£2,600 each, sitting behind a court process, for up to 126,000 young adults
What happened
On 3 November 2026, the government announced plans to change how families can get at a particular pot of money: Child Trust Funds belonging to young adults who lack the mental capacity to make financial decisions. Child Trust Funds were set up in 2005. The idea was to give children a small financial boost as they reached adulthood. Money was paid in by government, and families could add to it. The account becomes the young person's own at 18. The problem is what the scheme never planned for. If an 18-year-old cannot manage their own finances because of a learning disability or another condition affecting mental capacity, there was no straightforward way for anyone to access the money on their behalf. Instead, families had to apply to the Court of Protection. That process is complex, slow and can be costly. Under the new plans, parents and carers are expected to be able to go directly to the Child Trust Fund provider instead. The government estimates this affects between 63,000 and 126,000 young adults. The Economic Secretary to the Treasury, the Rt Hon Lucy Rigby KC MP, said the accounts are "worth on average £2,600 each". Justice Minister Jake Richards said: "Young people who lack the mental capacity to make financial decisions should be able to access their savings as easily as possible - especially when this money was put aside by loved ones to help them take their first steps into adulthood." He described it as "simply an injustice that we're finally putting right". The announcement comes from the Ministry of Justice and HM Treasury jointly. Campaigners, disability charities and the financial services sector will help shape the new process.
Why this matters
Imagine the position families have been in. Your child turns 18. There is money in their name that you or their grandparents put aside years ago, specifically to help at this moment. You cannot get to it. To get to it, you must apply to a court to be formally appointed to manage your own adult child's financial affairs. For many families, the cost and complexity of that process is out of proportion to the sum involved. If an account holds £2,600, spending months and potentially hundreds of pounds on a court application to release it feels absurd. Some families simply gave up, and the money sat untouched. The government's own language here is unusually direct. It calls this an "injustice" and says the reform follows "years of campaigning and legal difficulties faced by families". That phrasing matters: this change did not come from nowhere. Parents, disability charities and campaigners pushed for it, repeatedly, for a long time. There is a wider point too. Mental capacity law exists to protect people, and that protection is genuinely important - it stops money being taken from people who cannot defend their own interests. But protection designed for large estates can become a barrier when applied to a modest savings account. Getting that balance right is the hard part of this reform, which is why the details of the new process matter as much as the headline.
What the evidence actually says
Being precise about the status of this is important, because families have been disappointed before. This is an announcement of plans. The government says "new legislation will be introduced". That means a change in the law is intended, not yet made. There is no date given for when families will be able to walk into a provider and access an account. The numbers are estimates and they come with a wide range: 63,000 to 126,000 young adults. A gap that wide tells you something honest - nobody knows exactly how many people are affected, because there is no register of Child Trust Fund holders who lack capacity. The figure is modelled, not counted. The £2,600 average is also an average. Some accounts will hold considerably less, and some more, depending on how much families added over the years and how the investments performed. It is also worth noting what the announcement does not say. It does not set out the exact safeguards that will replace the court process. The government says campaigners, disability charities and the financial services sector "will help shape the new process, protecting young people while pulling down barriers". That shaping has not happened yet. So the fair summary: a real and welcome change of direction, backed by two government departments, with the mechanics still to be designed and the law still to be passed.
Practical advice
If this affects your family, here is what is worth doing now. First, find the account. Many families have lost track. HMRC runs a free Child Trust Fund tracing service - search "find a Child Trust Fund" on GOV.UK. You will need the young person's National Insurance number and date of birth. Never pay a company to do this for you; there are firms that charge for what HMRC does free. Second, contact the provider and ask what their current process is. Some providers already have a simplified route for small balances in capacity cases, and practice varies. It is worth asking before assuming a court application is the only option. Third, do not start an expensive Court of Protection application purely because of this news, without taking advice first. If an application is genuinely needed for other reasons - for example, to manage benefits, a larger inheritance, or ongoing finances - that is a different situation. But if the Child Trust Fund is the only issue, it may be worth waiting to see what the new process looks like. A solicitor who specialises in mental capacity work, or a charity advice line, can help you judge that. Fourth, keep an eye out for the consultation or engagement work. The government has said charities and campaigners will help shape the process. Organisations such as Mencap have been active on this issue and are a sensible place to watch for updates. Finally, be careful of scams. Any announcement about unlocked money attracts people who will offer to "release" it for a fee. Legitimate access goes through the account provider, not through a third party who contacts you first.
What to know
On 3 November 2026 the Ministry of Justice and HM Treasury announced plans to let parents and carers access Child Trust Funds directly from providers, instead of going through the Court of Protection, where the young person lacks mental capacity to make financial decisions. An estimated 63,000 to 126,000 young adults are affected. Accounts are worth on average £2,600. This is a plan for new legislation, not a change already in force. No date has been given, and the safeguards replacing the court process are still to be designed with input from campaigners, disability charities and the financial services sector. In the meantime: trace the account free through HMRC, ask the provider what their current process is, take advice before starting a court application just for this, and treat anyone offering to unlock the money for a fee with suspicion. Sources: Ministry of Justice and HM Treasury, "Child Trust Fund injustice to end under Government plans", 3 November 2026, https://www.gov.uk/government/news/child-trust-fund-injustice-to-end-under-government-plans; GOV.UK, "Find a Child Trust Fund", accessed 4 November 2026, https://www.gov.uk/child-trust-funds/find-a-child-trust-fund; GOV.UK, "Make decisions on behalf of someone", accessed 4 November 2026, https://www.gov.uk/make-decisions-for-someone This article is for general information and is not legal, financial or medical advice. For questions about your own health or medicines, speak to a doctor, pharmacist or other qualified healthcare professional.
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