Brits born in nine-year period urged to claim thousands of pounds

According to Sky News, there is an unclaimed £1.7bn belonging to 758,000 people, that is ready to be claimed since they have turned 18.

Averaged out, there is £2,242 per person waiting to be claimed.

However, incredibly most people have no idea these funds exist, according to The Share Foundation that traces lost funds.

This has led to one senior MP even calling for pay-outs to be made automatically, however the government has claimed this would be too complex and costly.

In fact, so many accounts have yet to be claimed, that HMRC were prompted to send out an alert on X calling for potential trust fund owners to claim their money.

HMRC’s message said: “Your child could have an average of £2,200 sitting unclaimed. If your child has recently turned 18, they may have a Child Trust Fund waiting for them.”

To find out whether you’re owed some money, the process in fairly simple, although there are a few requirements to fulfil first.

Those entitled to the money must be born between September 2002 and January 2011 and only the child can access the money once they turn 18.

The process is easier if the child or parent or guardian know which institution the account is housed in.

However, if that has been forgotten, HMRC can aid in tracking down the fund.

Details needed to track down a Child Trust Fund include, a National Insurance number, full name, address, date of birth and any previous names of the child in whose name the account is.

After supplying this information, it should take three weeks to receive a letter from HMRC detailing the fund provider.

This service is available solely to parents, guardians, or the named individual only if they are 16 years or older.

If the child was adopted or you were granted parental responsibility by a court, additional information may be required by HMRC.

Any interest on the money is tax free like an ISA.

However, no more deposits can be made into the account once the child turns 18, at which point the owner can take the money or transfer it into an adult ISA.

If the child does not claim the account after turning 18 it remains open, however, will not gain any more interest.

These Child Trust Funds were set up in 2005 by Gordon Brown when he was chancellor.

Upon announcing the scheme at the time, he said: “The CTF is designed to ensure that every child in our country has assets and wealth and that no child is left out and all children in Britain have a stake in the wealth of the nation.”

One person who discovered they had a money in a fund waiting was 20-year-old Latonya who discovered she had £955 in one these accounts.

Speaking to the BBC she said: “I think it’s a great plan to be honest.

“My college tutor told me about it but my brother is a year older and went to the same college and he wasn’t told about it so it’s luck of the draw who knows, who tells who.

“Especially with cost of living, getting it automatically when you didn’t know you had it could really give people a break that they need.”