According to a new report1, around 80,000 young people who lack the capacity to make financial decisions have been unable to access money in their Child Trust Fund (CTF).
Instead of being able to withdraw their money when they turned 18, families are having to pay to go through the Court of Protection (CoP), a lengthy and costly process. Ministry of Justice figures show that just 15 CTF accounts were accessed through this method in 2021. By 2029, the report suggests there could be up to £210m locked in CTF accounts, with some young people having as much as £75,000 in their account.
In 2021, the government announced plans to simplify the process for families of disabled children to withdraw money from CTFs, without the need to get permission from CoP.
Following a year-long consultation, earlier this year the government decided to retain the current process to ‘protect against fraud and abuse.’
1Renaissance Legal, 2023
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