Government launches LPA review
The Office of the Public Guardian (OPG) has launched a 12-week consultation today with a view to reforming the process of creating and registering a lasting power of attorney (LPA).
LPAs can be a valuable tool for Financial Planners when helping clients plan for the future and the management of their finances, as well as providing protection in the event of the vulnerable being defrauded.
The number of registered LPAs has increased drastically in recent years to over 5m, with a spike in new registrations during the Coronavirus pandemic, but the process of making one retains many paper-based features that are over 30 years old.
The OPG aims to use technology to reform the process of witnessing, improve access and speed up the service.
The consultation proposes widening the OPG’s legal powers to check identities and stop or delay any registrations that raise concern. It will also look at making the process for objecting to the registration of an LPA simpler to help stop potentially abusive LPAs.
Justice Minister, Alex Chalk MP, said: “A lasting power of attorney provides comfort and security to millions of people as they plan for old age. These changes will make the service quicker to use, easy to access and even more secure from fraud.”
Last year the OPG launched a new digital service for sharing LPA details online, to allow those granted LPA to quickly take action when needed.
Any substantial changes to LPAs will require amendments to the Mental Capacity Act 2005 which brought in the current system.
Rachel Griffin, tax and Financial Planning expert at Quilter, said: “It is pleasing to see the government put the wheels in motion to upgrade the system for people to register an LPA and to help combat the scourge of scams that we are unfortunately becoming all too familiar with
“It is hoped the Office of the Public Guardian has used the pandemic to look at where the process can be streamlined and made easier so people can get an LPA in place with minimal fuss as having one can make a huge difference to someone’s finances. These changes must also include raising awareness with the public at large. Far too few people are aware of LPAs and their benefits, so any overhaul must seek to improve knowledge of them and how to go about attaining one.
“While this consultation is clearly a step in the right direction, it is important, however, that people do not wait until a new system is in place. An LPA can only be registered while you have mental capacity – once you’ve lost capacity it is too late. While the conversation with family members can be hard and the process time-consuming, it must be put to the top of the to-do list or risk losing this vital avenue of protection.”