760,000 matured Child Trust Funds worth £2,000 each remain unclaimed
HM Revenue and Customs data shows that 760,000 matured Child Trust Funds worth an average of £2,000 each remain unclaimed. The Financial Conduct Authority warned young adults against paying third-party claims firms for free tracing services.
Middlemen profit on forgotten pots
Around 6.3 million Child Trust Funds were opened for children born between September 1, 2002, and January 2, 2011, with existing accounts continuing to mature until 2029.
Commercial tracing companies, frequently advertising on social media, charge up to £400 or take a percentage cut of payouts to locate these pots, with some even charging recurring monthly subscriptions.
However, account holders aged 18 or older can trace and access their funds for free through the government online portal.
“You don’t need to pay someone else to claim what’s rightfully yours,” FCA Director of Insurance Chris Knight said, warning against handing savings over to middlemen.
Regulatory loopholes and lost contact
Because tracing services generally fall outside activities requiring FCA authorisation, commercial operators are not subject to the regulator's fee caps, leaving consumers unable to refer disputes to the Financial Ombudsman Service.
In response, the FCA has opened a broader review into the sector, scheduled to report next year.
The inquiry will examine why providers lose contact with young adults at age 18, whether firms deliver fair value under the Consumer Duty, and how to eliminate access barriers for vulnerable individuals.
A regulatory void exploited
Public warnings cannot compensate for leaving third-party tracing services outside the regulatory perimeter.
Dormant pots worth £1.5 billion remain an easy target because providers fail to maintain contact with beneficiaries.
Without mandatory outreach rules, young adults will keep paying extractive fees for free services.