By Sohaib Shams
The UK government will introduce legislation to simplify access to child trust funds (CTFs) for tens of thousands of young adults who lack the mental capacity to make financial decisions, eliminating the need for complex court procedures.
Legislation to Remove Court Process
Child trust funds are long-term, tax-free savings accounts for people born between September 2002 and January 2011, accessible at age 18. Currently, parents and carers of young adults lacking mental capacity must navigate the Court of Protection to release the money, a process campaigners have called costly and complicated.
Ministers Outline Reforms
Justice minister Jake Richards said the change addresses an injustice, allowing young people to access savings set aside by loved ones as easily as possible. Economic secretary to the Treasury Lucy Rigby said the amendment to the Financial Services Bill, due for its second reading next week, will enable the Ministry of Justice to create regulations for the new process. The average CTF holds about £2,600.
Campaigners Welcome Change
Anna Bird, chief executive of the charity Contact, said tens of thousands of young disabled people and their families have long faced a difficult process to access money that rightfully belongs to them. The government estimates the reforms will help between 63,000 and 126,000 young adults. The Court of Protection will remain available as an alternative route.
