Over 750,000 child trust funds are unclaimed – here is how to track down yours

HMRC is writing to thousands of 21-year-olds with unclaimed child trust funds (CTFs) – tax-free savings accounts set up for children born in the 2000s.

As of this month, more than 750,000 CTFs remain unclaimed, with an estimated £1.5bn to £1.6bn sitting in these accounts, or around £2,200 on average.

The move is designed to help reunite young people with savings they may have lost track of.

Here, Which? explains how child trust funds work, what HMRC’s latest initiative means for you and how to track down and claim your money.

Child trust funds explained 

CTF's were introduced by the Labour government in 2005 to encourage parents to save for their child’s future. These accounts were offered to children born in the UK between 1 September 2002 and 2 January 2011.

Parents and guardians of eligible children received vouchers from the government to start one, with each child receiving £250, while children from low-income families or those in local authority care received £500 instead. 

There were two main choices for child trust fund accounts, and these were:

• Cash child trust fund: A savings account where money is held in cash and earns tax-free interest.
• Shares-based child trust fund: An investment account where money is invested in the stock market, either through your own choices or ready-made funds. 

If the voucher was not used within one year, HMRC opened an account for the child. This was known as a stakeholder CTF, which spread the money across a range of investments. It also had a limit on fees, so the yearly cost was never more than 1.5%.

All savings paid into them are free from both income tax and capital gains tax, and parents and guardians could add up to £9,000 to the accounts every year. The child can then access their money when they turn 18. 

New CTFs are no longer available because they were replaced by junior Isas back in 2011. However, if you already have one, you can still pay into it.

• Find out more: best savings accounts 2026.

Why HMRC is writing to thousands

Many CTFs remain unclaimed because young adults are unaware they have an account or have lost details of it – particularly those whose accounts were opened automatically by the government.

According to data analysed by the Share Foundation, as of April 2026, a total of 61% of all unclaimed CTFs are HMRC-allocated. 

Providers have also struggled to link these funds to their owners because details such as names, addresses and other contact details have changed over time.

The new initiative aims to act as a nudge for CTF owners to take action. The tax office has focused on this age group because many will now be working or using student finance, meaning HMRC is more likely to hold up-to-date contact details.

HMRC has not confirmed exactly how many people it will contact, but says it will be in the thousands, with letters sent in stages.

The letters will tell recipients who their CTF provider is and how to contact them. HMRC has said it will write by post, so you should be cautious of unexpected texts, emails or calls claiming to be about your CTF.

• Find out more: best cash Isas 2026.

How to find a lost child trust fund 

If HMRC contacts you – or you think you may have a CTF – here’s what to do.

Received a letter? 

After receiving the letter, you will need to contact your CTF provider directly using the information listed on their website. There will not be contact details listed on the letter, and you will not need to contact HMRC about it directly. 

Once you have reached out, your CTF provider may require further verification documents to make sure you are authorised to access the account. They should be able to guide you through this process and let you know what they need when you contact them.

If you do nothing, then the money will still be kept safe by the CTF provider until you contact them.

Didn't receive a letter?

If you haven’t received a letter from HMRC and you were born when CTF were being set up, you may have one out there. 

If you are 16 or 17, then you will be able to manage the account yourself. If you are over 18, you will be able to claim the money. 

To reclaim it, you will need to know which bank, building society or investment provider it's held with. If you already know this, you can simply contact it directly.

If you are unsure where your account is, you can find it by following these steps:

• Sign in online: Use the free HMRC tool. You will need to sign in with your Government Gateway ID or your Gov.uk One Login.
• Provide your details: Enter your information (or your child's), including name, address, date of birth, phone number, and National Insurance number.
• Wait for a response: HMRC should contact you within three weeks to tell you which provider holds the account. If it needs more information, it will call or write to you.
• Contact the provider: Once you have the details, get in touch with the provider to claim the account.

Find out more: best children's savings accounts 2026.

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What to do with your child trust fund

Once you’ve tracked down your account, the next step is deciding how to use the money.

Receiving a lump sum you didn’t know about can be appealing, particularly as balances average more than £2,000.

Under 18

You cannot access the money in the account if you are under 18, however, from the age of 16 you can manage it. You will need to contact your child trust fund provider and take over as the registered contact – replacing your parent or guardian. 

When managing it, you will be able to see the latest balance and deposit more money. If you're under 18, you will only have three management options, and these are: 

• Leave the money with the current provider.
• Transfer the account to a different CTF provider.
• Move the money into a junior Isa. These usually have better interest rates and lower fees. However, if you switch, you cannot move the money back to a CTF later.

Find out more: best junior Isas 2026.

Over 18

There are several things you can do with your CTF when it matures: 

• Do nothing: On your 18th birthday, your trust fund matures and is transferred to an HMRC-protected account, which will keep the tax-free status of the cash but won't let you contribute. Until you withdraw or transfer the money, it stays in an account that no one else has access to.
• Partially withdraw: You don't have to take all the money out at once. You can choose to withdraw part of it to spend and keep the rest in the account. For example, you could take some money out for something you need and move the remaining balance to a different savings or investment provider.
• Fully withdraw: It's your account, and you can withdraw the money in full if you want to. This small windfall can be helpful for things such as holidays, driving lessons, cars, or home deposits. 
• Move to an Isa: Once it’s matured, you can transfer your money into an adult cash or stocks or shares Isa. Some trust fund providers do this automatically. The only exception is if your provider isn't authorised to offer them. These accounts keep your cash tax-free. 
• Move to a savings account: Depending on how much is in the account, you may want to transfer it to a standard savings account instead. This can allow you to access the money more frequently if you need it, or you could drip-feed it into a high-interest regular savings account. However, interest accumulated through these accounts is subject to tax.