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Child Trust Funds

Inquiry

A Child Trust Fund (CTF) is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011, which they can access when they turn 18. The government paid more than £2 billion into CTFs for 6.3 million children born during this period. Most children received around £250 each from the government at the time their CTF was started, while those from low-income families or in local authority care received an additional £250.

But the NAO has said in its report hundreds of millions of pounds in Child Trust Funds (CTFs) set up by the government between 2005 and 2011 to help young people financially at the start of their adult lives has not yet been claimed.

Dame Meg Hillier MP, Chair of the Committee of Public Accounts, commenting on the NAO’s finding, said:

“HMRC have left £2 billion of taxpayers’ money sitting in Child Trust Funds for years while the organisations looking after the funds earned millions from them, yet HMRC does not know how many young people have lost track of their money.

“Its latest figures show almost £400 million had yet to be claimed, which in a cost-of-living crisis could be a vital lifeline to young people, particularly those from low-income backgrounds.

“HMRC needs to take Child Trust Funds off the backburner and proactively help reunite young people with their funds.”

The Committee will question senior officials at HMRC and executives at The Share Foundation. If you have relevant evidence to inform the Committee’s questioning please submit it here by 23:59 on Wednesday 3 May.

Please have a look at the requirements for written evidence submissions and note the Committee cannot accept as evidence material that has been published elsewhere.

This inquiry is no longer accepting evidence

The deadline for submissions was Wednesday 3 May 2023.

Reports, special reports and government responses

View all reports and responses
Sixty-Seventh Report - Child Trust Funds
Inquiry Child Trust Funds
HC 1231
Report
Response to this report
Treasury minutes: Government response to the Committee of Public Accounts on the Sixty-seventh report from Session 2022-23
HC 1231
Government Response
Correspondence from Jim Harra, Chief Executive and First Permanent Secretary, HM Revenue and Customs, re Following the hearing on Child Trust Funds on 18 May 2023, dated 7 June 2023
Inquiry Child Trust Funds
Correspondence

Oral evidence transcripts

View all oral evidence transcripts
18 May 2023
Inquiry Child Trust Funds
Witnesses HMRC, HMRC, The Share Foundation, and The Share Foundation
Oral Evidence
Down's Syndrome Association (CTF0001)

Contact us

  • Email: pubaccom@parliament.uk
  • Phone: 020 7219 5776 (general enquiries) | 020 7219 8480 (media enquiries)
  • Address: Public Accounts Committee, House of Commons, London, SW1A 0AA