Hidden savings worth thousands of pounds could be sitting unclaimed in accounts across the country, with new analysis indicating that hundreds of thousands of young adults may be unaware of funds set up in their name during childhood.
Research examining Financial Conduct Authority data suggests that approximately 760,000 matured Child Trust Funds remain unclaimed.
With each account containing an average balance of around £2,000, the total value of forgotten funds could reach approximately £1.52 billion.
Financial regulators have cautioned that some account-holders have paid steep prices to locate their money.
Several tracing firms have billed individuals as much as £400 simply to identify where their Child Trust Fund is held.
For someone with a typical balance of £2,000, such a charge would consume a fifth of their total savings.
The accounts in question were introduced as a long-term savings initiative for eligible children.
Approximately 6.3 million of these tax-advantaged accounts were established for young people born between September 2002 and January 2011.
In certain situations, relatives or official guardians established the accounts, while in other cases the tax authority created them automatically when no application was submitted.
Many individuals who have already reached adulthood may have no recollection of such an account ever being created.
Over the years, family circumstances change significantly.
Relatives who opened accounts when children were infants may have lost touch with the paperwork, while others were set up without the family’s direct knowledge.
Additionally, households frequently relocate or update contact information without notifying account providers, meaning correspondence from savings firms may never reach the intended recipient when the account-holder turns 18.
Regulatory authorities have specifically warned consumers about the risks associated with commercial tracing services.
The Financial Conduct Authority has documented cases where companies advertising through social media platforms charged substantial fees to help individuals locate dormant Child Trust Funds.
The practice of demanding £400 for mere account identification has drawn particular concern from regulators, who note that equivalent information is available at no cost through official government channels.
Individuals born within the specified date range should verify whether an account exists in their name.
The savings scheme no longer accepts new participants, though existing arrangements continue to mature.
Account-holders who have already celebrated their eighteenth birthday are entitled to withdraw funds, while younger individuals can still trace their accounts ahead of maturity.
Those seeking to locate their savings have straightforward options available.
Account-holders aware of their provider can make direct contact to enquire about their balance.
Individuals uncertain of which firm holds their money can access a complimentary online search tool operated by the tax authority to identify the relevant institution.
The official government service enables users to determine their provider without incurring any charges, and the tax authority has emphasised that current communications are being issued by post rather than through unsolicited electronic messages.
The financial regulator has initiated a comprehensive examination of the Child Trust Fund sector.
The review will assess whether providers have maintained adequate contact with account-holders approaching adulthood, whether existing accounts provide reasonable value to customers, and whether vulnerable young people encounter obstacles when attempting to access their funds.
Findings from this investigation are anticipated to be published during 2027.