Hundreds of thousands of young people still have unclaimed cash sat waiting for them, because government trust funds were opened in their name and then forgotten about.

HM Revenue and Customs says almost 430,000 18-21 year-olds have an unclaimed Child Trust Fund – worth on average £2,000 – and it is urging them to come forward and get their money.

Child Trust Funds were long term, tax-free savings accounts set up for every child born between September 1, 2002 and January 2, 2011.

To encourage future saving - and to start the account – each child was also handed an initial deposit of at least £250 from the government.

And if a parent or guardian was not able to set up the account for their child, the HMRC opened it on a youngster's behalf to ensure as many babies as possible took up the offer.

With the savings accounts maturing when a child turns 18, eligible teenagers now in early adulthood without access to their account could find savings are waiting for them worth an average £2,000 says HMRC.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, explained: “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.”

There are currently 5.3 million open Child Trust Fund accounts.

Teenagers aged 16 and over can take control of their own fund, although money can only be withdrawn when they turn 18.

Since September 2020 – when the oldest children enrolled into the scheme turned 18 – more than 500,000 matured accounts have been claimed or transferred into an ISA for future use. But hundreds of thousands of others have yet to be reclaimed by account holders.

Finding a Child Trust Fund

HMRC can help you find a Child Trust Fund if you are over the age of 16, or you are the parent or guardian of someone under the age of 18 looking for their account.

Those looking for an account can either use an online government form or request the details to be sent in the post.

Information including your National Insurance number, full name, address and date of birth will all be required to help staff begin the search to track down an unclaimed account.