430,000 Britons could be missing out on up to £2,000 each

HMRC said around 430,000 people aged between 18 and 21 years have an unclaimed Child Trust Fund.

Child Trust Funds are long-term, tax-free savings accounts and were set up for every child born between September 1, 2002, and January 2, 2011, with the Government contributing an initial deposit of at least £250.

Those born between 2002 to 2005 may be eligible for a payout worth an average of £2,000.

According to HMRC, there are currently 5.3 million open Child Trust Fund accounts, which young people aged 16 or over can take control of.

Those on low incomes received a £250, or £500 voucher from the Government when the account was opened.

Families could then add up to £9,000 a year, with the child able to access the money when they turn 18.

It should be noted that the funds can only be withdrawn once the child turns 19.

Anyone who is still yet to claim their savings could be owed a few thousand in cash from HMRC.

Angela MacDonald of HMRC said: “Many 18-21-year-olds are starting out in first jobs or apprenticeships, starting university or moving into their first home and their Child Trust Fund is a pot of money with their name on.

“I would encourage young people to use the online tool to track it down or, for parents of teenagers, to speak to them to ensure they’re aware of their Child Trust Fund. It could make a real difference to their future plans.”

Britons can track down any unclaimed Child Trust Funds if they know the bank, building society or investment provider their Child Trust Fund is with.

If people don’t know, HMRC has a tool where people can find out which provider their Child Trust Fund is with.

To access the information, people need to log into their ‘Government Gateway ID. Fill in their details including name, address, date of birth, phone number and National Insurance number.

Once this has been completed, they should hear from HMRC within three weeks. It should tell them which provider holds the account and then individuals can contact their CTF provider.