Millions of young adults have unclaimed Child Trust Fund balances averaging £2,310

HM Revenue and Customs reports that approximately 827,000 individuals aged 18 to 24 have unclaimed Child Trust Fund accounts that have now matured, with an average balance of £2,310. The Child Trust Fund scheme, which provided tax-free savings for children born between September 1 2002 and January 2 2011, was discontinued in January 2011 and succeeded by Junior ISAs. These accounts are held by commercial banks, building societies and other savings providers rather than the government.

Holders can take control of the funds from age 16 and decide how to use them once they turn 18. HMRC has set up a taskforce and promotes a free gov.uk locator service to help people find their accounts, noting that about 500,000 young adults have used the tool in the nine months up to August. Those who know their provider can also contact them directly to claim or transfer the money.