Mental Capacity Act 2005: Small Payments Scheme

Lord Blunkett Excerpts

Thursday 2nd March 2023 Lords Chamber

[Lord Bellamy (Con)]

My Lords, the Government are extremely reluctant at the moment to confuse two things. One is the processes by which the DWP works, and the other is the legal process by which an adult lacking capacity can have somebody else act on their behalf. That is a job for the Court of Protection. It is not just a question of child trust funds, although that is an important issue. This can go on throughout a child’s life, and it is quite likely that a child lacking capacity who reaches the age of 18 will continue to lack capacity for many years to come, and there will be important decisions to take. That really should be supervised by the Court of Protection and not by the DWP.

[Lord Blunkett (Lab)]

My Lords, it has been a privilege to work with the noble Lord, Lord Young of Cookham, on this important issue. When I led on the implementation of the child trust fund prior to the 2005 Act, we never foresaw that this situation would arise. Is it not a scandal that the cost to the financial institutions should take priority over the cost to these young people, who cannot access their funds? We understand about the Mental Capacity Act and understand the dangers and the safeguards necessary. But, after what has happened with the magistrates’ courts over the issue of pre-payment meters, can anybody really believe that the court system should take precedence over personal support to parents and young people?

[Lord Bellamy (Con)]

My Lords, it is not simply a question of cost to financial institutions. There is a whole range of problems here and an essential tension between protection against abuse and simplicity of process. In this area, where it is possible to have very different views, the Government feel that the principle established in the 2005 Act, placing responsibility with the Court of Protection, is right.