Many young adults are unaware of significant amounts of money held in Child Trust Funds (CTFs) that they are entitled to claim. These government-backed savings accounts, established for children in the UK, often go unclaimed by the time individuals reach adulthood.
In Wales alone, an estimated £83 million is currently lying unclaimed in CTFs, according to The Share Foundation, a charity that manages these accounts for children in care on behalf of the UK government. The Share Foundation operates a free service to help young people locate their lost funds.
Most CTFs were initiated by parents or guardians using a government voucher. Initial voucher amounts varied, with a base of £250 and a higher sum for low-income families. The government made an additional payment when the child turned seven, and family members were also permitted to contribute. In some instances, the Welsh government provided supplementary payments to the accounts of children residing in Wales.
For children whose parents or guardians did not set up an account, the UK government established CTFs on their behalf. Young adults between the ages of 18 and 23 are now being urged to investigate these accounts, as they may contain thousands of pounds. Kae, a performing arts student, shared his experience of discovering his CTF, stating, "I thought i'd get it automatically but I didn't hear anything. I thought the government would give it to me but I actually had to get it by myself." He successfully invested his funds in an ISA, planning for future home ownership.
Navigating the details of CTFs can be challenging because they can be managed by various providers. Kae initially faced difficulties in locating his account details, ultimately utilizing the Share Foundation's finder service. He emphasized the importance of proactive searching, advising, "Don't just leave it and do nothing because you might not receive anything if you don't look."