• Nationwide, HSBC UK, Sheffield Mutual and Yorkshire Building Society among members of new taskforce meeting for first time as government takes action to reunite young people with unclaimed Child Trust Funds
• The Taskforce will improve coordination across government and industry to encourage more young people to access their unclaimed matured funds
• More than 750,000 young people have unclaimed accounts worth £2,200 on average

Hundreds of thousands of young people could soon be reunited with unclaimed savings worth more than £1.6 billion, as the government launches a new push to trace matured Child Trust Funds (CTFs).

Around 6.3 million Child Trust Fund accounts were opened for children born between 1 September 2002 and 2 January 2011, predominantly by parents and guardians, with the remainder established by HMRC. Accounts can go unclaimed for a number of reasons difficulty locating them, people forget they have them, or a decision to leave the funds invested for the time being.

Child Trust Funds were introduced to give every child a financial asset at adulthood, and this government is doing everything it can to make sure young adults are aware of and can access their accounts.

To make this happen, Economic Secretary to the Treasury, Rachel Blake MP, has convened a new Child Trust Fund Taskforce, bringing together CTF providers and the Government to drive a coordinated effort to increase reunification of accounts.

Members of the Taskforce will include One Family, Coutts, Nationwide, HSBC UK, Pilling, The Coventry (Co-operative), Sheffield Mutual, Unity Mutual, Forester, Healthy Investments and Yorkshire Building Society – with the first meeting happening today.

More than 750,000 young adults still have unclaimed matured accounts, holding £2,200 on average. The funds were originally set up by the government for those born between 1 September 2002 and 2 January 2011. The Taskforce will improve coordination across government and industry to encourage more young people to access their unclaimed matured CTFs.

Rachel Blake, Economic Secretary to the Treasury, said:

Too many young people are missing out simply because they are not aware of where their Child Trust Fund is or how to access it.

We are acting to fix that by bringing government and industry together – improving coordination and making it easier for people to find and claim what’s rightfully theirs.

JP Marks, HMRC’s Chief Executive and First Permanent Secretary, said:

Many young people have Child Trust Fund accounts with an average £2,200 waiting to be claimed. This is their money, and we want to do all we can to help them find and access it.

If you think you have one, you can use the ‘Find my Child Trust Fund’ tool on GOV.UK to find out where your account is held.

The Taskforce will bring providers together to improve tracing approaches, test more effective engagement with young people, and drive practical actions that lead to more accounts being claimed.

Today’s move builds on existing action to tackle unclaimed matured accounts, including ongoing HMRC communications campaigns and direct letters going out to eligible 21-year-olds.

Anyone born between 1 September 2002 and 2  January 2011 can search for their account on GOV.UK. The search is free, requires only a National Insurance number, and takes minutes. Those aged 18 or over can access funds immediately.

Jim Islam, Chief Executive Officer, OneFamily, said:

We welcome the creation of the Child Trust Fund Taskforce to help more young people access their savings. We know from our own experience that making this process as easy as possible is essential and we look forward to working together with government and industry partners.

Child Trust Funds have already provided a valuable financial boost to millions of individuals who have claimed their accounts as they enter adulthood, making a real difference to people’s lives.

We’re committed to playing our part in helping people who have not yet claimed. Anyone born after 1 September 2002 who has already turned 18 will have a Child Trust Fund, and can search for their account on the government website.

Philip Kurtenbach, Head of Product Management & Governance, Wealth & PB, HSBC UK said:

At HSBC UK, we’re committed to putting customers at the heart of everything we do. We know that having a fund to support young people as they start adult life can make a real difference – opening up opportunities at a pivotal moment in their lives. That’s why we’re supporting the HMT Taskforce as the industry comes together to ensure the funds reach those they were intended for.

Richard Stocker, Head of Savings, Nationwide said:

Nationwide is pleased to be part of the Child Trust Fund taskforce and fully supports its aims. We remain committed to working collaboratively across the industry to build on the progress made so far and deliver a meaningful outcome on this important issue.

Notes

• The Child Trust Fund scheme was introduced in 2005 to give every child a financial asset for the future. It applied to eligible children born between 1 September 2002 and 2 January 2011, with the Government making a payment into each account.
• Accounts began maturing on 1 September 2020, and more than 750,000 matured accounts remain unclaimed, with an average value of about £2,200. Many eligible young people, now aged 15 to 23, may not know they have an account. The total value of unclaimed funds runs into hundreds of millions of pounds.
• The Taskforce aims to break down barriers to opportunity and give young people the best start to adult life. It also aligns with the National Youth Strategy, which identifies financial insecurity as a key pressure and calls for practical action.

source: GOV