The reforms would allow parents and carers to approach savings providers directly, rather than navigating complex court procedures. According to reports, the Government intends to introduce legislation to remove these barriers while retaining safeguards for young people whose financial interests require protection.
New Rules Aim To Remove Barriers to Child Trust Fund Savings
Child Trust Funds are long-term, tax-free savings accounts established to provide young people with money as they enter adulthood. The scheme covered children born between 1 September 2002 and 2 January 2011, with account holders becoming eligible to access their funds at 18.
For young adults unable to manage their own financial affairs, accessing these accounts has proved considerably more complicated. Families have faced court procedures to obtain authority over savings intended for their children.
The Government’s proposed legislation would establish a simpler process, allowing parents and carers to contact CTF providers directly. The precise arrangements have yet to be determined.
According to the Manchester Evening News, ministers will work with relevant organisations to establish who should be permitted to access the accounts, what supporting evidence will be required and which safeguards should apply.
The Court of Protection will remain available as an alternative route for protecting the financial interests of adults who lack the capacity to make financial decisions. Justice minister Jake Richards described the existing difficulties as an injustice that campaigners had sought to address for years.
Economic Secretary to the Treasury Lucy Rigby confirmed that the average Child Trust Fund contains £2,600. She also told the House of Commons that almost three million young people had already accessed their accounts.
Rigby said she would introduce an amendment to the Financial Services Bill, enabling the Ministry of Justice to establish regulations governing the new arrangements.
Campaigners Welcome Changes After Six Years of Pressure
The announcement follows a prolonged campaign by families seeking simpler access to savings belonging to young disabled adults.
According to the Birmingham Mail, the charity Contact welcomed the Government’s commitment, describing the proposed legislation as a significant breakthrough after six years of campaigning led by parent carer Andrew Turner.
Anna Bird, Contact’s chief executive, said families had faced complicated and costly procedures when attempting to access money belonging to their children. She welcomed the Government’s decision and expressed the charity’s willingness to work with ministers, families and financial providers on the practical arrangements.
Turner also supported the announcement, arguing that removing administrative barriers would make it easier for families to access savings intended to support young disabled people.
He said the changes would release millions of pounds in savings and reduce the administrative burden on parents caring for disabled children.
The Government has not yet finalised the eligibility requirements or evidence needed under the simplified process. Those details will be considered as the legislation progresses. For now, the proposal represents a commitment to change how affected families access existing savings, rather than the creation of a new payment or benefit scheme.
