Your money rights at 16 — what changes legally

①What you can do at 16 — the money-related list

• Open a current account in your own name (most banks open from 11-16 already but at 16 it becomes a "proper" account with full features)
• Get a debit card with full contactless and online-shopping capability
• Receive your National Insurance number automatically by post
• Work up to 40 hours a week if you've finished compulsory school-age (16-17, max 8 hours/day)
• Sign certain contracts that are for "necessaries" (food, clothes, lodging, education) — but credit contracts are not "necessaries"
• Claim Universal Credit in limited situations (estranged from family, parent of own child, vulnerable)
• Get married in Scotland without parental consent; in NI with parental consent; in England and Wales the minimum age is now 18 (changed in 2023)
• Choose your own GP and consent to your own medical treatment
• Apply for an apprenticeship or join a paid scheme

②What you still can't do until 18

• Get a credit card or loan in your own name (Consumer Credit Act + lenders' policies)
• Get a mortgage in your own name (linked to credit law)
• Sign a tenancy agreement in your own name in England and Wales (in Scotland the age is 16, but in practice landlords still refuse)
• Open a Lifetime ISA (only 18+) or Stocks & Shares ISA in your own name
• Vote in UK general elections (16-year-olds CAN vote in Scottish and Welsh elections and Senedd elections)
• Stand for elected office
• Buy a National Lottery ticket (the age went from 16 to 18 in April 2021)
• Gamble at a casino, bingo or betting shop
• Buy alcohol, tobacco, fireworks, knives, paint thinners
• Get a tattoo (legally 18, regardless of parental consent — Tattooing of Minors Act 1969)
• Drive a car (provisional licence at 17; first car insurance at 17+)

③Contractual capacity — the fiddly bit

"Contractual capacity" = the legal ability to bind yourself to a contract. Under-18s have limited capacity in England, Wales and NI. Specifically:

• Contracts for "necessaries" (essential things: food, basic clothing, lodging, education, medical care) are enforceable against the under-18 — they have to pay a reasonable price.
• Contracts for non-necessaries (gaming subscriptions, expensive non-essential goods) are generally voidable by the minor — the minor can refuse to pay and get out of them, with some exceptions.
• Contracts for credit, loans, hire-purchase, mortgages are void against the minor — the lender can't enforce them at all.

In Scotland, the age of contractual capacity is 16, but credit law still applies at 18.

④Benefits and support you can claim at 16

Most benefits are designed for adults. There are some you can claim in your own name at 16, but only in particular situations.

• Universal Credit — usually 18+. Available at 16-17 if you're estranged from family, a parent yourself, in care or a care leaver, sick or have a disability, or your partner is over 18 and eligible.
• Care Leaver Support — if you've been in local authority care, you get tailored financial support from your local council via your Personal Adviser.
• 16-19 Bursary Fund / EMA — see the sixth form vs college guide.
• Disability Living Allowance (under 16) / Personal Independence Payment (16+) — if you have a long-term physical or mental health condition.
• Child Benefit — paid to a parent for you until you're 16 (or until 20 if you stay in approved education/training).

If you're in a tough situation at 16, talk to your school's pastoral team, Citizens Advice (free, confidential), or Childline (0800 1111). There's often help available you don't know about.

⑤What to do on your 16th birthday

1. Wait for your National Insurance number in the post. If it doesn't arrive by 17, apply at gov.uk.
2. If you have a teen account, ask your bank to upgrade it to a 16+ current account. You'll get a fuller debit card.
3. Set up a personal tax account at gov.uk/personal-tax-account so you can check your tax across the years.
4. If you're working, double-check your tax code is 1257L, not BR.
5. Open a separate savings account if you don't have one. Pay yourself first.

NCNational Curriculum links

• England — PSHE Association KS4 L17 (financial responsibility), Citizenship KS4
• England — Citizenship KS4 (operation of the legal system, consumer rights)
• Wales — Curriculum for Wales Progression Step 5 (HWB AoLE, Humanities AoLE)
• Scotland — Curriculum for Excellence HWB 4-19a (decision making), Citizenship
• NI — LLW KS4 Personal Finance, Local & Global Citizenship

Full mapping in the curriculum map.