Recommendation 14

Providers, the Ministry of Justice and HMRC are aware of the issue. Some providers have, at their own risk, allowed families of young people without the capacity to manage 14 Qq 26, 35; C&AG’s Report, para 8; HM Revenue & Customs, Annual savings statistics 2022, June 2022. See Child Trust Fund Tables, table 2: Subscriptions to CTFs. 15 C&AG’s Report, para 1.8 16 Qq 33, 38–39, 43; C&AG’s Report, paras 3.6, 4.10 17 Qq 50, 61, 79–80; C&AG’s Report, para 4.13 18 C&AG’s Report, para 4.13 19 Q 48–49, 51; CTF0001; C&AG’s Report, para 4.13 12 Child Trust Funds the fund themselves to access funds in a Child Trust Fund up to £5,000. The Ministry of Justice recently consulted on a scheme to allow easier access to small funds. Many respondents suggested allowing applicants to demonstrate their suitability to access a young person’s small funds, such as a typical Child Trust Fund, by proving that they have already been given authority by government to manage the same young person’s benefits or other accounts. The Ministry of Justice decided not to proceed with the proposals.20 HMRC emphasised to us that the owners of matured Child Trust Funds are adults, and the law needs to protect their interests, finding a balance between safeguarding vulnerable young adults and helping the people who have their best interests at heart to manage their assets. It told us that its guidance explains what people need to do.21 20 Qq 48, 51–52; Ministry of Justice, Mental Capacity Act: Small Payments Scheme: Consultation response; May 2023 21 Q 52 Child Trust Funds 13 2 Learning from the Child Trust Fund scheme Achieving the scheme’s policy objectives