Thousands of disabled young adults to unlock £2,600 in Child Trust Fund savings

Thousands of disabled young adults will find it easier to access savings that have been locked away from them for years under new Government plans, The i Paper can reveal. Legislation will be introduced to allow parents and carers to access Child Trust Funds (CTFs) on behalf of young people who lack the mental capacity to manage their own finances. CTFs, long-term savings accounts for children, could only be accessed once the child turned 18, but due a flaw in the system, parents of many disabled young people have struggled to access funds. The changes will make it easier for that money to be accessed, with the reforms expected to benefit between 63,000 and 126,000 young adults. It follows years of campaigning by families who have struggled to get hold of money that rightfully belongs to their children. In a joint statement, Economic Secretary to the Treasury Lucy Rigby and Justice Minister Jake Richards admitted the Government had been “slow to find a solution” to this problem. What are Child Trust Funds? CTFs were introduced in 2005 to give children a financial boost when they reach adulthood. They are tax-free, long-term savings accounts for children born in the UK between 1 September, 2002, and 2 January, 2011. The Government provided an initial contribution of £250 to £500 per child and the money could only be accessed once the child turned 18.. Around 6.3 million accounts were opened before the scheme closed to new applicants in January 2011. Around 827,000 matured CTF accounts remain unclaimed in the UK, HMRC data shows. However, the arrangements did not properly account for young people who lacked the mental capacity to make financial decisions independently. While other account holders could take control of their savings, there was no straightforward process for these families to access the money on their children’s behalf.Why have families faced difficulties? Under existing arrangements, parents and carers generally have to apply to the Court of Protection to gain authority to manage or access a CTF. The process can be lengthy, complicated and expensive, placing an additional burden on families already caring for young people with disabilities and additional needs. It has left thousands unable to access savings intended to help their children as they enter adulthood, despite parents often being responsible for supporting their financial interests. The issue has been the focus of a six-year campaign led by parent carer Andrew Turner, supported by disability charity Contact. Campaigners have argued that families should not have to go through a costly legal process to access relatively modest sums – around £2,600 each on average – that were put aside for their children. Ministers Rigby and Richards said in their joint statement: “Parents, carers and charities have campaigned for years for the government to right this wrong. They were right to do so. This was not an impossible problem to solve, yet the system was too slow to find a solution.” What is changing? Under the new legislation, parents and carers will be able to approach CTF providers directly to access savings on behalf of young adults who lack the mental capacity to manage their finances. The Government will work directly with disability charities, campaigners and financial services providers to design the new system. This will include deciding who can access the money, what evidence will be required and what safeguards are needed to protect young people’s interests. Rigby and Richards said: “We will create a new scheme through which we expect a suitable person, such as a parent or carer, to apply directly to a provider to access and manage the account on the young person’s behalf. “We are clear that simplifying access must not mean weakening protections for vulnerable young people. Any new system must ensure decisions are made in their best interests.” The Court of Protection will remain available as an alternative route where its involvement is needed to safeguard an adult’s financial interests, the Treasury confirmed. An amendment to the Financial Services and Markets Bill will be brought forward to enable the new arrangements, with further details to be set out. Millions in unclaimed savings Meanwhile, hundreds of thousands of other young adults remain unaware that they have CTF savings waiting to be claimed. HMRC figures published in September 2026 show that around 827,000 matured accounts remain unclaimed, together worth almost £1.9bn. Although these figures relate to a wider group of young people, they highlight the scale of the challenge in ensuring people can access money saved for them during childhood. Mr Turner has campaigned for changes for years. His son Mikey has a rare degenerative condition, and while a CTF provider helped the family gain access to the money eventually, Mr Turner wants the government to make the process easier for other families. “By removing the barriers that make it hard for people to invest in child savings schemes for disabled children, you also create the opportunity to build a stronger financial foundation for their future,” he said. “A simpler process for accessing these savings will release millions of pounds of benefit and help reduce the administrative burden on parents supporting a disabled child.”