Child Trust Funds

Debate between Lord Young of Cookham and Lord Wolfson of Tredegar

Monday 11th October 2021 Lords Chamber

[Lord Young of Cookham]

To ask Her Majesty’s Government when they will issue their consultation on access to Child Trust Funds by adults with a learning disability.

[The Parliamentary Under-Secretary of State, Ministry of Justice (Lord Wolfson of Tredegar) (Con)]

My Lords, since the House last considered this matter, I have been working closely with officials to deliver this consultation. We have had discussions with various stakeholders. Our work on drafting the consultation was completed just before the reshuffle. I have now discussed the issue with the new Secretary of State. I am hopeful that the consultation will now commence very shortly.

[Lord Young of Cookham (Con)]

I am grateful to my noble friend. In the 12 months since child trust funds matured, more than 10,000 children with learning disabilities have been entitled to the proceeds, but only a handful have negotiated the tortuous Court of Protection process advocated by the Government. Up to 1,000 have had funds released by financial institutions using a streamlined procedure not endorsed by the Government but likely to be in the consultation document. Does this not underline the need for urgency in amending the law, so that these children can get the funds to which they are entitled?

[Lord Wolfson of Tredegar (Con)]

My noble friend does not have to impress on me the need for urgency. I have been working hard on this matter since it was first raised. The problem with the industry scheme is not that it is not endorsed by the Government but that it is inconsistent with the Mental Capacity Act, a piece of legislation passed by Parliament.

Child Trust Funds: People with a Learning Disability

Debate between Lord Young of Cookham and Lord Wolfson of Tredegar

Tuesday 22nd June 2021 Lords Chamber

[Lord Young of Cookham]

To ask Her Majesty’s Government whether they will facilitate access to Child Trust Funds by people with a learning disability.

[The Parliamentary Under-Secretary of State, Ministry of Justice (Lord Wolfson of Tredegar) (Con)]

My Lords, the Mental Capacity Act 2005 provides a process to obtain legal authority to access matured child trust funds. We are working with stakeholders to examine the case for legislation to enable third-party access to smaller balances without the need to obtain the form of legal authority currently required under the Act. This is a complex issue; we intend to bring forward a proposal for consultation as soon as possible after the Recess.

[Lord Young of Cookham (Con)]

My noble friend has described as “absolutely unfortunate” the current position, whereby access to child trust funds by those with a learning disability has to be through the Court of Protection. This time-consuming and intimidating process is denying much-needed funds to vulnerable people. While he proposes to change the law, as he has just said, he has told me that this might not happen before December. People should not have to wait that long, so may I urge him to make much faster progress?

[Lord Wolfson of Tredegar (Con)]

My Lords, as I have said, we intend to launch the consultation as soon as possible after the Recess. This is a complex issue: as I have said before in this House, it is not limited to child trust funds. It goes beyond those funds and includes, for example, junior ISAs. We need to ensure that all factors, such as scope, simplicity and security of a small payments process are considered and accounted for. We are engaging with stakeholders across the financial services industry to make sure that the consultation is as smooth and effective as possible.

Child Trust Funds: Children with Learning Disabilities

Debate between Lord Young of Cookham and Lord Wolfson of Tredegar

Thursday 25th March 2021 Lords Chamber

[Lord Young of Cookham]

To ask Her Majesty’s Government what progress they have made towards enabling children with learning disabilities to access their Child Trust Funds.

[The Parliamentary Under-Secretary of State, Ministry of Justice (Lord Wolfson of Tredegar) (Con)]

My Lords, since my noble friend’s last Question on this matter six weeks ago, I have met ministerial colleagues and Members of the other place. I have considered the legal issues that arise. I have also met the acting president and vice-president of the Court of Protection. While court processes are a matter for the judiciary, I have been assured that child trust funds and the application forms will be on the agenda of the next Civil Procedure Rules Committee meeting to be held on 20 April.

[Lord Young of Cookham (Con)]

My Lords, I am grateful to my noble friend for his personal commitment to solving this problem, but he will understand my disappointment at his letter of 23 March, which says basically that no progress has been made since I raised this issue in January. Hollie Squire requires 24-hour care. Her mother Tammie is managing on £605 a month that Hollie gets from the DWP. If Tammie can be trusted with this money from the taxpayer, why can she not be trusted with Hollie’s money from her own trust fund without complex and time-consuming court procedures?

Learning Disabilities: Child Trust Funds

Debate between Lord Young of Cookham and Lord Wolfson of Tredegar

Thursday 11th February 2021 Lords Chamber

[Lord Young of Cookham]

To ask Her Majesty’s Government what progress they have made towards enabling access to Child Trust Funds by those with a learning disability.

[The Parliamentary Under-Secretary of State, Ministry of Justice (Lord Wolfson of Tredegar) (Con)]

My Lords, the Government have committed to making the process of obtaining legal authority to access a child trust fund more straightforward. A working group comprising the Ministry of Justice, the Treasury, HMRC and the Department for Work and Pensions has met several times to consider what more can be done, and it has also met the Investing and Saving Alliance, the Financial Conduct Authority and the Money and Pensions Service. The Court of Protection Rules Committee is reviewing its application forms and considering issues raised by campaigners.

[Lord Young of Cookham (Con)]

I am grateful to my noble friend, who has only recently inherited this pressing problem. I hope that he can help the thousands of families who cannot access child trust funds without a lengthy and at times intimidating procedure. On 3 December, when I last raised this, my noble friend Lady Scott said that the new working group would

“report back to the Minister in early January.”—[Official Report, 3/12/20; col. 828.]

What progress has been made? Might he promote a simplified and streamlined court procedure to access what are normally fairly small sums of money?

[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.