs to young adults, but in many cases they may have no idea the account exists.
“The Child Trust Funds were often opened when they were babies, so it is very easy for families to lose track of the paperwork, especially if they have moved house, changed banks or forgotten which provider was used.
“For anyone born between September 1, 2002 and January 2, 2011, it is well worth checking. The average amount is around £2,200, but some pots could be worth more depending on investment performance and whether extra contributions were made.”
The Government says around 6.3 million Child Trust Fund accounts were opened under the scheme.
Those aged 18 or over can access the money immediately once the account has been found.
According to Wood, the process should be straightforward, and warned people not to pay third-party firms to trace the money on their behalf.
“The important point is that people do not need to pay someone else to find a Child Trust Fund for them.
“HMRC has a free online tool on GOV.UK, and that should be the first place to start. You will usually need your National Insurance number and date of birth, and HMRC can then help identify where the account is held.
“Once the account is located, the money can either be withdrawn, transferred into another savings product, or left invested depending on the individual’s circumstances.”
Parents and guardians may also be able to help younger adults trace an account if they remember receiving paperwork when the scheme was first set up.
However, even if the original details have been lost, HMRC can still help track down the provider.
Wood noted: “For many young people, this could be a meaningful sum of money at a time when costs are high.
“It could help with rent, education, driving lessons, debt repayments or simply provide the start of an emergency savings pot.
“The key thing is not to assume you are not eligible. If you were born during the qualifying dates, it is worth checking.”
The government has said the new taskforce will work with Child Trust Fund providers to improve tracing methods and make it easier for young adults to access matured accounts.
Anyone born between September 1, 2002 and January 2, 2011 can search for their account using the free Child Trust Fund tool on GOV.UK.
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