Some 750,000 people could be entitled to thousands of pounds in extra savings from Child Trust Funds

A new Labour Government taskforce has been established to help more than 750,000 young adults reclaim forgotten savings worth a combined £1.6billion.

The Child Trust Fund Taskforce brings together officials and account providers in a coordinated effort to reconnect people with money they may not realise belongs to them.

According to HM Revenue and Customs (HMRC), the average unclaimed pot stands at approximately £2,200, though some accounts could contain significantly more depending on investment returns and additional contributions made over the years.

Around 6.3 million Child Trust Fund accounts were originally opened under the scheme, designed to provide young people with a financial head start upon reaching adulthood.

Many account holders remain completely unaware these funds exist and are waiting to be claimed.

The scheme was established for children born between 1 September 2002 and 2 January 2011, meaning eligible individuals are now aged between 15 and 23.

These accounts were either set up directly by parents and guardians or created automatically by HMRC in cases where families did not open one themselves.

The funds were intended to give young people a financial asset upon turning 18, but the passage of time has meant many have simply forgotten about them.

Families frequently lost track of documentation after moving home, switching banks, or forgetting which provider held the account.

Andy Wood, tax expert at Tax Barrister UK, said: "The Child Trust Funds were often opened when they were babies, so it is very easy for families to lose track of the paperwork."

For those seeking to track down their money, the process should be relatively simple and entirely free of charge.

Mr Wood emphasised that young adults should avoid paying commercial firms to locate their accounts on their behalf.

He said: "The important point is that people do not need to pay someone else to find a Child Trust Fund for them.

"HMRC has a free online tool on GOV.UK, and that should be the first place to start. You will usually need your National Insurance number and date of birth, and HMRC can then help identify where the account is held."

The tax authority's tracing service allows users to discover which provider holds their funds without incurring any costs.