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HM Revenue & Customs is contacting thousands of 21-year-olds as an estimated £1.6billion lies unclaimed in Child Trust Funds (CTFs). CTF's were brought in by the Labour government in 2005 in a bid to get parents saving for their children's futures.

They were offered to those born in Britain between September 1, 2002, and January 2, 2011. Under the scheme, parents and guardians would receive £250 vouchers from the government to open an fund. Children who were in poorer households or in local council care received twice that amount.

Money could either go into a cash savings account earning interest tax-free or an account investing in shares or funds.

HMRC would open an account for the child if the voucher had not been used in a year.

Stakeholder CTFs spread the money over different investments, with a yearly fee not exceeding 1.5%.

Up to £9,000 could be paid into accounts by parents and guardians each year.

When the child reached the age of 18, they could then access their pot.

But many CTFs have not been claimed, with 61% of unclaimed accounts HMRC allocated, according to figures analysed by the Share Foundation.

HMRC is writing to those with unclaimed CTFs to tell them who their provider is and how to get in touch with them.

The Department is warning people to beware unsolicited calls, emails or text messages which claim to be about a CTF.

That's because HMRC is only sending letters about them and not making contact in any other way.

If you receive a letter, you should contact the provider, not HMRC.

The provider should then guide you through the process for claiming your cash. It cannot be claimed by anyone aged under 18 though.

An account can still be managed by a CTF holder from the age of 16.