The National Audit Office (NAO) has warned hundreds of millions of pounds in Child Trust Funds aimed at helping young people to grow their finances in early adulthood have not yet been claimed. The spending watchdog raised concerns that accounts are at risk of becoming forgotten or lost track of by those holding them - but the money will remain safe until claimed.
It said estimates indicate more than one-quarter of Child Trust Funds have remained untouched for a year or more after their owners turned 18. Earlier this year, consumer champion Martin Lewis warned nearly one million young people could be sitting on a small fortune and not even know about it.
The founder of MoneySavingExpert.com explained how a Child Trust Fund is a tax-free savings account which was set up by the UK Government for every child born between September 1, 2002 and January 2, 2011. The UK Government has paid more than £2 billion into Child Trust Funds for 6.3 million children born during this period.
