Child Trust Fund Accounts

Lord Blunkett Excerpts

Wednesday 19th March 2025 Lords Chamber

Asked by

[Lord Blunkett]

To ask His Majesty’s Government what discussions they have had with the providers of child trust fund accounts about increased access to those accounts for young people who have not yet claimed their deposit.

[Lord Blunkett (Lab)]

I beg leave to ask the Question standing in my name and offer a very warm welcome to my noble friend, who is making his first appearance at the Dispatch Box.

[Lord in Waiting/Government Whip (Lord Wilson of Sedgefield) (Lab)]

I thank my noble friend. The Government have extensive engagements with providers, industry and other stakeholders. HMRC is an active participant in the industry-led Child Trust Fund Maturity Working Group, which meets quarterly and discusses how individuals can be encouraged to claim their matured funds, and any issues the industry is facing. Treasury officials have also recently met with industry stakeholders to discuss issues relating to child trust fund access.

[Lord Blunkett (Lab)]

I thank my noble friend and realise that it is really difficult answering for the Treasury these days. We have had a very successful, but in one way fruitless, effort across this House. We have been supporting many charities, including Support SEND Kids, and Andrew Turner’s campaign—he is in the Chamber today. I thank everybody for that. Some 780,000 accounts have not yet been accessed, and in up to 80,000 of those cases, the young people are said to have incapacity. Somehow, we have to unlock these accounts, and we have to stop the Court of Protection blocking this. We have to ensure that financial institutions that are not playing the game do so. In the end, we need the support of the Department of Justice, the Department of Work and Pensions and the Treasury. My noble friend is new, and he can come at this fresh: give them a good kick for us, will you?

[Lord Wilson of Sedgefield (Lab)]

The Government are committed to reuniting all young adults with their child trust funds. HMRC has worked closely with child trust fund providers to encourage young people to track down their accounts. It has also issued a range of communications, including social media posts, and engaged influencers, who have greater visibility amongst young adults, and it continues to explore additional ways of communication. A free HMRC online tracking facility is also available. At the moment, the number of unclaimed matured accounts stands at 670,00.