Child Trust Fund injustice to end under Government plans

3 Nov 2026 02:24 PM

Young people lacking the mental capacity to make financial decisions will finally have easier access to their Child Trust Funds.

Young people lacking the mental capacity to make financial decisions will finally have easier access to their savings, ending a long-standing injustice that has created unnecessary barriers for families. 

Following years of campaigning and legal difficulties faced by families, new legislation will be introduced by the Government to allow simpler access to Child Trust Funds, replacing the complex and often costly Court of Protection process.  

The reforms are expected to allow parents and carers to go directly to Child Trust Fund providers to access savings, solving years of unnecessary anguish for an estimated 63,000 to 126,000 young adults. 

Child Trust Funds were introduced in 2005 to provide children a financial boost as they start adulthood, but the scheme made no provision for 18-year-olds who lacked the mental capacity to manage their finances without a straightforward way to access their savings.  

Campaigners, disability charities, and the financial services sector will help shape the new process, protecting young people while pulling down barriers that have frustrated families for years. 

Justice Minister, Jake Richards said: 

Young people who lack the mental capacity to make financial decisions should be able to access their savings as easily as possible – especially when this money was put aside by loved ones to help them take their first steps into adulthood. 

This is simply an injustice that we’re finally putting right and as campaigners have argued for years, change is long overdue. This legislation will ensure this group of young adults no longer face difficulty from accessing money that is rightfully theirs.

Economic Secretary to the Treasury, Rt Hon Lucy Rigby KC MP, said:

The changes that we’re introducing will help tens of thousands more young people to connect with their Child Trust Funds – worth on average £2,600 each.

I’m so pleased that we will finally ending this long-standing injustice and I’m grateful to everyone who has worked with us to make this happen.

The Government will work with various stakeholders to explore how the new process is designed, including who can access funds, what evidence is required and what proportionate safeguards are necessary to protect young people who lack mental capacity without creating unnecessary and costly red tape. 

The scheme won’t replace the important work of the Court of Protection, which will remain available as an alternative route to protect the financial interests of adults lacking the mental capacity to make financial decisions. 

The Government will bring forward an amendment to the Financial Services and Markets Bill to enable the new scheme, with the details to be set out in secondary legislation following Parliamentary approval. 

Anna Bird, CEO of Contact says:

We warmly welcome the government’s commitment to legislate for a simpler way for young disabled people to access savings in Child Trust Funds. For too long, tens of thousands of young disabled people and their families have faced a complicated and costly process to access money that rightfully belongs to them.

This marks a significant breakthrough after six years of determined campaigning led by parent carer Andrew Turner, whom Contact has proudly supported. We congratulate Andrew and all the parent carers who have campaigned to bring about this change.

We thank the Minister, Jake Richards MP for listening and committing to act. We look forward to working with families, the government and financial providers to turn this commitment into a straightforward scheme with appropriate safeguards.

Andrew Turner, parent campaigner, said:

This bold move from the government is extremely positive news for tens of thousands of young people who have been locked out of their Child Trust Fund savings.

By removing the barriers that make it hard for people to invest in child savings schemes for disabled children, you also create the opportunity to build a stronger financial foundation for their future. 

A simpler process for accessing these savings will release millions of pounds of benefit and help reduce the administrative burden on parents supporting a disabled child.

I am extremely grateful to Minister Richards and the government for their commitment to solving this long-running issue and look forward to working with them to deliver a much-needed solution.