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The recent decision by major UK banks to phase out disabled person’s trust accounts has sparked widespread concern among Disabled people and their advocates. Trust accounts, a lifeline for many, allow third parties to manage funds on behalf of account holders unable to do so independently. The assets, which may include compensation for serious injury, do not count towards means-testing and are eligible for tax relief.
Since the Covid pandemic, nearly all high street banks have withdrawn their trust account services, citing rising costs and increasingly complex compliance regulations. Most recently, Nationwide Building Society became the latest provider to exit the market.
The banks’ actions—framed as a response to rising fraud—risk leaving Disabled people without access to essential financial tools.
Metro Bank remains the only high street bank currently offering trust account services, though accounts with balances below £25,000 are subject to a £5 monthly fee. Cater Allen, the private banking division of Santander, also provides trust accounts; however, applications require a referral from a solicitor or financial adviser.
Disabled people face a unique set of barriers in accessing banking services. For many, trust accounts are not a convenience but a necessity, offering a way to manage complex personal finances via trusted family members, friends, or carers. The sudden closure of these accounts may strip Disabled people of their financial independence and dignity.
For many, having a trusted third party manage these accounts is often critical. Without an alternative solution in place, the risk of financial mismanagement increases, leaving Disabled people vulnerable to missed payments for essential services such as rent, utilities, and care.
This move reflects a deeply ingrained systemic failure to accommodate Disabled people. The closure of trust accounts typifies how society designs systems that exclude Disabled people instead of adapting to their needs. Financial institutions should recognise their obligation to provide equitable services that uphold Disabled people’s rights.
This issue also highlights the broader need for an accessible banking system. From inaccessible online platforms to complex account verification processes, financial institutions routinely ignore the needs of Disabled people. The exclusionary practices reinforce the inequality that trust accounts were designed to alleviate.
Banks must step up to fill this service gap. Introducing alternatives, such as easily accessible accounts with third-party management options or co-managed account services, could help mitigate the damage. Additionally, banks should consult with Disabled People’s Organisations (DPOs) to develop systems that are truly inclusive.
In the meantime, WECIL is calling for urgent government intervention to regulate banks and ensure no Disabled person is left behind by these changes. The Equalities and Human Rights Commission should also scrutinise whether such closures violate the Equality Act by indirectly discriminating against Disabled people.
The phasing out of trust accounts is yet another example of a decision made without considering the needs of Disabled people. This shortsighted approach risks plunging thousands into financial chaos. At a time when Disabled people are already disproportionately affected by the cost-of-living crisis, banks’ actions are not just inconvenient—they are discriminatory.
For some Disabled people, concerns around managing a bank account present a barrier to accessing personal budgets, such as a Direct Payment or Personal Health Budget, which would support them to live independently. In many cases, WECIL’s Independent Living Payments Team can help by managing an account on their behalf. If this is something you would like to discuss for yourself, contact WECIL’s Navigators.
