Child Trust Fund injustice to end under Government plans
The UK Government will introduce legislation to simplify access to Child Trust Funds for young adults lacking mental capacity, replacing the Court of Protection process.
Young adults who lack the mental capacity to manage their finances will gain easier access to their Child Trust Fund savings under new Government plans. The reforms aim to remove barriers that have prevented families from accessing funds without costly court involvement. The changes follow years of campaigning by disability charities and affected families, who argued the existing process was unnecessarily complex and distressing.
The Government will amend the Financial Services and Markets Bill to enable a new process, allowing parents and carers to apply directly to Child Trust Fund providers. The scheme will cover an estimated 63,000 to 126,000 young adults, with safeguards to protect their interests while reducing administrative burdens on families.
Child Trust Funds, introduced in 2005, were designed to provide financial support for young people starting adulthood, but excluded those who lacked mental capacity. The reforms will ensure these individuals can access their savings, which average £2,600 each, without unnecessary legal hurdles or delays.
The Court of Protection will remain an alternative route for accessing funds, but the new process aims to streamline access for families. The Government will work with stakeholders to finalise details, including evidence requirements and safeguards, following Parliamentary approval of the amendment.