Thousands of young people missing out on unclaimed Child Trust Fund money

Kae Tapscott had no idea he had £4,000 waiting for him until his social worker mentioned it just before he turned 18. The Tredegar, Blaenau Gwent, native had never even heard of the Child Trust Fund (CTF), and he is one of thousands of young people who may not know they have money waiting to be claimed.

The accounts were set up for every child born in the UK between 1 September 2002 and 2 January 2011 with government money, but more than three quarters of a million accessible accounts are still unclaimed. The amount in each account varies, but the average value is more than £2,000.

Kae Tapscott said he “had no idea” there was £4,000 waiting for him in a Child Trust Fund, and he is urging other young people to check whether they are owed money. Kae, who wants to be an actor and is studying performing arts at Coleg Gwent, said:

Don't just leave it and do nothing because you might not receive anything if you don't look,

He said he has invested his money in an ISA to save for a house in future. But at first he struggled to find out the details of his CTF because the accounts can be held by a variety of different providers, and he eventually used the Share Foundation's free CTF finder.

Kae said:

I thought i'd get it automatically but I didn't hear anything,

I thought the government would give it to me but I actually had to get it by myself.

The Share Foundation, a charity that runs accounts for young people in care on behalf of the UK government, estimates that £83m is lying unclaimed in Wales alone. Most CTFs were set up by parents using a voucher worth £250, or £500 in the case of low-income families, from the UK government. An additional government payment was made when the child reached the age of seven, and family members could also top up the accounts.

In some cases, the Welsh government also made a small payment to the funds of Welsh children. Where parents or s did not set them up, the CTFs were created by the UK government on the child's behalf.

Can I claim the Child Trust Fund?

About 6.3 million CTFs were created for children born in the UK between 1 September 2002 and 2 January 2011. More than 750,000 matured accounts remain unclaimed, with an average value of about £2,200.

The amount of money in each CTF will vary. A young person can take control of their account when they reach 16, but they cannot access the money until they are 18. Never pay anyone money to help you find your CTF. You can conduct a free search for your CTF via gov.uk or The Share Foundation.

Other related stories include reports such as

I got £955 from a Child Trust Fund I didn't know I had

and

Mum's fight to unlock disabled son's savings

Gavin Oldham, chair of the Share Foundation, said the main reason for accounts going unclaimed is that some young people have simply never been told about it. He said the purpose was to give a young person

some resources for when they became an adult so that it would actually give them a good start.

Oldham wants to see the UK government implement an automatic release scheme for young people whose CTFs were created by the government because they are the group most likely to be unaware of their existence. He said:

If they haven't found it by the time they're 21, the money should be released through payroll, benefits or student loan routes,

The UK government said savings belonged to account holders and were held by private sector providers. It said:

The government does not have the authority to access or transfer these funds,

The government also said:

The government is committed to reuniting young people with their CTFs.

It added that HMRC works with providers, industry representatives and others to raise awareness and help individuals trace their accounts, including through targeted communications and a free GOV.UK tracing service.

What should young people do now?

Young people who may have a Child Trust Fund should check whether one exists, especially if they were born in the UK between 1 September 2002 and 2 January 2011. The accounts may be held by different providers, and tracing them through the free GOV.UK service or The Share Foundation can help identify what is owed.

The key point, according to those involved in the campaign, is not to ignore the possibility that money is waiting. Kae Tapscott’s experience shows that some people do not hear anything automatically and may need to search for the account themselves.

The issue affects a large number of young adults across the UK, with more than 750,000 matured accounts still unclaimed and an estimated £83m unclaimed in Wales alone.

Key Facts

• Child Trust Funds were created for children born in the UK between 1 September 2002 and 2 January 2011.
• More than 750,000 matured accounts remain unclaimed, with an average value of about £2,200.
• The Share Foundation estimates £83m is unclaimed in Wales alone.
• Young people can take control of their account at 16, but cannot access the money until 18.
• Free searches are available via gov.uk and The Share Foundation.