HMRC is urging over 750,000 young people aged 18 to 23 to find their unclaimed Child Trust Fund accounts, which have an average value of £2,242.

These accounts, set up for children born between September 1, 2002, and January 2, 2011, are long-term, tax-free savings accounts that can be accessed once the account holder turns 18, with the option to withdraw or reinvest.

Young people can take control of their accounts at age 16, and the funds are held in banks or financial institutions, not directly by the government.

The Child Trust Fund scheme was phased out in January 2011 and replaced by Junior ISAs, but existing accounts remain accessible for those who wish to claim or manage them.

While new contributions stopped after the scheme ended, the existing accounts continue to be held in banks or savings providers.

Despite significant growth in investments, many young people have not claimed their funds, which means potential market gains are being missed.

Parents and guardians can request HMRC's help to locate missing Child Trust Funds through online or postal requests, provided they have the necessary identification details.

Experts emphasize that these unclaimed funds can be a vital financial resource for young people starting their financial journey, especially when savings can have a significant impact at a young age.

Claiming and managing these funds is important, with options such as transferring the money into an adult ISA or withdrawing it; transferring to an ISA does not count toward the annual £20,000 allowance.

The process to access these savings is quick and straightforward via the GOV.UK platform, helping young people gain financial independence.