Equality and non-discrimination – Ensuring that every child and young person has what they need so that they have equal opportunity to fulfil their potential.

At Together, we often support our members when faced with issues that threaten or impact on children’s human rights. We provide guidance and knowledge of the UN Convention on the Rights of the Child [UNCRC] and try to help connect members to others who can help remedy such issues.

Over the past 5 months we have been supporting our member – Harmeny Education Trust – with an issue that many of the children that live with them face when accessing bank accounts. Much work has been done to outline the role of businesses when it comes to children’s rights. The Children’s Rights and Business Principles (UNICEF, 2012) are clear that in providing products/services, businesses should avoid discrimination and that where products/services are restricted from children, that this aligns with international human rights standards. Arguably, the issue faced by children in the care of Harmeny and others, does not align with this expectation.

If you would like to discuss the issue outlined by Harmeny, or have experienced this issue as well, please get in touch.

Jenny McIvor, Head of Finance, Harmeny Education Trust

Harmeny Education Trust provides residential childcare and education to children and young people whose lives have been impacted by trauma.  We provide living and learning spaces for up to 29 residential pupils and we also offer day education services.  We are based in Balerno, on the outskirts of Edinburgh at the foot of the Pentland hills and our 35-acre woodland site offers a unique setting for us to work therapeutically with our young people.

Access to banking for children and young people in residential care

At Harmeny Education Trust, we support children and young people who have experienced early adversity, helping them to heal, grow, and thrive. As part of this journey, we aim to equip them with tools for independence—including access to financial services. But despite our best efforts, opening a bank account for a child in residential care can be a persistent challenge.

What’s the problem?

When a parent or guardian isn’t available to open a bank account on a child’s behalf, the process becomes complicated. Online applications are inaccessible so the young person must visit a branch, and additional documentation is required.  In our experience, bank staff have been unable to articulate specifically what is needed which has led to significant delays in opening accounts.

For most young people placed at Harmeny, the role of legal guardian sits with the local authority.  As a result, the social worker is required to attend the bank with a young person in order to open an account.  We work with local authorities across Scotland and arranging such a meeting is not always possible or practical.

Even when an appointment with social workers can be arranged, without a clear procedure there is no guarantee that a visit to a branch with a young person will be a success. Any unsuccessful attempt can erode our young people’s trust in adults.

Additionally, some banks offer pocket money tools that help teach young people about spending, saving and budgeting from an early age.  Unfortunately, these tools are not available to all young people in residential care because they must be linked to a parent or guardian’s personal account, meaning our young people miss out on early years fundamentals about money management.

Some of our young people are eligible for disability allowances or payments.  Without a bank account they cannot claim this and are missing out on important funds to support them.

Since our young people can’t receive and spend money electronically, their pocket money is handed out in cash form.  There is a known stigma for young people in residential care about receiving pocket money in brown envelopes.  Plus, in today’s world, many vendors no longer accept cash risking further stigma.

Why is it a problem?

When discussing this with our bank they have highlighted that a person under 16 doesn’t have legal capacity to enter into any transaction, which is why they rely on a parent or legal guardian in order to open a bank account.

Under the Age of Legal Capacity (Scotland) Act 1991 this is correct, however this Act does provide some exceptions when the transaction is of a kind commonly entered into by young people of their age or circumstances, and the terms of the transaction are not unreasonable.

It could be argued that a basic bank account would be considered such an exception.  However, the risk averse nature of banks means that they are less likely to offer such products without parental consent.

This becomes complex for young people in residential care who may not have a parent or guardian readily able to act on their behalf and this lack of parental consent becomes a barrier to financial inclusion, even if the transaction might be lawful.

A rights-based lens

Embedding the UNCRC in practice means ensuring that systems, services, and institutions uphold children’s rights in everyday life.

Article 2 of the UNCRC expressly states that children should not be discriminated against based on their identity. The bank’s approach limits what services and accounts some care experienced children can access due to the expectation that there would be a parent-led account, ultimately impacting on various other UNCRC rights including Article 3 (best interests) and Article 8 (right to an identity).

The UNCRC (Incorporation) (Scotland) Act 2024 places a duty on public authorities—and those delivering functions of a public nature—to act compatibly with children’s rights. While banks are not public authorities, some of these institutions hold contracts with the Scottish Government, such as the Banking Services Framework Agreement. We believe that this arguably creates a reasonable expectation that they operate in line with the UNCRC’s principles.

Why it matters

Financial inclusion is not a luxury—it’s a method for realising many rights including Article 27 (adequate standard of living) and Article 6 (life, survival and development). Without a bank account, young people cannot receive pocket money electronically, save for the future or learn how to manage money. These are essential life skills and a foundation for independence.

At Harmeny we remain committed to advocating for care experienced young people and ensuring they have equal access to the tools they need to thrive.

What’s next?

We will continue to try and establish a clear process with the bank to support our young people in gaining access to basic financial services.

We will make contact with local authorities to establish a process for setting up accounts for young people as soon as they enter the care system, and for ensuring the money saved is protected for those young people until they move into independent living.

In addition to this we intend to engage with policymakers to influence change and ensure equal access to these services for young people living in residential care.

Ends

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Together’s UNCRC Training Sessions
Together now offers two types of training sessions based on the content of the Children’s Rights Skills and Knowledge Framework:

• Taking a Children’s Human Rights Approach in Practice session, which covers the five principles of a Children’s Human Rights Approach in your work and organisation.
• Sessions dedicated to each of the five principles – Embedding, Equality and Non-Discrimination, Empowerment, Participation and Accountability. These sessions are a deeper dive into how to apply each principle in your working practice and the links they have to the other four principles. 

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