Access to Child Trust Funds

Tuesday 3rd November 2026 Written Statements

[The Parliamentary Under-Secretary of State for Justice (Jake Richards)]

In 2005, child trust funds were created to give every eligible child a financial asset at the start of adulthood, with around 6.3 million accounts opened for eligible children.

However, when child trust funds were established, no specific provision was made for how the money could be accessed where a young person lacked the mental capacity to manage their financial affairs when they turned 18. This has meant that an estimated 63,000 to 126,000 young people have not been able to easily access and benefit from money that was set aside for them.

In those circumstances, families have had to go through what can be a lengthy and confusing process of getting a court order.

Parents and carers have campaigned for years to secure a fairer and more proportionate route to those funds. This Government have listened to these concerns and are determined to take action.

That is why today, the Economic Secretary to the Treasury, my right hon. and learned Friend the Member for Northampton North (Lucy Rigby) and I are announcing that we will legislate to finally end this injustice to create a new scheme to allow easier access to child trust funds once the account holder turns 18, so that young people lacking mental capacity can easily benefit from the money in their accounts. The Government will be introducing an amendment to the Financial Services and Markets Bill. Subject to parliamentary approval, the amendment will enable the creation of a new scheme through secondary legislation. This will allow suitable people such as parents and carers to access and manage a young person’s child trust fund where that young person lacks the mental capacity to do so themselves.

The new scheme will provide a straightforward and proportionate route to access, while retaining appropriate safeguards to ensure that account holders and vulnerable people are protected. It will uphold the principles of the Mental Capacity Act 2005, and its definitions of lack of capacity and of best interests.

We currently anticipate that a suitable person, such as a parent, will be able to apply directly to the providers of child trust funds to access the funds. We will work with campaigners, disability charities and the finance sector to develop the details of the scheme to strike the right balance between safeguards and ease of access. This will include considering who will have permission to access the funds through this scheme, the evidence that will be needed to access funds and any other proportionate safeguards needed to protect young people who lack capacity.

The scheme will cover England and Wales only, recognising that Scotland and Northern Ireland have their own processes to access low-value assets, including child trust funds.

This scheme will not replace the important work of the Court of Protection, and applications to the Court will continue to be available in addition to this scheme to protect the financial interests of adults lacking mental capacity.

Change is long overdue. This is an important step in enabling people who lack capacity to easily access their money, which is why I am proud to be leading this work with the Economic Secretary to the Treasury.

Further details of the scheme will be set out as the legislation progresses.

[HCWS443]