Child Trust Funds: Children with Learning Disabilities

Lord Young of Cookham Excerpts

Thursday 3rd December 2020 Lords Chamber

Asked by

[Lord Young of Cookham]

To ask Her Majesty’s Government what plans they have to facilitate access to Child Trust Funds by children with learning disabilities.

[Baroness Scott of Bybrook (Con)]

My Lords, children with learning disabilities might not have the mental capacity to manage their finances and might need someone to do this on their behalf. Parents need legal authority to access funds on their adult children’s behalf and might need to apply to the Court of Protection. This is an important protection set out in the Mental Capacity Act 2005, and the Government are taking steps to improve the support available to parents in this position.

[Lord Young of Cookham (Con)]

My Lords, last March the Telegraph drew attention to the problems facing 150,000 children with child trust funds who cannot access their cash when they are 18 because of their disability and whose parents have to go to the Court of Protection—a cumbersome and time-consuming process involving 47 forms and 100 questions. Will the working group that was announced yesterday by the Minister look at the alternative system of appointees used by the Department for Work and Pensions to pay exactly the same group of children, which is far quicker, simpler and cheaper?

[Baroness Scott of Bybrook (Con)]

The noble Lord makes a very interesting point. I know that the Ministry of Justice is looking at and working on this. I have just heard that the DWP is, in fact, joining the working group, but the DWP appointees procedure does not extend to property and assets of the individual. It deals solely with government benefits. Extending the appointees scheme to include child trust funds would not be appropriate as it is at the moment, as it would not provide the protections currently delivered by the Mental Capacity Act.