In a child personal injury claim, after a settlement has been reached by the parties, a solicitor will apply to the court for the matter to be listed for an Infant Approval Hearing. In cases involving children, anyone below the age of 18 years old, it is necessary for the court to approve the award of damages agreed by the parties. So that the settlement is binding on the parties. The child’s case needs to be put before a Judge to approve that the amount offered by the Defendant is reasonable compensation. The Litigation Friend (usually a parent or guardian) and the child will attend the hearing with their Solicitor. The hearing usually lasts around 30 minutes. The court will review several factors, including:
1. The amount of the settlement
2. Whether the child’s medical needs are met now and in, the future
3. How the money will be held
Where Is the Child's Compensation Kept After Settlement?
- Court Funds Office (CFO)
- Once the settlement is approved by the court, the compensation is typically paid into the Court Funds Office.
- The money is held in a Special Account, and it remains there until the child turns 18.
Why Is the Compensation Held This Way?
- Children lack legal capacity
- Under UK law, a person under 18 cannot legally manage or control significant financial assets, including compensation.
- Protection of funds
- The system ensures that the money is not misused or spent by parents, guardians, or others.
- It protects the child’s future needs and compensates them for their injury, loss of amenity, or future care.
- Court supervision
- Every child injury settlement must be approved by a judge at an Infant Approval Hearing to ensure the amount is fair and that the funds are properly safeguarded.
What Can Be Done with the Money Before the Child Turns 18?
- Interim withdrawals: If necessary, a parent or guardian can apply to the court for access to some of the money to meet the child’s needs (e.g. medical equipment, specialist care, education).
- Court approval is required.
What Happens at Age 18?
- The child becomes legally entitled to the compensation.
- They can apply to the Court Funds Office to have the funds released on their 18th birthday.
- The full amount, plus any interest accrued, will be paid to them directly.
If you or someone you know has suffered an injury, our experienced team is here to help. Contact our Personal Injury team today and Neeta or Emma can give you their advice on whether you have a claim and a better idea of how we can help you live with your injuries in the best way we can.
