The government has recently passed the new 2023 Powers of Attorney Act, which brings much needed reforms to the process of applying for a Lasting Power of Attorney (LPA). It has been suggested that the new ability to apply online for powers of attorney will better protect the most vulnerable in society and streamline the process. In light of these changes, many are wondering what this means for those currently looking to apply for an LPA, whether this new system is actually better, or whether further reforms are still desperately required.
What is a Lasting Power of Attorney (LPA)
An LPA is a legal document which grants a trusted individual permanent authority on various prescribed issues. These can include issues related to financial matters or those concerning health and welfare should you later lose the mental capacity to do so. The two key types are explained below:
Health & Welfare LPA
This LPA allows for decisions to be made on things like medical care or life sustaining treatment. This will only take affect once the donor does not have mental capacity to make these decisions for themselves. For instance, it may permit your attorney to make decisions about your daily routine, including those on washing, dressing or eating.
Property & Finance LPA
This LPA permits decisions to be made on financial affairs including the buying or selling of property, paying your bills or making investments. These can be registered to grant permissions immediately and when mental capacity is present or alternatively in preparation for when mental capacity may be lost in the future.
Problems with the LPA process
The LPA process has been widely criticised as being difficult to navigate, with significant processing times, challenges and safeguarding issues for vulnerable populations and bureaucratic hurdles. According to the OPG, current wait times are currently around 20 weeks, due to a severe backlog induced by the Covid-19 pandemic. Awareness of and access to LPAs has also been highlighted as a key area in severe need of improvement. For instance, many are unaware of fee exemptions meaning they pay more than required or avoid the process altogether.
Key changes introduced by the Powers of Attorney Act
The issues in the LPA process have led to calls to reform the procedure and improve digital accessibility, reduce processing times and improve support for those looking to make an application. The Powers of Attorney Act 2023 aims to address this through the below key changes:
- Allowing applications to be made online
- Allowing for mistakes to be fixed online.
- Introducing ID checks on those applying for an LPA to reduce fraud.
- Widening group of legal professionals who can certify copies of LPAs.
- Widening the group of people who can make an objection e.g. local authorities with safeguarding concerns.
- Simplifying the objection process to minimise Court of Protection’s time and resources.
What Does This Mean and How Will This Affect The Current Process?
The government argue the new ability to apply online for LPAs will better protect the most vulnerable in society and streamline the process. They also promise to make the process quicker, easier to access and more secure for applicants. To reassure applicants, whilst there will be a digital option to apply for an LPA, the ability to apply through the paper process will also continue for individuals unable to access or use the internet.
However, whilst the Act’s changes have been welcomed by many, there still remain concerns about many aspects of the process, a sentiment echoed by the Law Society. Key concerns include:
- Complexity in using online LPA service even for those digitally literate.
- Further support needed for certificate providers to understand and fulfil their roles.
- Continuing backlogs and delays in registering LPAs.
- The risk of fraud in LPA applications not being adequately addressed.
Overall, the new Act has been welcomed at making the system quicker and simpler. However, many believe that the changes do not go far enough. Increased accessibility, reduced processing times and better safeguards in protecting vulnerable members of society have all been highlighted as important areas still needing further improvement.
