HMRC figures released this week reveal that 758,000 individuals have not yet accessed their child trust fund accounts, leaving an average of £2,242 per person untouched.

These long-term savings vehicles were established automatically for every child born between 1 September 2002 and 2 January 2011, with the government providing initial deposits to kickstart each account.

The scheme was the brainchild of Gordon Brown during his tenure as Chancellor, launching in 2005 under Tony Blair’s Labour government with the aim of creating a modest financial boost for young people reaching adulthood.

Each account received a £250 contribution from the state, while children from lower-income households or those in local authority care were given an additional £250, bringing their total government deposit to £500.

Parents and guardians were permitted to add up to £9,000 annually to these accounts, with many continuing to do so over the years.

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The programme was discontinued by the Conservative-led coalition in 2011, with approximately 6.3 million accounts having been opened during its six-year existence.

Hope Kerr-Williams, a 22-year-old apprentice based in Nottingham, discovered her account as a teenager and eagerly awaited her 18th birthday to access the funds, which had grown to £5,000.

“I was counting down the days until I could claim my child trust fund as I was planning my move to Sheffield,” Ms Kerr-Williams said.

“I used it to put a deposit down on my flat, pay the first month’s rent and buy essentials for my accommodation, which all adds up when you have to buy everything at once. I also bought a laptop for my course.”

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She added: “Having my child trust fund account saved me from going into an overdraft or borrowing money when I had a lot of expenses at the start of university.”

Those seeking to reclaim their funds are advised to search “find your child trust fund” on Gov.uk or use a free tool provided by The Share Foundation, which requires only basic personal details.

HMRC has cautioned against using third-party agents who charge for locating these accounts, with some demanding fees of £350 or even 25 per cent of the total value.

Antonia Medlicott, founder and managing director at Investing Insiders, said it can be “surprisingly easy” to access the funds.

She added: “You should never need to pay anyone to help you do so.”

Once located, account holders can either withdraw the money or transfer it to an adult ISA without affecting their £20,000 annual allowance.

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How to claim

To reclaim a Child Trust Fund, people first need to know which bank, building society or investment provider holds the account.

If they are unsure, HM Revenue and Customs offers a free online tracing tool that can identify the provider. Parents can use the service, and teenagers can apply themselves once they are aged 16 or over.

Users must sign in with a Government Gateway ID or GOV.UK One Login, then enter details such as name, address, date of birth, phone number and National Insurance number.

HMRC typically responds within three weeks. If more information is needed, it will get in touch by phone or post. Once the provider is confirmed, the customer can contact the firm directly to regain control of the account.

There is no need to pay a claims company. Some firms advertise tracing services for hundreds of pounds, but the official route is free.

Those aged 16 or 17 can locate their account but cannot withdraw the money until they turn 18. Parents applying for children under 16 will need either a unique reference number from previous paperwork or the child’s National Insurance number. If neither is available, the request must be made by post.