Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the proposal by the Share Foundation to introduce a 'Default Withdrawal at 21' scheme for HMRC-allocated child trust funds.

The Government is grateful for the suggestion made by the Share Foundation of a way in which HMRC could develop a system of paying out the savings held in matured Child Trust Fund (CTF) accounts that have not been accessed by the account owners by the age of 21.

This proposal is complex and could not be implemented easily, or without allocating significant resources. The savings in these accounts belong to the account owner even if they are not aware of the account’s existence. For HMRC to close these accounts, obtain the savings in those accounts and transfer them with or without the owner’s consent would require careful legal consideration. This is quite apart from the operational systems and resources across Government departments and CTF providers that would be required to monitor the transactions.

The Government is committed to reuniting all young adults with their CTFs and recognises the importance of ensuring that young adults can benefit from these funds as they reach adulthood.

To that end, HMRC continues to work with CTF providers, industry representatives and stakeholders to explore ways of increasing the profile of CTFs and enabling account owners to be aware of and trace their accounts. HMRC has ongoing work with the University and Colleges Admissions Service to encourage awareness among student peer groups and a communications plan which targets young people. HMRC has recently amended gov.uk to reference The Share Foundation’s CTF account tracing service, providing an additional way for young people to trace their accounts.