Latonya Skye-Paterson had no idea that a Child Trust Fund (CTF) had been set up for her until a college tutor suggested she check online. To her surprise, she found £955 waiting in her account—a sum that far exceeded her expectations and proved incredibly helpful.
“I’m really grateful for it. It helped me so much,” said Latonya, 20, who is among millions of young adults who may be unaware of the funds set aside for them. New figures show that £1.4 billion is currently waiting to be claimed by 728,000 individuals who have turned 18. However, many of them remain unaware that these accounts even exist, according to the Share Foundation, a charity dedicated to helping people track down lost funds.
The issue has sparked renewed calls for the government to implement automatic pay-outs for unclaimed CTFs, a move backed by a senior Member of Parliament (MP). However, the government has expressed concerns about the complexity and cost of such a scheme.
Latonya, like others born between September 2002 and January 2011, had a Child Trust Fund initiated by the government, usually with an initial £250 deposit. The fund was designed to grow tax-free until they turned 18, giving them a financial boost at the start of adulthood. On average, CTFs have grown to around £2,000, thanks to interest and contributions from family and friends.
Yet, like hundreds of thousands of her peers, Latonya had no idea her account even existed when she reached her 18th birthday. She was fortunate enough to have a college tutor who informed her about the fund, but her older brother, who went to the same college, was never told about his account.
The Share Foundation is now advocating for a “default withdrawal at 21” plan, which would automatically release unclaimed funds to their rightful owners if they haven’t been accessed by the time account holders turn 21. This would apply to what are known as “HMRC allocated accounts”—funds where no action was taken by parents or guardians to set up the account after receiving the initial government voucher. These unclaimed accounts, totaling 449,000 with £927 million, have prompted campaigners to call for automatic pay-outs using National Insurance numbers.
“People don’t know this money exists. They don’t even know where to begin to look,” said Latonya. “It could really give people a break, especially with the cost of living. It’s all about luck—who knows, who tells you about it.”
Sir Geoffrey Clifton-Brown, an MP and Chair of Parliament’s Public Accounts Committee, voiced his support for the proposal. Speaking on BBC Radio 4’s Money Box, he likened the situation to “a treasure trove buried on a desert island” and stressed the need for the government to take a more proactive approach in ensuring these funds reach their recipients. “We could do much more to encourage the government to find the recipients,” he said, adding that he would raise the issue with Treasury and HMRC officials during their next appearance before the committee.
HMRC, however, has responded cautiously to the proposal, acknowledging its complexity. A spokesperson for the department explained that closing accounts and transferring the funds would require “careful legal consideration” and “operational systems” to monitor the process. Additionally, they stated that such a scheme would involve multiple government departments and CTF providers.
The government remains committed to reuniting young adults with their Child Trust Funds and recognizes the importance of ensuring that these funds benefit recipients as they reach adulthood. However, the logistical challenges of implementing a broad automatic pay-out system remain a sticking point.
For now, young adults like Latonya continue to benefit from the funds, but the growing call for automatic pay-outs suggests many others may be left behind unless significant action is taken to address the issue.
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