A recent initiative led by the Lucy Rigby is shining a light on a surprising issue, many young adults in the UK may be sitting on savings they do not even realise they have. The focus is on Child Trust Funds, long term, tax free savings accounts set up for children born between September 2002 and January 2011.
These accounts were originally introduced to encourage saving from an early age and to give young people a financial head start when they reached adulthood. In many cases, the government contributed at least £250 at birth, with additional amounts for lower income families. Over time, these funds have often grown, and some are now worth a few thousand pounds.
However, a significant number of these accounts remain unclaimed. According to recent government commentary, hundreds of thousands of young people are unaware that they even have a Child Trust Fund, let alone how to access it. Lucy Rigby highlighted that this money could provide meaningful support as individuals begin adult life, whether that means funding education, covering living costs, or helping with a first major purchase.
To address this, HM Revenue and Customs has stepped up its efforts to reconnect individuals with their savings. One of the key measures is a targeted campaign aimed at 21 year olds, a group considered more likely to have up to date contact details through employment or student finance records. Letters are being issued directly to encourage individuals to check whether they have an account and to take steps to access it.
In addition, HMRC continues to promote its free online tracing service, which allows individuals to locate their Child Trust Fund provider quickly and without cost. This is an important point, as some third party services charge fees for what is essentially a straight–forward process when completed through official channels.
Clients reading this update, with children in the relevant age group, or young adult clients themselves, may be advised to check whether funds are available.
In many ways, this initiative highlights a broader theme. Even well intentioned government schemes can lose visibility over time, leaving valuable resources unused. A small amount of awareness can make a significant difference, particularly when it helps individuals access funds that are already rightfully theirs.
