Child Trust Funds and the Cost of Insurance

Money Box

BBC

Business

4.2 • 804 Ratings

🗓️ 19 July 2025

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

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Summary

Campaigners say more needs to be done to help the parents and carers of tens of thousands of disabled young adults access their own money held in Government backed Child Trust Funds. The Financial Inclusion Commission has told Radio 4's Money Box it wants the Government to officially endorse an informal process that some financial providers are already using to help grant access in days, instead of months or, in some cases, not at all.

The cost of insurance might be falling but if you choose to pay monthly then you could be paying an extra 20-30% more. The Financial Conduct Authority has been carrying out a study into the market but what can it do to help protect people who can't afford to pay the whole amount up front

And we also look why a record number of people are taking money out of their pension pot as soon as they're able to at the age of 55. What could be the impact on your financial situation later in life?

Presenter: Paul Lewis Reporter: Dan Whitworth and Jo Krasner Researchers: Eimear Devlin and Catherine Lund Editors: Sarah Rogers and Justin Bones

Transcript

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0:00.0	Get closer to the action with live commentary from the world's greatest sporting events on BBC Sounds.
0:06.0	It is all over!
0:08.0	Bulls are an edge, caught behind.
0:10.0	Including cricket Super League, Women's Euro's 2025, Wimbledon, Formula One and much more.
0:17.0	It's all right to the lights and foot to the floor.
0:20.0	Oh, what's's done it!
0:21.4	Drop shots, winner!
0:23.6	On five sports extra, sports extra two and sports extra three.
0:27.7	Listen, only on BBC Sounds.
0:31.4	BBC Sounds, music, radio, podcasts.
0:35.1	Hello, welcome to this Moneybox podcast.
0:39.8	People who pay for their insurance monthly are charged a hefty price for credit and may even be charged higher insurance premiums too.
0:45.5	A record number of 55-year-olds have taken money out of their pension pot as soon as they can,
0:50.6	but is that sensible? And the Scottish Government says it will scrap the two-child
0:55.5	limit on means-tested benefits paid to parents in Scotland. But first, the government has finally
1:01.8	set a date to meet people campaigning on behalf of an estimated 80,000 teenagers who are locked
1:08.1	out of their state-backed child trust fund accounts.
1:11.6	That's because these people lack the mental capacity to take the money out, even though
1:16.0	at age 18 it is legally theirs.
1:19.4	The government had agreed to meet them some months ago, but until last night, no date had
1:23.8	been fixed.
1:24.5	More on that in a moment.
	...

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