UK Parliament / Open data

Child Trust Funds

Proceeding contribution from Alex Cunningham (Labour) in the House of Commons on Tuesday, 19 March 2024. It occurred during Backbench debate on Child Trust Funds.

It is a special pleasure to serve under your chairmanship this afternoon, Ms Elliott. I pay tribute to the right hon. Member for Horsham (Sir Jeremy Quin) for securing this debate on behalf of his constituent Andrew Turner. I congratulate him on his detailed speech, which outlined very clearly the challenge before us.

I also want to comment on the speech from the right hon. Member for Kingston and Surbiton (Ed Davey). I am grateful to him for sharing his personal experience of engaging with the system with his son, John. He demonstrated a special empathy for other parents of children with challenging disabilities. He offered solutions, and I remind the House of his most important statement: that people are just after their own money. He also spoke of the need for a simpler system.

That point was repeated by the hon. Member for Devizes (Danny Kruger)—I have just found out how to pronounce his constituency properly, so I hope I did it justice this time—who lamented the fact that we no longer have the children’s trust fund, which was set up by the Labour Government. He tried to blame the right hon. Member for Kingston and Surbiton, but it was the right hon. Gentleman’s colleague in the Treasury—the same person who axed the hospital that was planned in my constituency. Health inequalities have widened ever since, and the hospital is not even on the Government’s new list. The hon. Member for Devizes confirmed that there is consensus in the Chamber that we need action: he said, “Simply give them the money,” which is a good thing for me to mention at the beginning of my speech.

Andrew’s fervent campaign to bring about change stems from the challenges faced by his family, who have come up against tremendous problems along the way as they have tried simply to get access to the money they saved for their son Mikey. We heard about the distress faced by Mikey’s family and others, and also about the deeply disturbing legal advice that Andrew received: that it would be easier and cheaper to wait until Mikey died, because a simpler process could then be used. I cannot find the words to describe the anguish I would feel in such circumstances.

Andrew has become an advocate for the many parents of children with disabilities who all too often come up against these barriers. I pay tribute to him and charities such as Contact for their hard work on this issue. I also thank the other parent campaigners—Nasreen Yasin, Claire Binney, Michele Creed and Ramandeep Kaur, as well as Rachel Dixon, John Roberts and their son, Joseph—for joining us today.

Under the fund introduced in 2005, every child born in the UK between September 2002 and January 2011 received up to £500 in Government vouchers as an incentive for their parents and guardians to open a savings account for them. That initiative was ditched by the coalition Government in 2011, when the junior ISA was created. Disabled children and those from low-income families received an additional amount to provide greater benefits in later life. The trust money was then locked away, and parents were able to add more to the account each year until the child turned 18. Again, as we have heard, parents of children who lack the mental capacity to manage their finances themselves when they turn 18 face making a deputyship application to the Court of Protection to access their child trust fund or junior ISA.

The Ministry of Justice estimates that between 63,000 and 126,000 young people may fall into that category, yet the Court of Protection approved only 15 applications in 2021. The Minister will be aware that Andrew wrote to the Lord Chancellor yesterday outlining the scale of the challenge. He highlighted that, since 2020, an estimated 31,488 disabled young people have been unable to access £72.4 million of child trust fund and junior ISA savings.

The Public Accounts Committee looked into this matter and highlighted reports of families finding the deputyship application process difficult, time-consuming and costly. Fees are waived if families are applying to access a child trust fund, but there are other barriers. The Committee heard that a six-page GP letter is needed as part of the process. The Down’s Syndrome Association said in evidence that low awareness of banking safeguards among the parents it supports is also a barrier to

accessing their child’s trust fund. It explained that the fee waiver does not apply if the young adult is still in education, and that many families believe that they still need to pay for the services of a solicitor.

I recognise that the Government have considered measures they hoped would address the problem over the years, but the legislation and processes put in place to support individuals and their families should be much more accessible. We need closer working between the finance industry and Departments to find a workable solution to this ongoing problem. That would have the potential to significantly increase accessibility, helping many more families to access savings locked in child trust funds and junior ISAs.

I agree with the statement from Una Summerson, head of policy and public affairs at Contact. She said that implementing a less restrictive approach is in the best interests of disabled young people. Disabled young people must be allowed to enjoy their savings like everybody else, and continuing to promote actions that fail to address this issue will simply perpetuate injustice. There is an opportunity to bring common sense into the debate and to commit to a new approach.

About this proceeding contribution

Reference

747 cc301-3WH 

Session

2023-24

Chamber / Committee

Westminster Hall
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