HMRC issues alert as thousands of young people could be owed £2,240

HMRC has issued an alert to thousands of young people who could be owed as much as £2,240 and may not be aware of it. According to the Government department, there are 758,000 matured Child Trust Fund accounts that remain unclaimed.

Child Trust Funds are long-term, tax-free savings accounts created by the UK Government for children born between September 1, 2002, and January 2, 2011. Each account was started with a government deposit of at least £250 to help families save for their children's future. Now, many of these accounts have grown significantly, with the average fund worth over £2,240.

The Government is encouraging young people aged 16 to 18 to check if they have money waiting for them, as some could be entitled to thousands of pounds from the scheme.

Angela MacDonald, HMRC's Second Permanent Secretary and Deputy Chief Executive, said: "If you're between 18 and 23, you could be sat on a savings payout and not even realise it. Just search 'find my Child Trust Fund' on GOV.UK to find your savings account today."

Young people can start managing their Child Trust Fund accounts from age 16, but the account officially matures at 18, allowing them to choose whether to withdraw the money or reinvest it.

Interest in these accounts has surged, with over 563,000 young people using the online tool to locate their funds in the year leading up to August 2025.

The busiest period was September 2024, when more than 71,000 searches were made. Finding a Child Trust Fund is quick and easy-it takes about five minutes to submit a request online, and most people receive a response within three weeks.

All that's needed is the young person's National Insurance number and date of birth, reports Manchester Evening News.

Shelley Doorey-Williams, CEO of the London Foundation for Banking & Finance, said: "As a committed member of the YFCG (Youth Financial Capability Group), the London Foundation for Banking & Finance welcomes HMRC's call for young people to claim their Child Trust Fund savings.

"It's encouraging to see the Government making efforts to reunite people with money they may not even realise was theirs. With an estimated average of £2,242 waiting in unclaimed accounts, this is real money at a crucial time, that can help young people right at the start of their financial lives."