Child Trust Funds
Debate between Jeremy Quin and Philip Hollobone(9 months ago)
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Sir Jeremy Quin
I am grateful to the hon. Gentleman for his intervention. I will touch on the circumstances in Northern Ireland, but the fundamental point that unites many people in the Chamber is the desire to get easy access for parents to ensure they do not go through a court process, incurring fees, going through bureaucracy and requiring the support of GPs and social workers, to access what in many cases is an average of about £2,000. It is just too much bureaucracy and work when it is rightfully the asset of their child.
I know many people in the Chamber, not just the hon. Gentleman, take a close interest in the matter and have far more personal experience than me, as parents of children with disabilities. They know that parents of children with disabilities have so much to do. Often that involves struggling to get what is rightfully theirs from Government. That is one area in which Mr Turner felt that progress could be made. The good news is he found a groundswell of support from parents and charities. I would like to thank in particular Contact for its support and Renaissance Legal for its tireless campaigning. There is support from child trust fund providers and, indeed, from the Minister, and yet four years on, we are still nowhere near where we need to be.
I would like to set out the scale of the problem. I will set out what I recognise the Government have attempted to do to mitigate the problem and, lastly, what I believe they should do to go further and largely to resolve it for most families with disabled children. Let us be clear: it is not a new issue. It is very apparent and has been well rehearsed—not only as a result of my constituent’s brilliant campaigning. The Public Accounts Committee looked into the issue last year as part of its analysis of child trust funds. The PAC highlighted a wider problem with CTFs as a whole, but it drew particular attention to access for young people lacking the mental capacity to manage their own savings.
In these circumstances, a family or carer must gain legal authority to access funds that belong to the young person involved. To do so requires an application for a deputyship order to the Court of Protection in England and Wales. For England and Wales, the Ministry of Justice estimates that between 63,000 and 126,000 young people may not have the mental capacity to access and manage their matured CTF when they reach 18. All CTFs will mature between 2020 and 2029. Tens of thousands of young people will therefore be subjected to a prohibitively lengthy, costly and complex process simply to access what is rightfully theirs.
In relation to stand-alone CTF applications, there were just 70 court applications between September 2020 and May 2023, compared with about 27,000 accounts maturing over the same period. The Department, in its Treasury minute responding to the PAC, broadened the scope of applications to include not just stand-alone CTF applications but other assets. However, even on that basis, the number of applications for 16 to 21-year-olds between September 2022 and March 2023 was still only 312. Whichever statistic one chooses to cite, thousands of people are missing out on what is rightfully theirs, because we are not informing them of their rights, and if we do, the process is too complex and too costly for all but a few.
I know that the Minister is a decent man. He put aside time to meet Mr Turner and me on this issue, and I know that he has instructed the Department to engage. I know that he is keen to make it simpler for families and he has ensured that changes have been made. I acknowledge that the MOJ last year moved some of the application online, waiving the fees and creating a toolkit for parents. That is to be welcomed, and I believe it was introduced with excellent intent. However, the process still involves completing 12 forms, including the duplication of a number of forms, and 93 pages. This includes requiring time-pressured GPs or social workers to complete a 21-page mental capacity assessment, which not all are prepared to do. With all the pressures on the families of disabled young people and the associated cost of becoming a deputy, is it surprising that they do not prioritise accessing what are, on average, funds of about £2,000? However, that is £2,000 that could and should be used to the benefit of the disabled child.
I know that the Minister and his team wish to help further, and there is a means to do so readily at hand, already in use and absolutely capable of being advertised and delivered on. It could help to deliver tens of millions of pounds—actuarial analysis suggests up to £73 million—into the hands of those who desperately need it. I thank the chief executives of two child trust funds, OneFamily and Foresters UK, for talking me through their proactive approach, which puts their customers first. Those two funds account for more than half of all CTFs. Very commendably, those providers recognise the problem and are applying a common-sense and pragmatic approach to its resolution. That is in effect using the Department for Work and Pensions appointee scheme—a tried and tested system to enable families to manage their child’s benefit income. It provides adequate protection and is the obvious solution to unlock the savings of disabled young people.
Let us be clear: this is no free-for-all. The providers require evidence that the parent or guardian is a DWP appointee; they require identity checks and confirmation of the child’s capacity. This process is available only in relation to funds under £5,000, and complex cases may still have to go through the courts. However, it has enabled the providers to meet the needs of hundreds of disabled children. There is a problem. Despite following a DWP process, and despite the knowledge that were a DWP appointee to be acting fraudulently there would be far more at stake than a modest child trust fund, this sensible route is frustratingly not officially sanctioned. The financial institutions are commendably going on risk to allow access to the funds. They know that there are far more affected families out there, but as responsible, regulated entities, they do not believe they can advertise their willingness to help in this pragmatic way, which combines existing safeguards with swift access.
