TL;DR
UK Powers of Attorney come in several forms. Lasting Powers of Attorney (LPAs) for Property and Financial Affairs and for Health and Welfare are the modern format. Enduring Powers of Attorney (EPAs) made before October 2007 remain valid. Court-appointed deputyship covers situations where capacity is lost without an LPA in place.
Key facts
- Lasting Powers of Attorney (LPAs) come in two types: Property and Financial Affairs and Health and Welfare.
- LPAs must be registered with the Office of the Public Guardian before they can be used (for property) or take effect when capacity is lost (for health).
- Enduring Powers of Attorney (EPAs) made before 1 October 2007 remain valid for property and financial affairs.
- Where no LPA is in place and capacity is lost, the Court of Protection appoints a deputy through a process taking 4 to 6 months.
- LPA registration fees are GBP 82 per LPA (with fee remission for those on low income).
Lasting Powers of Attorney
Lasting Powers of Attorney were introduced by the Mental Capacity Act 2005 and have been available since 1 October 2007. Two types exist: Property and Financial Affairs LPA covers money management, banking, paying bills, dealing with property, and investments. Health and Welfare LPA covers medical decisions, where to live, and day-to-day care arrangements.
The donor and attorneys
The donor is the person granting the LPA. Attorneys are the chosen decision-makers. Multiple attorneys can be appointed, either to act jointly (all must agree), jointly and severally (any can act alone), or jointly for some decisions and severally for others. Replacement attorneys can be named to step in if a primary attorney is unable to act.
Registration process
An LPA is created using the prescribed forms (LP1F for Property and Financial Affairs, LP1H for Health and Welfare). After signing, the LPA must be registered with the Office of the Public Guardian (OPG) before it can be used. Registration takes 8 to 20 weeks typically. Fees are GBP 82 per LPA; fee remission applies for those on low income or certain benefits.
When LPAs can be used
A Property and Financial Affairs LPA can be used as soon as it is registered, with the donor's permission, even while they have capacity. This allows the attorney to help with everyday financial matters before any capacity loss. A Health and Welfare LPA can only be used when the donor has lost capacity to make the specific decision in question.
Enduring Powers of Attorney
EPAs created before 1 October 2007 remain valid but cover only property and financial affairs. There is no EPA equivalent for health and welfare. EPAs do not require registration until the donor begins to lose capacity, at which point registration is mandatory.
Court of Protection deputyship
Where capacity is lost without an LPA or EPA in place, a deputy must be appointed by the Court of Protection. The process takes 4 to 6 months from application to order, costs more (GBP 408 application fee plus ongoing annual supervision fees of GBP 35 to GBP 320), and is more administratively demanding than LPA registration.
Choosing attorneys
Attorneys must be 18 or over and have capacity. They are typically family members or trusted friends; a professional (solicitor, accountant) can also be appointed, though they will usually charge for acting. Where multiple family members are willing, the joint/several arrangement is a flexible default. Where family relationships are complex (e.g. blended families), a professional attorney can reduce conflict.
Restrictions and preferences
LPAs can include 'instructions' (binding rules) and 'preferences' (non-binding wishes). Instructions might restrict attorneys from selling a specific asset or require consultation with a named person. Preferences might express the donor's wishes on residence or treatment.
The OPG safeguarding role
The Office of the Public Guardian oversees LPAs, EPAs, and deputies. It can investigate concerns about misuse and apply to the court to revoke an LPA where an attorney is not acting in the donor's best interests.
The Care Act 2014 statutory framework
The Care Act 2014, in force from April 2015, is the principal legislation governing adult social care in England. The Act consolidated and reformed the law on local authority responsibilities for assessment, eligibility, and funding of care services. Sections 9 to 13 cover the care needs assessment and eligibility determination; section 17 covers the financial assessment; sections 18 to 23 cover the duty to meet eligible needs.
The Care and Support Statutory Guidance, issued by the Department of Health and Social Care under section 78 of the Act, is binding on local authorities. Departures from the guidance must be justified on rational grounds and can be challenged through the council's complaints procedure, the Local Government and Social Care Ombudsman at lgo.org.uk, and ultimately by judicial review.
