Yorkshire young adults missing out on £150m in unclaimed Child Trust Funds, charity warns

Young adults in Yorkshire and the Humber are missing out on more than £150 million in unclaimed Child Trust Funds, with nearly two-thirds of the money belonging to people from low-income backgrounds, a charity has warned.

Figures shared by The Share Foundation show that around 81,000 young people in the region, including more than 35,000 from low-income backgrounds, have yet to claim their funds and are missing out on money that is rightfully theirs.

The warning comes as new figures from the Office for National Statistics (ONS) show that more than one in four children (27 per cent) in Yorkshire and the Humber are living in poverty.

The Child Trust Fund scheme was set up to give young people born between September 1, 2002, and January 2, 2011, a financial foundation early in life. However, 15 years after the scheme ended, thousands remain unaware that the accounts exist.

Elle, an 18-year-old college student from Whitby, spent years searching for her Child Trust Fund alongside her sister. When she finally located it, she discovered £700 waiting for her.

“I will be using it to support me through university. It is honestly life-changing,” she said. “I really encourage other young people to start their search and reclaim the money that is rightfully theirs.”

The Share Foundation, which manages funds and helps young people save on behalf of the Department for Education, is calling on the Government to introduce the automatic release of HMRC-allocated Child Trust Fund money when recipients turn 21.

Across the North of England, the charity estimates that 230,000 young adults are owed £450 million, with 100,000 of those accounts belonging to people from low-income backgrounds.

“Today, child poverty is becoming an increasingly pressing issue,” said Gavin Oldham OBE, chair of trustees at The Share Foundation.

“To help break the cycle of deprivation, we have spent the last 14 years helping those from low-income backgrounds access Child Trust Funds they were not even aware existed.

“This is why these HMRC-allocated accounts particularly matter, because the proportion of low-income recipients is 70 per cent higher than among accounts opened by a child’s own family.

“There is still much work to be done, but these efforts are a starting point in providing essential support at a time when families need it most.”