Vulnerable young adults to be given easier access to Child Trust Fund savings
Young adults with special educational needs and disabilities could be given easier access to savings held in Child Trust Funds under new Government plans.
By MoneySavingExpert
Young adults with special educational needs and disabilities could be given easier access to savings held in Child Trust Funds under new Government plans.
The changes would allow parents and carers to apply directly to the young person’s Child Trust Fund provider, rather than going through the Court of Protection.
Between 63,000 and 126,000 young adults in England and Wales are estimated to be affected. Many currently need a Deputyship Order to access the money on behalf of someone who cannot manage their finances.
The court process can cost families nearly £1,000 at the outset, before legal support and ongoing annual fees are included. In some cases, the costs can be higher than the amount held in the account.
Child Trust Funds were introduced in 2005 and matured when account holders turned 18. However, the scheme did not provide a straightforward route for young adults who lacked the mental capacity to manage their own money.
MoneySavingExpert.com founder Martin Lewis has campaigned for reform, including in a 2023 letter to the Government. The charity Contact and campaigner Andrew Turner have also called for changes.
The Government plans to introduce the reform through an amendment to the Financial Services and Markets Bill. The Bill still requires Parliamentary approval.
Further details are expected to cover who will be able to access the accounts, what evidence will be required and what safeguards will apply. The Government said it would work with financial firms, charities and campaigners to finalise the arrangements.
The Court of Protection route will remain available as an alternative.