Those two leading institutions and others with a similar proactive mindset assist 900 families a year—a significant multiple of the number aided through the court route—but thousands still need support. I therefore have three requests for the Minister that would help to resolve this issue. Will he engage with the DWP to extend the appointee scheme and officially include savings held in CTFs? Will he engage with the finance industry to formalise what is already a successful industry process, and in doing so enable it to advertise that route so that families can take advantage of a simple scheme? Lastly, will he help families to secure basic information about their CTF provider if the account has been lost?
Mr Philip Hollobone (Kettering) (Con)
I commend my right hon. Friend for his superb speech. He has approached this debate in an extremely constructive fashion, with a common-sense, straightforward solution to the problem. We do not need to reinvent the wheel; we just need to apply common sense. Child trust funds are a wonderful advantage to many young people, but the most vulnerable are missing out. My right hon. Friend has outlined a way in which the Government can address the biggest part of this problem.
Sir Jeremy Quin
I am most grateful to my hon. Friend, who brings me, brilliantly, to my conclusion. I agree with him. Movement on those three issues will prevent thousands of unnecessary court applications, and reduce bureaucracy and cost for the parents of disabled youngsters. Above all, it would put to work funds that could make a real difference to young people who could really do with a little extra help.
Oral Answers to Questions
Debate between Jeremy Quin and Philip Hollobone(1 year, 3 months ago)
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Mr Philip Hollobone (Kettering) (Con)
The Minister for the Cabinet Office and Paymaster General (Jeremy Quin)
Civil service sickness absence data are published annually. The latest data indicate that an average of 2.3 working days were lost per staff year due to mental ill health for the year ending 31 March 2022.
Mr Hollobone
I understand that nearly three quarters of a million civil service working days were lost due to alleged stress and mental health reasons, and that that figure is 40% up on the year before. Of course those with genuine mental health needs need appropriate support but, given that many civil servants enjoy pay and pension packages way in excess of what many people can get in the private sector, what steps are the Government taking to ensure that only those with genuine mental health conditions are granted a leave of absence?
Jeremy Quin
I know my hon. Friend will be aware that there has been, in both the private and public sectors, a large spike in all sickness absence this year, because of course the comparative data were with the pandemic period. The good news for him is that the most recent figures from the Office for National Statistics show that sickness absence for all forms is lower in the most recent period in central Government Departments than it is in the private sector. We work with people who are unwell, using occupational health and employee assistance provision to ensure that they get the support that they need. We continue to wish to drive down the numbers of people who are off for ill health and to ensure that those who are unwell get the support that they require, but we work with them.
Oral Answers to Questions
Debate between Jeremy Quin and Philip Hollobone(2 years, 1 month ago)
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Jeremy Quin
The Government are absolutely committed to ensuring that there is always a path into the civil service for people who are high quality; we need really good, high-quality civil servants. That is absolutely our priority. I spoke earlier about apprentices, and my hon. Friend raises an important point regarding fast track. I can assure him we will make certain there are routes into the civil service for the high-quality public servants we all need to deliver high-quality public services.
Mr Philip Hollobone (Kettering) (Con)
The Minister for the Cabinet Office and Paymaster General (Jeremy Quin)
The Procurement Bill will enable simpler, more flexible procurement processes and increased transparency of planned procurements. These changes will make it easier for small and medium-sized enterprises to compete for and indeed win public contracts.
Mr Hollobone
When it comes to public procurement, I know that it is administratively easier for the Government to award contracts to bigger companies, as that involves a smaller number of contracts with a smaller number of companies. What happens is that SMEs then become subcontractors of those big national organisations but with reduced margins. It would really help local economies if SMEs could bid directly for Government procurement contracts, because that would raise margins at the local level and be a real boost to the local economy.
Jeremy Quin
Not only that: it would increase competition for the contracts, enabling us to have even better delivery of our services on a cost-effective basis. I have good news for my hon. Friend: the most recent stats, for 2020-21, showed that the Government were spending £9 billion indirectly with SMEs and £10 billion directly with SMEs. We are making a lot of progress in opening up procurement, but I assure him that the Procurement Bill will make the pipeline easier and more transparent—there will be one core set of data already in the system—which will enable SMEs to focus on the bid itself. It will also ensure more uniformity across Government regulations and process. That will help SMEs and help level them up.
Oral Answers to Questions
Debate between Jeremy Quin and Philip Hollobone(2 years, 8 months ago)
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Jeremy Quin
The events of the last few weeks show the critical importance of having the right kit in the hands of our armed forces. On many occasions the need can be met by British supply, but I would not write off the kit we can procure from our US and NATO allies, nor would I wish them to write off the prospect of buying kit from us. We are part of an alliance, and I am convinced that our approach of supporting British industry, supporting British investment and supporting capability through the defence and security industrial strategy, while keeping a weather eye on what else is available to ensure our armed forces are well armed, is the right one.
Mr Philip Hollobone (Kettering) (Con)
Govia Thameslink and Network Rail
Debate between Jeremy Quin and Philip Hollobone(8 years, 9 months ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Mr Philip Hollobone (in the Chair)
Order. If Mr Quin will allow me 30 seconds at the end, I will be able to put the motion to the House.