HMRC is issuing letters to UK households offering a £2,200 cash boost. Thousands of 21-year-olds are set to receive a letter from the tax office reminding them they may have a forgotten or long-lost Child Trust Fund, worth an average of £2,200, as reported by Express.co.uk.
What is a Child Trust Fund?
Between 2002 and 2011, most children born in the UK were issued hundreds of pounds in tax-free savings by the government, placed into a Child Trust Fund. Parents could add more money if they wished, and the funds became accessible when the child turned 18.
Unclaimed Funds
As of April 2026, more than 750,000 Child Trust Funds remain unclaimed, with over £1.6 billion available, according to Money Saving Expert. HMRC is writing to all 21-year-olds whose funds are still unclaimed to remind them they have an account and can now access their money. The government targets those aged 21 and over because they are likely to have made some contact with HMRC, such as starting their first job.
Official Statement
Economic Secretary to the Treasury, Lucy Rigby, said: “Hundreds of thousands of young people in this country don’t know they have a CTF, let alone how to access it. Some will have a couple of thousand pounds sat there that would really help them as they begin adult life. I’m determined that those who have CTFs are made aware they have this money. Together, we will ensure funds from these Child Trust Funds can be accessed by young people to help give them the best start to adult life.”
Martin Lewis Warning
Martin Lewis’ Money Saving Expert has warned recipients of a Child Trust Fund letter to contact the fund provider directly, not HMRC. It stated: “Warning: You should always contact the CTF provider directly using contact information listed on their website. Don't contact HMRC to access your funds. You also don't need to wait for HMRC to contact you about your CTF as it's free and easy to locate yourself.”
The advice also cautions against using claims firms that charge hundreds of pounds for tracing lost CTFs. It added: “Some firms offer to trace lost CTFs and charge £100s for the service, targeting teens and young adults with ads online and via social media. But HMRC has warned that using a third-party firm is likely to take longer and that you will still need to provide the same information to the claims firm that you'd need to complete the search yourself.”
