Child Trust Funds

Debate between Lord Wolfson of Tredegar and Lord Touhig

Monday 11th October 2021 Lords Chamber

[Lord Wolfson of Tredegar (Con)]

My Lords, the noble Baroness has put her finger on the point. What we have to do here is balance the need to protect vulnerable young adults—because that is what they are—with their desire and that of their parents and guardians to access small amounts of money speedily and efficiently. It is that balance which the consultation will be aimed at.

[Lord Touhig (Lab)]

My Lords, I declare my interest as a vice-president of the National Autistic Society. Seven months ago, I told the Minister that, for families of autistic youngsters seeking to access the child trust fund, the Mental Capacity Act code of practice was a barrier. Mr Justice Hayden in the High Court said that the wording of the guidance needed to be revisited. In reply, the Minister said that he had met Mr Justice Hayden and that the Government were looking to address this. Can he tell the House: whether the Government have completed their look, and can he give us an update?

[Lord Wolfson of Tredegar (Con)]

My Lords, the position with the Court of Protection is this: we did invite the court to look afresh at all its forms—that is a matter for the court and not the Government—and it declined to revise its forms. We want to do two things: first, consult on the small payments scheme, which I think really is the answer here; and, secondly, educate people. If people apply to the court before they turn 18, there is no time pressure and everything can be completed before the legal problem arises—which is at the point when the child becomes an adult and the parents, therefore, cannot access the money without an order of the court.

Child Trust Funds: Children with Learning Disabilities

Debate between Lord Wolfson of Tredegar and Lord Touhig

Thursday 25th March 2021 Lords Chamber

[Lord Wolfson of Tredegar (Con)]

My Lords, the noble Baroness is right that fundamentally this is about safeguarding the interests of the young person. On the Court of Protection, staff have been coming into the court throughout the pandemic to make sure that it can continue to function. They are putting in place new digital ways of working to streamline and simplify their processes and will ensure that there is as little administrative and procedural delay as possible.

[Lord Touhig (Lab) [V]]

My Lords, I declare my interest as a vice-president of the National Autistic Society. The needs of autistic youngsters differ: some lack capacity to make financial decisions, the capacity of others may fluctuate, but the need for parental support is vital. Yet the Mental Capacity Act code of practice says that family members should be appointed as welfare deputies in only the most difficult cases. This adds to the problem that parents of autistic youngsters have in accessing the child trust fund. Mr Justice Hayden in the High Court said that the wording of the guidance should be revisited; when are the Government going to do this?

[Lord Wolfson of Tredegar (Con)]

My Lords, I am grateful to the noble Lord for referring to Mr Justice Hayden, with whom I have met and who I know is personally committed to resolving this. It is fair to say that our understanding of all sorts of mental capacity is considerably greater now than it was in 2005, when the Act was passed, and in 1995, when the Law Commission reported on this issue. We are therefore looking to address this.

Learning Disabilities: Child Trust Funds

Debate between Lord Wolfson of Tredegar and Lord Touhig

Thursday 11th February 2021 Lords Chamber

[Lord Wolfson of Tredegar (Con)]

My noble friend is absolutely right that, because these funds are generally of relatively small amounts of money, it is all the more important that court procedures, which are designed to comply with the Mental Capacity Act 2005, are both accessible and proportionate. Rules and procedures are a matter for the courts, not Ministers, but I will do all I properly can to ensure that children and young adults with a learning disability can access what are, after all, their own funds.

[Lord Touhig (Lab) [V]]

My Lords, in December, some finance firms started to allow parents supporting a disabled youngster to access trust funds without a court order in exceptional circumstances. Some 30% of families benefit, but 70% are still required to go to court. Last week, in a meeting with the Investing and Saving Alliance, officials from the Minister’s own department refused to support this—why?

[Lord Wolfson of Tredegar (Con)]

My Lords, it is not for the Government to comment on the development of private sector proposals and the extent to which—and whether—they comply with the relevant legislation. We are working with all the financial trade bodies to ensure that parents and guardians of young people who do not have the required mental capacity to make the decision to access a child trust fund at age 18 are aware of both lasting powers of attorney and the important benefit of making an application to the Court of Protection before they reach 18 to avoid court fees.