More than 728,000 people across the UK are unknowingly entitled to an average payout of £2,212 each from forgotten Child Trust Fund (CTF) accounts, according to HMRC figures.
The Child Trust Fund was a government-backed savings scheme available for children born between 1 September 2002 and 2 January 2011.
Each eligible child received a tax-free savings or investment account, kick-started with a £250 voucher from the Government, with another £250 added at age seven. Families on lower incomes were given £500 at each stage. Parents could also contribute up to £9,000 annually.
The scheme was designed to help young people build a nest egg by the time they turned 18. However, many have since lost paperwork or simply forgotten about the accounts, leaving hundreds of thousands unaware they have money waiting for them.
Financial expert Martin Lewis has urged people not to be misled by third-party firms charging to recover the money. He warned that finding lost accounts is completely free through HMRC.
HMRC estimates the average forgotten Child Trust Fund is worth just over £2,000, though Money Saving Expert highlights that the exact amount varies depending on age, investment choices, and additional contributions.
More than five million accounts were originally opened, but research by Hargreaves Lansdown suggests that around one in six young people do not know they even have a CTF.
