London Daily

Focus on the big picture.
Thursday, Sep 04, 2025

Hundreds of millions of pounds placed into child trust funds at risk of being forgotten, warns spending watchdog

Hundreds of millions of pounds placed into child trust funds at risk of being forgotten, warns spending watchdog

The funds provide extra financial support to people when they turn 18, but many accounts are being left untouched for a year or more - while the government is being called on to ensure people "are aware of" their money.
Hundreds of millions of pounds placed into tax-free savings accounts which people can access when they reach adulthood are at risk of being forgotten by those holding them, the National Audit Office (NAO) has warned.

The spending watchdog said estimates show that more than a quarter of child trust funds (CTFs) have remained untouched for a year or more after their owners turned 18.

A CTF is a savings account for children born between 1 September 2002 and 2 January 2011, which they can access at the age of 18.

The funds help people financially in early adulthood - but the NAO is concerned that accounts are at risk of becoming forgotten or lost track of by the account holders.

It is unclear how many children and young adults are either unaware of, or unable to locate, their CTF, the NAO said.

Gareth Davies, the head of the NAO, said: "At a time of economic hardship for millions of people across the country, it is important the government does enough to make sure young people are aware of, and can access, their child trust funds."

The government paid more than £2 billion into CTFs for 6.3 million children born during the period.

Most children received around £250 each from the government at the time their CTF was started, while those from low-income families or in local authority care received an additional £250.

Many CTFs were invested in stocks and shares, with the total market value of CTFs standing at £10.5 billion at April 2021.

Some of this belonged to young people aged 18 and over who had not unlocked their accounts.

By April 2021, around 320,000 CTFs had matured in the seven months since the first CTF account holders reached 18 in September 2020.

Of these, 175,000 (55%) had been claimed by the account holders and the accounts closed, and 145,000 remained unclaimed.

Some £394 million was, by April 2021, yet to be claimed in matured CTFs belonging to young adults who had reached the age of 18, the NAO said.

The NAO said HM Revenue and Customs intends to incorporate CTFs into a communications campaign in 2023.

The NAO estimated that CTF providers - including banks and building societies - could be earning collectively up to £100 million per year through charges on accounts.

Public Accounts Committee chair Meg Hillier said people need to be proactively reunited with their funds, adding that, in a cost of living crisis, the money could be "a vital lifeline to young people, particularly those from low-income backgrounds".
Newsletter

Related Articles

0:00
0:00
Close
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Queen Camilla’s Teenage Courage: Fended Off Attempted Assault on London Train, New Biography Reveals
Scottish Brothers Set Record in Historic Pacific Row
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Pickles are the latest craze among Generation Z in the United States.
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
WhatsApp is rolling out a feature that looks a lot like Telegram.
Investigations Reveal Rise in ‘Sex-for-Rent’ Listings Across Canada Exploiting Vulnerable Tenants
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
×