Child Trust Fund: Everything You Need to Know in the UK
Thinking about your child’s financial future? A Child Trust Fund (CTF) could be a powerful tool. But what exactly is it, how does it work, and can your child still access the money?
In this guide, we’ll cover everything UK families need to know about the Child Trust Fund—from who qualifies, how to claim it, and what to do next. Whether you’re a parent, guardian, or young adult trying to access your own fund, you’re in the right place.
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What Is a Child Trust Fund?
A Child Trust Fund is a long-term tax-free savings account created by the UK government for children born between 1 September 2002 and 2 January 2011. The goal was to give every child a financial start at adulthood.
Here’s how it worked:
- The government gave an initial payment of £250 (or £500 for low-income families)
- Some children received an additional payment on their 7th birthday
- Parents, guardians, family, and friends could contribute up to £9,000 per year
The money belongs to the child and can only be accessed when they turn 18. Until then, the fund is managed by the registered person—typically a parent or guardian.
Who Was Eligible for a Child Trust Fund?
Your child qualified for a CTF if:
- They were born between 1 September 2002 and 2 January 2011
- You were eligible for Child Benefit at the time
If you didn’t open an account, HM Revenue & Customs (HMRC) did it for you and placed the funds in a default provider.
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How to Access a Child Trust Fund
Once the child turns 18, they can access and manage their fund. To do so, they’ll need to:
- Find out who the CTF provider is (use HMRC’s online tool if unsure)
- Provide proof of ID, such as a passport or driving licence
- Decide whether to withdraw the money, reinvest it, or transfer it into an ISA
If your child is 18 and unaware of their fund, they may have thousands sitting unclaimed. As of 2023, over £1.7 billion in Child Trust Funds remained untouched. Visit GOV.UK to track and claim yours.
What Happens at Age 18?
When the child turns 18:
- The fund legally transfers to them
- They can choose to withdraw or reinvest the money tax-free
- The account becomes a standard adult ISA if no action is taken
They’ll also receive a maturity letter from the provider, explaining their options. This transition marks a great time to talk to them about managing money and long-term planning.
If your child is legally vulnerable or struggles with financial decision-making, you may also want to explore whether a Lasting Power of Attorney is appropriate.
What If You Can’t Find the Child Trust Fund?
Don’t worry—there’s a process in place. Use the HMRC Find a CTF tool to locate the provider. You’ll need your child’s:
- Full name
- Date of birth
- National Insurance number
HMRC will usually respond within three weeks. If you’re acting on behalf of your child (e.g. under Power of Attorney), you’ll also need legal authorisation.
Child Trust Fund vs Junior ISA
Since 2011, Junior ISAs (JISAs) replaced Child Trust Funds. They work similarly but are open to any child under 18 without a CTF. If your child has a CTF, you can choose to:
- Keep contributing to the CTF (up to £9,000/year)
- Transfer it to a Junior ISA for more flexibility and potentially better rates
This can be part of a larger strategy to manage your family’s assets. Learn more about Inheritance Tax Planning to help protect those savings in the long run.
Can a Child Trust Fund Affect Inheritance or Benefits?
Generally, no. Child Trust Funds are separate from the parent’s estate and do not affect benefits. However, it’s important to plan carefully—especially if your child has special needs or receives means-tested benefits.
In such cases, using a Discretionary Trust or Vulnerable Person’s Trust can help ensure the money doesn’t impact their support. Our team can help you explore these options through our Care Fees Protection services.
How to Make the Most of a Child Trust Fund
Whether you’re still contributing to a CTF or your child is about to access the funds, here’s how to maximise the value:
- Review the interest rate: Older CTFs may pay lower returns—consider transferring to a Junior ISA
- Teach financial literacy: Help your child understand compound interest, saving goals, and investing
- Plan ahead: Use the CTF as a stepping stone toward home ownership, university costs, or long-term savings
And for even more long-term planning tools, visit our full pricing page for affordable estate and wealth protection services.
Key Takeaways on Child Trust Funds
- The Child Trust Fund was a government initiative for children born between 2002 and 2011
- Funds are now accessible to those turning 18, with over £1 billion still unclaimed
- You can manage, transfer, or reinvest these funds tax-free
- They don’t affect benefits or inheritance—when handled correctly
Whether you’re helping your child locate their account or you’re a young adult ready to take control, getting expert advice can help you make the most of this tax-free opportunity.
Get Personalised Support for Your Family’s Financial Future
If you’re unsure how to access, protect, or plan around a Child Trust Fund, you don’t need to figure it out alone. Our friendly, expert team can walk you through your best options and help you make informed, confident choices for your family’s future.
Book a free consultation now and take the first step toward smarter, stress-free planning.