Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 24 April 2023 to Question 181783 on Child Trust Funds, what assessment his Department has made of the effectiveness of its work in making contact with account holders of unclaimed mature Child Trust Funds.

Although primary responsibility for communicating with account holders and their parents lies with Child Trust Fund (CTF) providers, the government is committed to helping people access the savings they are entitled to and continues to explore new routes to reunite young people with their mature CTFs.

HMRC actively engages with the industry, other government departments, organisations such as the Money and Pensions Service, and youth focused charities to ensure that young people are aware of, and can access, their CTFs. HMRC also issues a range of communications and provides resources for key intermediaries such as the University and Colleges Admissions Service, who have greater influence and visibility amongst the CTF audience.

The government’s current plans will reunite most accounts with their owners, but there may be some cases where further action will be required. The government will monitor how many matured accounts remain open and judge when it is appropriate to intervene in other ways.

If a child lacks the mental capacity to manage their account when they turn 18, a person with responsibility must apply to the Court of Protection (or equivalents in Scotland and Northern Ireland) for a financial deputyship order. While responsibility for the process and legislation relating to mental capacity rests with the Ministry of Justice and devolved administrations, the CTF guidance on gov.uk provides specific references to mental capacity and links to the relevant bodies in England and Wales, Scotland, and Northern Ireland.