Martin Lewis Warns Young People to Claim Unused Child Trust Funds

Martin Lewis, renowned financial expert and founder of MoneySavingExpert.com, has issued a significant advisory concerning unclaimed Child Trust Funds (CTFs) that could benefit thousands of young individuals across the United Kingdom. Lewis is alerting individuals aged 18 to 22 about unclaimed CTFs worth an average of £2,212, urging them to access and claim these funds.

According to recent research, over 670,000 Child Trust Funds remain unclaimed, with many young people possibly unaware of their existence. Lewis emphasized the importance of this message by stating, “This is an important warning for anybody aged under 22. You may have £2,000 in a Child Trust Fund that you do not know about, and you can get the money out of it for free.”

Child Trust Funds were introduced by the UK government for children born between 1 September 2002 and 2 January 2011, providing an initial deposit of at least £250. These are long-term, tax-free savings accounts that can be accessed once the account holder turns 18.

Concern has been raised over advertisements from firms attempting to charge individuals to access their own CTFs. Lewis cautioned against such services, stating, “I have started to see adverts on social media from firms trying to charge you to access your own money or trying to get a cut of your savings to get you your money. Do not touch them. It is easy to do yourself.”

A survey conducted by UCAS among first and second-year university students highlighted that 43% of respondents were most interested in knowing the amount in their CTFs, while 32% wanted information on how to claim it. Furthermore, 60% of students gained information about CTFs from their parents.

Angela MacDonald, Deputy Chief Executive of HM Revenue and Customs, added, “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.”

Currently, there are 5.3 million open Child Trust Fund accounts with over 500,000 matured accounts having been claimed or transferred into ISAs since 2020. Sharon Davies, CEO of Young Enterprise, emphasized the impact of unclaimed funds, saying, “The money in a Child Trust Fund has the potential to be life-changing… It shows the importance of financial education and planning from a young age.”

Young adults and parents interested in locating these funds can do so via the UK government’s online tools.