UK government moves to simplify Child Trust Fund access for young adults lacking mental capacity

Traders Union
All News
Geopolitics & Trade
Child Trust Fund access reforms

Highlights

UK government to introduce legislation allowing parents and carers direct access to Child Trust Funds for young adults lacking mental capacity, bypassing the Court of Protection.
The amendment to the Financial Services and Markets Bill, with secondary legislation to follow, aims to help tens of thousands access accounts worth £2,600 on average.
Reforms expected to unlock millions of pounds, reduce administrative burdens for families, and maintain the Court of Protection as an alternative for complex cases.

Legislation plan and access changes

As reported by GOV.UK, the Government will introduce legislation to let parents and carers go directly to Child Trust Fund providers to access savings on behalf of young adults who lack the mental capacity to make financial decisions. The measure is set to replace a process that currently often requires families to apply through the Court of Protection, creating legal complexity and extra cost.

Child Trust Funds were introduced in 2005 to give children a financial boost at the start of adulthood, but the scheme did not provide a straightforward access route for account holders turning 18 who could not manage their finances independently. The Government says it will bring forward an amendment to the Financial Services and Markets Bill, with operational details to follow in secondary legislation after Parliamentary approval.

The new framework is being developed with campaigners, disability charities and financial services providers. Officials are exploring who will be able to access funds, what evidence will be required and what safeguards are needed to protect vulnerable young people without creating unnecessary administrative burdens.

Impact on families and the financial sector

Ministers say the reforms are intended to end a long-running barrier that has caused distress for families trying to access money set aside by relatives. Justice Minister Jake Richards says the legislation is designed to ensure young people are able to access savings that are rightfully theirs, while Economic Secretary to the Treasury Lucy Rigby says the changes will help tens of thousands reconnect with accounts worth £2,600 on average.

The Court of Protection will remain available as an alternative route for cases where formal protection of an adult's financial interests is needed. That means the planned scheme is positioned as a simpler access option for many families, rather than a full replacement for the court's role.

Support groups and campaigners say the change could unlock millions of pounds and reduce administrative pressure on parents and carers. Contact chief executive Anna Bird describes the move as a significant breakthrough after years of campaigning, while parent campaigner Andrew Turner says a simpler process could improve financial outcomes for disabled young people and encourage confidence in child savings schemes.

In our earlier article on internal Liberal Democrat divisions over Ed Davey’s tax-cut messaging, we examined how frontbench resignations exposed a broader argument about whether the party should chase electoral gains in affluent seats or prioritise fiscal restraint. We also outlined concerns that headline pledges — including positioning around the triple lock and tax cuts — could undermine policy credibility and revive memories of past controversies if the party moves closer to power.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.