Child Trust Funds

Child Trust Funds (CTFs) are a form of tax-free savings account that were available to children born between 1 September 2002 and 2 January 2011.

The government contributed towards these funds which become available for beneficiaries to withdraw from their 18¹ birthday.

Over the course of the scheme, 6.3 million accounts were opened, and the government paid £2.0 billion into CTFs. As of April 2025, the market value of Child Trust Funds either not yet matured, or matured but unclaimed, stood at £7.5 billion.

Access issues

Beneficiaries of CTFs started to turn 18 in September 2020, and from then it has become apparent that many are either not aware they have a CTF or are unable to access their CTF.

This is partly because:

• HMRC set up many CTFs on behalf of children without their family’s awareness
• There were problems with how CTF providers kept in contact with children or parents/guardians throughout childhood
• Some beneficiaries do not know the identity of their provider as their CTF was sold to a different financial institution

Another issue is that some parents and carers have had difficulty accessing CTFs on behalf of young people lacking mental capacity.

Scrutiny and government action

These issues and others have been the focus of investigations by the National Audit Office and the Commons Public Accounts Committee.

The government outlined its steps to address these issues in its response to the committee’s report published in September 2023. It said it was confident that its current strategies are sufficient and proportionate to reunite beneficiaries with CTFs.

It also said it would re-evaluate the scheme, following criticism that it has not met its original policy objectives to help young people develop saving habits, understand the benefits of saving, and make better financial decisions.