UK Writes 750K Young Adults About Forgotten £2,200 Funds

Imagine turning 21 and discovering you have £2,200 waiting for you that you never knew existed.

That's about to happen for thousands of young adults across the UK thanks to a new government campaign to reunite people with forgotten child trust funds. Between 2002 and 2011, the government deposited at least £250 into savings accounts for every newborn, with low-income families receiving double that amount.

The funds grew tax-free over the years, and young people became eligible to withdraw them at age 18. But here's the problem: an estimated 750,000 young adults have no idea their accounts exist, leaving £1.5 billion sitting unclaimed.

Two-thirds of the six million children who received these accounts are now over 18. Yet many lost track of the funds as families moved, changed contact details, or simply forgot about the accounts opened nearly two decades ago.

The government is now taking action by writing to all 21-year-olds with unclaimed accounts. "Some will have a couple of thousand pounds sat there that would really help them as they begin adult life," said Lucy Rigby, economic secretary to the Treasury.

The Ripple Effect

This money could make a real difference for young adults just starting out. Whether it's a deposit for their first apartment, funding for education, or seed money for a business idea, these forgotten funds represent genuine financial support at a crucial life stage.

The Share Foundation, a charity helping people locate their trust funds, has welcomed the campaign but wants the government to go further. They're pushing for automatic releases when account holders turn 21, which could immediately deliver £286 million to young people.

Finding a lost child trust fund is surprisingly easy. The government warns against third-party companies that charge up to £350 or even 25 percent of the account value for this service. Instead, young adults can search "find your child trust fund" on Gov.uk or use the free approved tool from the Share Foundation with just a few basic details.

Every young person receives information about locating their fund with their national insurance notification before turning 16. Many just need a reminder that the money is there waiting for them.

These funds have since been replaced by junior ISAs, which work similarly but without the government contribution. For those lucky enough to have a child trust fund, though, this campaign means their head start in adult life is just one search away.