Young disabled people who lack the mental capacity to manage their finances will be given an easier way to access their Child Trust Fund savings under new government plans.
The reforms are intended to end a long-standing problem that has left thousands of families facing a complex and costly application to the Court of Protection to release money belonging to their adult children.
Child Trust Funds were introduced in 2005 to give children a financial boost when they reached adulthood. However, the scheme did not provide a straightforward way for 18-year-olds who lack the mental capacity to make financial decisions to access their savings.
The Government estimates that between 63,000 and 126,000 young adults could be affected by the issue. Under the proposed changes, parents and carers will be able to approach Child Trust Fund providers directly, rather than having to go through the Court of Protection.
The Government will work with disability charities, campaigners and financial services providers to develop the new process, including deciding who can access the money, what evidence will be required and what safeguards are needed to protect young people’s interests.
Contact, the charity supporting families with disabled children, welcomed the announcement, describing it as a major breakthrough following years of campaigning led by parent carer Andrew Turner.
Anna Bird, chief executive of Contact, said: ‘First and foremost, we want to pay tribute to Andrew Turner. His courage, dedication, and leadership have been the driving force behind this victory. Andrew’s work demonstrates what can be achieved when parent carers stand up to demand fairness for their children.
‘This commitment from the government is a huge moment of relief for families across the UK. For six years, parent carers have faced administrative brick walls trying to access money that rightfully belongs to their young adult children. We are delighted that Minister Jake Richards has listened and committed to the primary legislation needed to fix this once and for all.’
Turner himself said: ‘This bold move from the government is extremely positive news for tens of thousands of young people who have been locked out of their Child Trust Fund savings.
‘By removing the barriers that make it hard for people to invest in child savings schemes for disabled children, you also create the opportunity to build a stronger financial foundation for their future. A simpler process for accessing these savings will release millions of pounds of benefit. And it will help reduce the administrative burden on parents supporting a disabled child.
‘I am extremely grateful to Minister Richards and the government for their commitment to solving this long-running issue. I look forward to working with them to deliver a much-needed solution.’
The campaign, which was started by Renaissance Legal, received support from financial providers including One Family, Nationwide and Foresters Financial, as well as cross-party parliamentarians.
The Government plans to introduce an amendment to the Financial Services and Markets Bill to establish the new system. Further details will be set out in secondary legislation after parliamentary approval.
The Court of Protection will remain available as an alternative route for protecting the financial interests of adults who lack mental capacity.
Contact said it would continue working with families, ministers and financial providers to ensure the process is straightforward, affordable and properly safeguarded. It also called for clear interim guidance for families whose children turn 18 before the new legislation comes into force.
Photo: Colin Watts
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