Financial expert Martin Lewis has now also spoken out on this issue, highlighting it it on his blog.
All children in the UK born between September 2002 and January 2011 received £500 in government vouchers as an incentive to join the scheme.
Disabled children and those from low-income families received larger amounts to provide additional benefits in later life. This money was then locked away – with parents able to add more to the account each year – until the child turned 18.
However, no consideration was given to what would happen if any of the children lacked the mental capacity to manage their finances once they turned 18.
These young people cannot take control of their savings, yet there isn’t an easy way for their parents to access the account on their behalf.
Instead, the Government requires parents in England and Wales managing their child’s finances to make an application to the Court of Protection to access their Child Trust Fund.
In Scotland, you will need to make an application to the Office of the Public Guardian in Scotland. And in Northern Ireland, you’ll need to apply to the Office of Care and Protection.
Contact, the charity for families with Disabled children, said: “This process places too much pressure on parents.
“There is also a fee for applying to the Court of Protection. And while the Government has now agreed that they will waive the fee if parents apply before their child turns 18, parents may still need to become a financial deputy.
“This will involve – amongst other things – paying fees. And even once parents have submitted the application, current waiting times are around six months.
“We fear that many families will not have the energy, time or funds to use the Court of Protection process. This means that their child’s savings are at risk of remaining locked away indefinitely.
“We are calling on supporters and families to help us call for urgent action to stop £210 million of savings owed to Disabled young people from being locked.”
Contact is calling on the Government to increase the scope of the DWP Appointee Scheme to cover Child Trust Funds and Junior ISAs up to £5,000.
This would bring England and Wales in line with Scotland, where an Access to Funds scheme makes it easier and cheaper for young people with a learning disability to access their savings.
Contact has produced a template so that you can email your MP about this issue .
For more information see Child Trust Fund campaign available from contact.org.uk.