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Sign up nowPower of attorney system to go online – will it help with delays?
It currently takes around 20 weeks to register a lasting POA
The process of managing your loved one’s affairs should soon become quicker and safer after a new power of attorney bill received Royal Assent last week.
Power of attorney (POA) is a legal document where one person gives another the authority to make financial and/or medical decisions on their behalf. A lasting power of attorney (LPA) is the most common type as it offers an ongoing arrangement with no expiry date. But before they can be used these documents must be registered with the Office of the Public Guardian (OPG).
The Powers of Attorney Act will bring the existing paper-based system online to speed up registration as well as improve safeguards around the process to prevent fraud. Here, Which? explains what the changes will involve and when you should set up an LPA.
- If you'd like to set up a power of attorney for yourself, or someone else, Which? can help. Prepare your documents and have them reviewed by a specialist from only £99.
What do the reforms include?
The new legislation was introduced as a private members’ bill by Conservative MP Stephen Metcalfe and includes the following changes:
Digitisation to speed up processing time
The government said there are currently more than six million LPAs registered every year and the OPG handles more than 19m pieces of paper due to the current paper system.
It said the digitisation will speed up registration time by picking up errors earlier and allowing them to be fixed online, rather than having to wait for documents to be posted back and forth between the application and the OPG.
There will also be an improved paper process introduced for those who are unable to use the internet.
- Find out more: how to set up power of attorney
New safeguards to prevent fraud
The reforms will allow checks on the identity of those applying for an LPA to be carried out to strengthen fraud protection.
The identification checks will require official documents such as a driving licence as part of the verification process.
Previously lawyers have warned that fraudsters could submit false documents to the OPG and be handed the legal document entitling them to take over the affairs of the victim.
An investigation by the BBC Radio 4 consumer programme 'You and Yours' spoke to one victim whose empty home was targeted by a fraudster who obtained an LPA without any proper checks.
- Find out more:7 things you need to know about power of attorney
When will the changes come into force?
The government said extensive testing will be needed to ensure the new process is simple to use and secure.
It said more information on the timings will be published in the coming months.
Why are the changes needed?
A Which? investigation in 2022 found the POA system was in desperate need of improvement, with widespread confusion about how the process works and banks often causing avoidable problems for people registering as attorneys.
Reforms have been in the pipeline for a while. A consultation, 'Modernising Lasting Powers of Attorney' in 2021, sought comments on how to make the service more efficient, while maintaining safeguards.
Although the OPG introduced a digital tool in 2013, the final stages of the process, including signing, witnessing, attesting and delivering the LPA must be completed on paper.
A new tool ‘Use a lasting power of attorney’ was launched in June 2020, which allowed attorneys and donors to share the details of their LPAs with third parties online, but in a small number of cases the physical LPA (or a certified copy of it) still needs to be shared.
Will reforms help with delays?
The OPG said applicants should currently allow up to 20 weeks for their LPAs to be registered.
A Freedom of Information (FOI) request revealed the average time in 2022-23 was 91.5 working days. The same FOI revealed nearly 30,000 LPA applications were rejected by the OPG due to mistakes, which can increase the time taken for them to be registered.
Digitisation of the system should help to pick up errors and speed up the process. In the meantime, the OPG said it has increased the number of staff processing applications.
- Find out more: nearly 30,000 lasting power of attorney applications rejected: 5 common mistakes to avoid
When should you set up a LPA?
Setting up an LPA can give you peace of mind that someone you trust is in charge of your affairs.
If you're facing an illness, or believe your mental capacity might deteriorate in the future, it's worth thinking about whom you would like to handle your affairs.
If a POA isn’t set up before you lose mental capacity, it can lead to complications if you (or a loved one) have difficulty looking after your own finances or care arrangements.
So it’s best to organise a POA sooner rather than later.
- If you'd like to set up a power of attorney for yourself, or someone else, Which? can help. Prepare your documents and have them reviewed by a specialist from only £99.
