£90m to be repaid to thousands with lasting powers of attorney
Published: 15 August 2017
The Ministry of Justice (MoJ) is to refund nearly £90m to thousands of people who’ve been overcharged when taking out Lasting Powers of Attorney (LPA) in the last four years.
The errors occurred between April 2013 and March 2017.
In its annual report, the MoJ said,
More people have been registering for LPAs in recent years. Increased volumes coupled with greater efficiencies in processing applications have resulted in fees being charged above the operational cost of delivering the service, without our having exercised the power provided by legislation to allow us to do this.
Using that power, we have from 1 April 2017 set the fees for applying
to register LPAs & Enduring Powers of Attorney at a reduced level.
Alongside this reduction in fees, we will also introduce a scheme for
refunding a portion of the fee to customers who may have paid more than they should
have during the last 4 years. Full details of the scheme will be announced in
It means the fee for applying to register a LPA or an Enduring Power of Attorney has been reduced from £110 to £82. The fee for re-submitting an LPA for registration has been cut from £55 to £41.
One of the main reasons for the popularity of powers of
attorney is that they offer you protection in case your health deteriorates to
such a point in the future that you are no longer able to make decisions for
LPA helps prevent these problems because it enables you to nominate someone in
advance to make decisions on your behalf if you ever lose the ability to do so
yourself through illnesses such as dementia.
Property and Finance LPA allows you to appoint someone to look after your
financial affairs and the Personal Welfare LPA lets you grant an attorney
authority over such matters as health care and the kind of treatment you
contact Claire Trueman, Mark Burn or Rosalind Burton in our Private Client Team
if you would like more information about Lasting Powers of Attorney.