Economy · Household finances · 8 November 2026
HM Treasury to simplify Child Trust Fund access for those lacking capacity
HM Treasury has announced new legislation to replace the Court of Protection process for accessing Child Trust Funds. Parents and carers will be able to go directly to providers for young people lacking mental capacity, the department said.
HM Treasury has confirmed that new legislation will be introduced to allow simpler access to Child Trust Funds for young people who lack mental capacity. The plans aim to replace the current requirement to use the Court of Protection, a process that campaigners have described as complex. Under the new rules, parents and carers will be able to go directly to Child Trust Fund providers to access savings.
The original scheme, introduced in 2005, did not provide a straightforward way for 18-year-olds lacking mental capacity to access their savings. Estimates suggest between 63,000 and 126,000 young adults are affected by this gap. The average value of these funds is £2,600. 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."
The Government will work with stakeholders, including disability charities and the financial services sector, to design the new process. This collaboration will focus on establishing safeguards and evidence requirements. The Court of Protection will remain available as an alternative route for those who prefer not to use the new direct access method.
Economic Secretary to the Treasury, Rt Hon Lucy Rigby KC MP, stated that the changes will help tens of thousands more young people connect with their Child Trust Funds. The announcement notes that the new process is intended to address a long-standing issue raised by campaigners and disability charities over the years.
Written by StreetOwl from HM Treasury’s own announcement. It was drafted by StreetOwl’s own model, every figure and quotation was checked by code against the announcement, and it was read and approved by Michael Rossi before it went up. It says what was announced, not what anyone should do about it.
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