Parents of children who face losing out on their child trust funds because they are disabled or have severe learning difficulties will be able to manage their money without paying thousands in fees, under a new scheme.
Three in five disabled children currently cannot access their child trust fund savings because they are considered vulnerable.
Instead, parents must apply for a court protection order – which can take a year and involves a 47-page form, complete with thousands in legal fees.
These measures are in place to protect vulnerable people from fraud or abuse, but the costs often result in many people giving up, and the child losing access to their savings altogether.
The Government has now launched a consultation on a new system to eradicate the need for a court order.
A new streamlined process would allow a parent or family member to manage the Child Trust Fund or a Junior ISA, up to £2,500 – without permission from the Court of Protection.
Has your child been affected by this? Get in touch: emma.munbodh@mirror.co.uk
The move could help as many as 200,000 disabled children who are currently locked out of their own savings.
The proposed scheme would be run by banks and building societies who would be responsible for carrying out safeguarding checks.
This could include requiring medical evidence to certify the account holder lacks mental capacity to manage their own financial affairs, verification that funds will be used in the best interests of the account holder and proof that the money will towards goods and services as opposed to the applicant.
The maximum amount that could be accessed under the scheme would be £2,500 over a six month period.
Deputy Prime Minister and Secretary of State for Justice, Dominic Raab said: “I’m determined to reduce the obstacles families and guardians face when they are supporting vulnerable people who lack mental capacity.
“These plans will make it easier and less stressful to access small funds while maintaining vital safeguards to prevent abuse and fraud.
“It is essential that any change is considered carefully and based on evidence. I urge those with an interest to respond to this important consultation”.
In cases where longer term management of accounts is needed, families and guardians will have to apply for a deputyship through the Court of Protection if necessary.
Dan Scorer, at the learning disability charity Mencap, said: “Over the last year families of young people with a learning disability have highlighted the significant barriers and cost faced in accessing Child Trust Fund money for their loved ones.
“It is welcome action is being taken to consult on proposals for a more proportionate process where small amounts of money are involved.
“The complexity of the legal system is a recognised barrier and the aim of a simpler and quicker process, which still has appropriate safeguards, is welcome.”
Families who apply to the Court of Protection to access a CTF may be eligible for a refund on any fees they paid to access the account, you can read more on this here.
