Adults Lacking Mental Capacity: Child Trust Funds

Baroness Kramer Excerpts

Wednesday 28th October 2026 Lords Chamber

[Lord Lemos (Lab)]

The noble Baroness knows that, since 2020, various changes have been made to the Court of Protection framework to make this easier and cheaper to deal with. I will not answer her question specifically, because this work is actively under way, but I am very happy to set out exactly what the arrangements are for the Court of Protection. It is important to reiterate that the Mental Capacity Act is there to protect people’s rights. We do not want to undermine that in any way, and we will not, but we will seek a solution to this problem.

[Baroness Kramer (LD)]

My Lords, this House used the opportunity of the Financial Services and Markets Bill to send an amendment to the other place which would enable the FCA to, in effect, enable financial institutions to release these funds based on their existing knowledge of the relationship between the parents, guardians and young people, whom they know because for many years those parents and guardians have been managing large sums of public money on that child’s behalf. Will the Government please take that seriously as the Bill is addressed down the other end, because it gets us around the dynamic of having to make very extensive changes to the Mental Capacity Act and delivers a practical solution?

[Lord Lemos (Lab)]

I am well aware of the amendments that the noble Baroness put down on child trust funds and junior ISAs. It is fair to say that slightly different issues are involved in child trust funds and junior ISAs, but, as I say—and I hope she can take some reassurance from this—we have considered her amendments, which are now in the other place, and thinking about a solution which resolves the issue of principle here, which is that parents who care for their children in a loving and trusting way should be able to help those now young adults to get access to these funds.