Eighteen to 21 year-olds are being urged by the government to check whether they have unclaimed savings in child trust funds.
According to HMRC, an average of £2,000 is sat waiting to be collected by almost 430,000 young adults in child trust funds, set up between 2002 and 2011.
“Many [...] are starting out in first jobs or apprenticeships, starting university or moving into their first home,” HMRC deputy chief executive Angela MacDonald said.
“Their child trust fund is a pot of money with their name on. It could make a real difference to their future plans.”
Some 5.3 million child trust funds are open, HMRC continued, in which £9,000 can be deposited tax-free each year, with the savings then available once the holder turns 18.
Though the scheme has subsequently been replaced, parents were granted vouchers from the government under the scheme which saw the government deposit funds into a child trust fund of their choice.
Given the vouchers expired after a year, the government opened accounts on behalf of those who had not claimed funds.
Years later, charity Young Enterprise head Sharon Davies explained that a disproportionate amount of the unclaimed savings are owed to those from disadvantaged backgrounds.
“[These] are the very people who would benefit most from these funds,” she said.
“The investment could be placed into an adult instant savings account or put towards driving lessons, education or starting a business.”
Accounts can be tracked down by filling in a form on the government website, accessed through the Government Gateway.