750,000 people are owed around £2,200 from HMRC

It’s thought that hundreds of thousands of people in Britain could be owed an average of around £2,200 by HMRC.

Letters are said to be getting sent out to those, let’s face it, very lucky, individuals as they might not even realise the cash is sitting there waiting for them.

This all comes down to Child Trust Funds (CTFs), the long-term, tax-free savings or investment accounts set up for kids born in the UK between 1 September 2002 and 2 January 2011.

These allowed parents to save up to £9,000 for their child every year, with the funds belonging solely to them, accessible once they reached their 18th birthday.

However, it’s thought that 750,000 of the accounts remain unclaimed with some children simply not aware they even exist or parents having forgotten they set them up in the first place.

The financial expert explained that HMRC will be sending letters. (BBC)

Personal finance expert Laura Pomfret appeared on BBC Morning Live where she explained that during that time bracket, the government gave parents a £250 voucher (and £500 for some low-income families) in order to put into savings or investments for their kids.

“And lots of things you didn't do as a parent, put it in, the government put it away for the family, and so many people have just forgotten about them,” she explained.

“The key figures here are quite striking because 750,000 accounts haven't been claimed. This is totalling £1.5 billion as we've kind of highlighted, and the average amount sitting in there, this is the average, is £2,200 because it went in at £250 or maybe £500, and then it's grown over time."

So, a whole bunch of young people over the age of 18 might have unclaimed funds waiting for them, that’s sat growing over their childhood.

Pomfret explained that HMRC is going to be sending letters to people aged 21 and over to let them know.

Your parents might have put money away for you with a government voucher when you were born. (Getty Stock)

“But if you are someone that's between 18 and I think it's going to be approximately 24 given the dates, you can proactively go and see if you can find your child trust fund if you got one, get a hold of it and guess it's yours and you could be someone who knows someone of that age,” the financial expert added.

“If you're a grandparent, if you're a parent, have a little think, ask them to check."

Regarding this, Angela MacDonald, HMRC's Second Permanent Secretary and Deputy Chief Executive, said: "Thousands of Child Trust Fund accounts are sitting unclaimed – we want to reunite young people with their money, and we're making the process as simple as possible. You don't need to pay anyone to find your Child Trust Fund for you, locate yours today by searching 'find your Child Trust Fund' on GOV.UK."