Source · Select Committees · Public Accounts Committee
Recommendation 13
13
Accepted
Child Trust Fund deputyship application process remains difficult, costly, and presents accessibility barriers.
Conclusion
Families have reported finding the deputyship application process difficult, time- consuming, and costly.18 Fees are waived if families are only applying to access a Child Trust Fund but there are other barriers – we heard examples of a six-page GP letter being needed as part of the process. The Down’s Syndrome Association told us that low awareness about banking safeguards among parents it supports is a barrier to accessing their children’s Child Trust Funds. It explained the fee waiver does not apply if the young adult is still in education, and that many families believe they also need to pay for services of a solicitor.19
Government Response Summary
The government agrees and states the recommendation is implemented, detailing ongoing cross-government work and the existing fee waiver for Child Trust Fund access applications. They also mention provisions for legal aid in Scotland and the application process in Northern Ireland, aiming to address reported difficulties and costs.
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation. Recommendation implemented 3.2 Supporting families of young people who lack the mental capacity to access funds in their matured Child Trust Fund (CTF) involves a number of government departments across the United Kingdom. While the government believes needs are best met, in the main, through the relevant responsible department overseeing a specific area, effective cross government engagement is key to supporting families. Although the MoJ and devolved administrations have responsibility for the government’s approach to mental capacity, HMRC has responsibility for legislation surrounding Child Trust Funds (CTF) to include specific reference to mental capacity and provided links to the relevant bodies in England and Wales, Scotland and Northern Ireland: what-happens-when-your-child-is-18. HMRC is also working with MoJ and Department for Work and Pensions (DWP) to explore ways in which the parents of children without capacity are informed, including adapting existing DWP communications. England and Wales 3.3 Once the MoJ became aware that some families of young people who lacked mental capacity were struggling to access their funds, MoJ took immediate action. On 1 December 2020, MoJ announced that parents or guardians of young adults without mental capacity could ask for a court fee waiver when seeking access to a mature CTF. 3.4 In November 2021, the MoJ consulted on a Small Payments Scheme as a potential mechanism for accessing a range of smaller value accounts. Responses indicated that the proposal would not allow easy and quick access. Rather, the best solution would be to improve the existing system. 3.5 Following a successful pilot in 2022, the application process for the Court of Protection (CoP) has undergone significant work to streamline and digitise it, reducing application processing times from 26 to 8 weeks. 95 percent of property and affairs applications are now made by an online process rather than on paper. A sample of a completed application form for a mature CTF has been placed on Gov.uk to assist parents and carers making an application. 3.6 A significant barrier to access is a lack of awareness of the Mental Capacity Act 2005 (MCA) and how and when to access funds. To directly address this MoJ launched an awareness raising programme, the first part of which was a new toolkit: Making Financial Decisions for young people: parent and carer toolkit (9 June 2023). The toolkit raises awareness of the MCA to help families of young people understand their rights and what they need to do in order to manage the finances of the young person without capacity and outlines the Court of Protection process. 3.7 The MoJ is working with The Investment and Savings Alliance (TISA) to promote the toolkit with parents and carers and investigating how information on the MCA can be made available in correspondence sent out by CTF providers in advance of the account maturing, to ensure parents and carers are able to engage in the legal processes as early as possible. 3.8 The MoJ is also working with the DWP to raise awareness of CTF through signposting on its website and through its communications with affected parents/ guardians. This work is at an early stage but is being actively pursued. In addition, MoJ is working with stakeholders in both the disability and finance sectors to raise awareness of the MCA and ensure that materials are available to support individuals to navigate the legislation. Scotland 3.9 In Scotland the ability to access a matured CTF of an adult lacking capacity is dependent on whether the account is cash or stocks and shares based. 3.10 Where the matured CTF is a cash account, the Access to Funds (ATF) procedure provides a simple way of accessing the funds. This involves an application to the Office of the Public Guardian (Scotland) rather than the courts. In February 2021, the Scottish Government agreed with the Public Guardian that the £91 fee for an ATF application would be waived where the application was to access funds in a CTF. This was publicised online and announced on the Public Guardian’s news page. 3.11 Where the matured CTF is a stocks and shares account, an application to the Sheriff Court for an intervention order or a guardianship order is required. Generally, a solicitor is involved in making such an application. Where the young person is eligible for legal aid, no court or OPG registration fees are payable however, means testing for legal aid is dependent on the type of order being sought. In the vast majority of situations in Scotland the legal aid system enables an adult with little capital (including funds in a matured CTF) to access those funds. Northern Ireland 3.12 Currently, where a person wishes to manage the financial and property affairs of an adult who lacks mental capacity, and no Enduring Power of Attorney has been registered, they must apply to the High Court to become a Controller. Where the Co