New guide aims to help families access savings of disabled young people
It raises awareness of the Mental Capacity Act, which applies to people in England and Wales who lack capacity to make decisions.
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Your support makes all the difference.Parents who care for disabled young people will be better supported to access vital savings, including child trust funds (CTFs), due to a new guide, according to the Government.
The toolkit marks the first step in the Government’s pledge to raise awareness of the law to support families, providing the information they need in an easily accessible format so they can access funds quicker.
It will help parents and carers understand their rights and what they need to do under the Mental Capacity Act to manage the finances of their child, should they lose the ability to make decisions for themselves.
The Mental Capacity Act 2005 applies to people aged over 16 living in England or Wales who lack the capacity to make some or all of their own decisions.
The law is in place to empower and support adults with learning difficulties or severe disabilities to make their own decisions about their property or finances where they can.
It also serves to protect their bank accounts from fraud and abuse by people looking to exploit their vulnerability, the Government said.
The launch comes in response to a Government consultation published in February which found many parents were unaware of the legal steps they have to take to be able to make financial decisions on behalf of their child as they transition into adulthood.
In February, the Government said it had decided against developing a scheme that could have allowed the parents of teenagers who lack mental capacity to access small payments from CTFs without going through certain legal processes.
It said focusing on improvements to the application process, alongside raising awareness of the Mental Capacity Act, would address the root cause of the problem, so people know about the need to obtain legal authority for adults lacking capacity.
Parents who care for their disabled children face huge challenges every day and we understand the frustration they've often experienced when trying to access their savings
The Government is working with disability charities and the finance sector to raise awareness of the Act, as well as working to speed up application processes for families.
Banks, financial services, schools and disability charities will also be able to use the toolkit to better support families and guardians in understanding how the law works, the Government said.
Funds saved in bank accounts, such as CTFs and junior Isas, can help families provide care for their child or buy specialist equipment to support their needs.
To access funds, parents need to apply to the Court of Protection or have a lasting power of attorney in place.
CTFs are long-term, tax-free savings accounts for people born between September 1 2002 and January 2 2011, which they can access when they turn 18.
Many children received around £250 each from the state at the time their CTF was started, while those from low-income families or in local authority care received an additional £250.
The National Audit Office recently raised concerns that accounts are at risk of becoming forgotten or lost track of by those holding them.
Justice minister Mike Freer said: “Parents who care for their disabled children face huge challenges every day and we understand the frustration they’ve often experienced when trying to access their savings.
“Raising awareness of the Mental Capacity Act is a vital part of supporting families so they better understand the important and necessary steps they need to take when their loved one loses capacity – easing their child’s transition into adulthood while protecting their finances from fraud.”
Alex Ruck Keene KC, a barrister specialising in mental capacity, said: “Awareness-raising and education is a never-ending task, but it is extremely helpful to have up-to-date and practical materials to assist families – in particular – navigate the requirements of the Act to keep the focus on the needs of those with impaired decision-making capacity.”