Adults Lacking Mental Capacity: Child Trust Funds

Lord Young of Cookham Excerpts

Wednesday 28th October 2026 Lords Chamber

Asked by

[Lord Young of Cookham]

To ask His Majesty’s Government what progress has been made in enabling access to Child Trust Funds on behalf of adults who lack mental capacity.

[The Parliamentary Under-Secretary of State, Ministry of Justice (Lord Lemos) (Lab)]

My Lords, the Government are considering all potential options to resolve the issue of access to child trust funds. The round table held in July, hosted by my noble friend Lady Levitt, provided valuable perspectives on all options, and officials are moving forward with this work. The Government cannot endorse the banks’ exceptional processes. It is not consistent with the framework established by the Mental Capacity Act 2005 and the common-law principles that underpin it. However, we recognise the need to find a solution to this problem so that the money can reach those who own and need it.

[Lord Young of Cookham (Con)]

My Lords, I am grateful for that reply. Some £250 million is locked up in child trust funds, built up by children who are now adults but have a learning disability. The Government insist that the only way that these sums can be unlocked is by going through the Court of Protection, a cumbersome and at times expensive process that can take between six and 12 months. This deters many applicants and so the benefits are forgone. Will the Minister transform the lives of some 80,000 young people by building on the excellent work of his predecessor, the noble Baroness, Lady Levitt, who recognised that the present system was not fit for purpose, and promote quick and easy access to these funds to bring to an end a manifest injustice?

[Lord Lemos (Lab)]

I thank the noble Lord. We understand the seriousness of this problem and remain committed to resolving this long-standing issue of access to child trust funds for young adults who lack mental capacity. This is a high priority for Minister Richards, who has engaged extensively with stakeholders and wants to move quickly towards a practical solution. The Government are very hopeful of making progress in the coming weeks.