How to check if you have a forgotten child trust fund
HM Revenue & Customs (HMRC) has highlighted that nearly one million people in the UK may have money waiting for them in a forgotten Child Trust Fund (CTF). If you were born between 1 September 2002 and 2 January 2011, the government opened a savings account in your name. Many young adults are now eligible to access these funds, which could be worth over £2,200 on average, but may not know the account exists.
This is not a new scheme or a windfall, but a long-standing government initiative that has matured. For UK consumers, it’s a practical matter of tracking down a pot of money that is rightfully theirs. Understanding what a CTF is, how to find it, and what you can do with the money is essential personal finance guidance.
What is a child trust fund?
A Child Trust Fund is a long-term tax-free savings account that was opened for every child born in the UK during the specified dates. The government provided an initial voucher of at least £250 to start the account, with additional contributions for lower-income families. Parents, family, or friends could also add money to the fund, up to an annual limit, and it grew free of UK income tax and capital gains tax.
The key feature for consumers today is that the account legally belongs to the child. Once the child turns 16, they can take control of the account, and at age 18, they gain full access to the money. The scheme closed to new applicants in 2011, replaced by the Junior ISA, but existing CTFs continue to operate.
Who is affected and how to check
If your date of birth falls between 1 September 2002 and 2 January 2011, you likely have a CTF. The oldest eligible individuals are now in their early twenties, and the youngest will turn 16 in 2027. Even if your family circumstances changed, or you have moved house many times, the account still exists.
Finding your CTF is straightforward and free. The quickest way is to use the government’s official Child Trust Fund online service. You will need your National Insurance number to use this service. If you do not have this, or if you are a parent helping a young person to look, you can contact HMRC directly for assistance.
What to do when you find your fund
Once you locate your CTF, you have several options, each with different implications:
If you are 16 or 17
You can take control of the account and become the registered contact. This means you can make investment decisions, but you cannot withdraw the money until you turn 18. You could also choose to transfer the fund into a Junior ISA, which may offer a wider choice of investments or better interest rates.
If you are 18 or over
You can withdraw the full amount. It is paid directly to you, and there is no tax to pay on the withdrawal. Before spending it, consider your financial position. This money could be a helpful foundation for adult life, such as contributing to driving lessons, education costs, or a deposit for renting.
Alternatively, you can transfer the CTF into an adult ISA. This allows the money to remain in a tax-free wrapper and continue growing. This is often a sensible choice if you do not have an immediate need for the cash and want to protect your long-term savings allowance.
Important considerations and common mistakes
While accessing forgotten money is positive, there are practical points UK consumers should be aware of to avoid pitfalls.
First, do not pay anyone to find your CTF for you. The government service is free, and any company charging a fee is unnecessary. Second, be aware that the value of the fund depends on how it was invested (in stocks and shares or cash) and whether additional contributions were made. The £2,200 figure is an average; your fund could be worth more or less.
Finally, if you have lost touch with the provider managing the account (like a bank or building society), HMRC can help you reunite with them. The money remains safe and is protected by the Financial Services Compensation Scheme (FSCS).
For many young adults, a Child Trust Fund represents a meaningful financial head start. Taking a few minutes to check its status is a simple but potentially valuable piece of financial housekeeping. It’s your money, and ensuring you can access it is a key step in managing your personal finances.
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