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| Teens with learning disabilities locked out of savings | |
| (about 2 hours later) | |
| Tens of thousands of young people are effectively being locked out of savings accounts they should gain access to as they turn 18. | Tens of thousands of young people are effectively being locked out of savings accounts they should gain access to as they turn 18. |
| People like James, who has about £7,000 in his savings account. | People like James, who has about £7,000 in his savings account. |
| There is no mechanism in place to allow parents of children with learning disabilities to access Child Trust Funds as they start to pay out. | There is no mechanism in place to allow parents of children with learning disabilities to access Child Trust Funds as they start to pay out. |
| So after his 18th birthday in June, James's money will just stay where it is. | So after his 18th birthday in June, James's money will just stay where it is. |
| The first government-backed Child Trust Funds, which were set up 18 years ago, began to pay out this month. | The first government-backed Child Trust Funds, which were set up 18 years ago, began to pay out this month. |
| At the time, no mechanism was put in place for parents with children who had learning disabilities to access the money if their child was unable to. | At the time, no mechanism was put in place for parents with children who had learning disabilities to access the money if their child was unable to. |
| Due to the Mental Capacity Act 2005 - designed to protect people who can't make decisions for themselves - that only leaves court action, which is a slow and expensive process, often costing more than the fund is worth. | Due to the Mental Capacity Act 2005 - designed to protect people who can't make decisions for themselves - that only leaves court action, which is a slow and expensive process, often costing more than the fund is worth. |
| Anne's son James has about £7,000 in his fund thanks to family and friends investing. He's one of approximately 6.3 million people who should benefit. | Anne's son James has about £7,000 in his fund thanks to family and friends investing. He's one of approximately 6.3 million people who should benefit. |
| But because James has severe learning disabilities, is non-verbal and on the autistic spectrum, he does not have the mental capacity to make financial decisions. | But because James has severe learning disabilities, is non-verbal and on the autistic spectrum, he does not have the mental capacity to make financial decisions. |
| "A very large exit fee" | "A very large exit fee" |
| "I contacted the company managing his trust fund and asked them what I should do. They advised me to get power of attorney, but James can't give that," said Anne. | "I contacted the company managing his trust fund and asked them what I should do. They advised me to get power of attorney, but James can't give that," said Anne. |
| "The only option I was given was to approach the court of protection to become a financial deputy. | "The only option I was given was to approach the court of protection to become a financial deputy. |
| "The court fees are almost £400 if you do it yourself, but obviously if you use a lawyer, it's much more expensive. | "The court fees are almost £400 if you do it yourself, but obviously if you use a lawyer, it's much more expensive. |
| "I just felt that was a very large exit fee to pay to access his money." | "I just felt that was a very large exit fee to pay to access his money." |
| What is a Child Trust Fund? | What is a Child Trust Fund? |
| Children born from September 2002 were given vouchers by the then Labour government to invest for the future, with the money only accessible at the age of 18. | Children born from September 2002 were given vouchers by the then Labour government to invest for the future, with the money only accessible at the age of 18. |
| The savings pots could now be worth £1,000, or more if parents added contributions. | The savings pots could now be worth £1,000, or more if parents added contributions. |
| The government initially put £250 into the tax-free account during a child's first year, then added another £250 when he or she reached the age of seven. | The government initially put £250 into the tax-free account during a child's first year, then added another £250 when he or she reached the age of seven. |
| For lower-income families, the payment was £500. | For lower-income families, the payment was £500. |
| All disabled children receiving Disability Living Allowance will have received an extra payment of £100 or £200 in 2010/11 before the scheme was scrapped. | All disabled children receiving Disability Living Allowance will have received an extra payment of £100 or £200 in 2010/11 before the scheme was scrapped. |
| Parents, family and friends could also contribute to the account, up to set limits. | Parents, family and friends could also contribute to the account, up to set limits. |
| The scheme was watered down, then scrapped entirely by the coalition government. | The scheme was watered down, then scrapped entirely by the coalition government. |
| It's estimated around 180,000 teenagers like James won't be able to access the money in their Child Trust Funds themselves. | It's estimated around 180,000 teenagers like James won't be able to access the money in their Child Trust Funds themselves. |
| But Labour MP Vicky Foxcroft, shadow minister for disabled people, is worried the problem may extend to other schemes, such as the Junior Isa programme. | But Labour MP Vicky Foxcroft, shadow minister for disabled people, is worried the problem may extend to other schemes, such as the Junior Isa programme. |
| "The government really needs to get civil servants to look into this. | "The government really needs to get civil servants to look into this. |
| "This carries on into Junior Isas in the future so they really do need to get to resolving this as soon as possible," she said. | "This carries on into Junior Isas in the future so they really do need to get to resolving this as soon as possible," she said. |
| Responding to the fact it was a Labour government which set up the original scheme, she said: "I think this wasn't something that we foresaw at the time. It's something that's been raised quite a bit since 2017, so I think it's up to the current government to find solutions to this." | Responding to the fact it was a Labour government which set up the original scheme, she said: "I think this wasn't something that we foresaw at the time. It's something that's been raised quite a bit since 2017, so I think it's up to the current government to find solutions to this." |
| "Incredibly upsetting" | "Incredibly upsetting" |
| It's a similar story for Mikey and his parents, Andrew and Jenny Turner. | It's a similar story for Mikey and his parents, Andrew and Jenny Turner. |
| "We opened a trust fund back in 2005 but sadly, in 2011, we got a diagnosis that Mikey has a neuro-degenerative condition… so he's now severely disabled. | "We opened a trust fund back in 2005 but sadly, in 2011, we got a diagnosis that Mikey has a neuro-degenerative condition… so he's now severely disabled. |
| "The money we invested should be something he can benefit from. | "The money we invested should be something he can benefit from. |
| "He'd like to buy a new bike with that money but [for Mikey] they are specialist pieces of equipment. | "He'd like to buy a new bike with that money but [for Mikey] they are specialist pieces of equipment. |
| "We only found out quite recently - in order to access his savings on his behalf, we'd have to go to the court of protection. | "We only found out quite recently - in order to access his savings on his behalf, we'd have to go to the court of protection. |
| "But the amount of money in his account is quite modest, so it would cost more than what he has in his savings account. So for us, it's a complete non-starter. | "But the amount of money in his account is quite modest, so it would cost more than what he has in his savings account. So for us, it's a complete non-starter. |
| "The only way we can access that money for free is when Mikey dies, and we find that incredibly upsetting." | "The only way we can access that money for free is when Mikey dies, and we find that incredibly upsetting." |
| It was very difficult to get a response from the government on this subject. | It was very difficult to get a response from the government on this subject. |
| HMRC referred Money Box to the Ministry of Justice, as did the Treasury. | HMRC referred Money Box to the Ministry of Justice, as did the Treasury. |
| The Ministry of Justice just referred us to the present scheme, saying it is "vital to ensure the vulnerable are not exploited". | The Ministry of Justice just referred us to the present scheme, saying it is "vital to ensure the vulnerable are not exploited". |
| In Scotland, the matter is dealt with by the Office of the Public Guardian. | In Scotland, the matter is dealt with by the Office of the Public Guardian. |