The national eligibility threshold under the Care and Support (Eligibility Criteria) Regulations 2015 has three components: the adult has needs arising from a physical or mental impairment or illness; the needs prevent the adult from achieving two or more specified outcomes; and this has a significant impact on the adult's wellbeing. The threshold is applied consistently across England but its application is fact-sensitive.
Means-testing thresholds and rules
In England, local authority care funding is means-tested with two capital thresholds. Capital below GBP 14,250 is disregarded; the local authority pays in full apart from a contribution from income, leaving the person with a Personal Expenses Allowance of GBP 30.65 per week. Capital between GBP 14,250 and GBP 23,250 attracts a tariff income of GBP 1 per week per GBP 250 of capital above GBP 14,250. Capital above GBP 23,250 means the person self-funds.
The family home is generally disregarded for home care funding because the person continues to live in it. For residential or nursing care, the home is included in the capital test unless a spouse or civil partner lives there, a relative aged 60 or over, an incapacitated person, or a dependent child under 18 lives there. The 12-week property disregard allows the council to fund the first 12 weeks of permanent residential care without including the home in the means test.
Scotland operates a different system with free personal care (a fixed weekly contribution toward personal and nursing care, regardless of means). Wales has higher capital thresholds for residential care than England. Northern Ireland operates yet another framework. The thresholds and details are reviewed periodically; the current government has consulted on care funding reform but has not implemented the Dilnot Commission cap proposed in the Care Act.
NHS Continuing Healthcare
NHS Continuing Healthcare (CHC) provides fully NHS-funded care for adults with a primary health need (rather than primarily social care needs). CHC is not means-tested; the full cost of care is met regardless of the person's wealth or income. The assessment is administered by Integrated Care Boards (ICBs) using the Decision Support Tool covering 12 care domains.
Eligibility decisions are based on the nature, intensity, complexity, and unpredictability of the person's needs. CHC eligibility is heavily contested in practice; many initial refusals are overturned on appeal through the local resolution process, NHS England, and ultimately the Parliamentary and Health Service Ombudsman. Specialist CHC advisers (often nurse-led firms) handle many appeals.
NHS-funded Nursing Care (FNC) provides a contribution toward nursing care costs in care homes for residents who need nursing but do not meet the CHC threshold. The current FNC rate is reviewed annually; it is paid to the care home directly to cover the nursing element of the care.
Mental capacity and Lasting Powers of Attorney
The Mental Capacity Act 2005 provides the framework for decision-making where an adult lacks capacity to make a decision. Capacity is presumed unless the contrary is established on the balance of probabilities. The Act sets out a decision-specific test: a person may have capacity for some decisions but not others.
Lasting Powers of Attorney (LPAs) come in two types under the MCA. Property and Financial Affairs LPAs cover money management, banking, and property. Health and Welfare LPAs cover medical decisions and care arrangements. LPAs must be registered with the Office of the Public Guardian (OPG) before they can be used. Registration fees are GBP 82 per LPA, with fee remission for those on low income.
Where capacity is lost without an LPA in place, the Court of Protection appoints a deputy under the MCA. The process takes 4 to 6 months and is more administratively demanding than LPA registration. The OPG supervises deputies through annual reports and (for property and financial affairs deputies) requires security through a bond.
Care Quality Commission regulation
The Care Quality Commission (CQC) is the independent regulator of health and social care providers in England under the Health and Social Care Act 2008. The CQC registers and inspects care homes, domiciliary care providers, hospitals, GP practices, and other care services. Inspection ratings are: Outstanding, Good, Requires Improvement, Inadequate. The CQC publishes inspection reports at cqc.org.uk.
The CQC's enforcement powers include warning notices, civil penalties, prosecution, suspension of registration, and cancellation of registration. Providers rated Inadequate are typically subject to special measures with intensive oversight and a timetable for improvement. Persistent failure can lead to deregistration and closure.
Scotland operates the Care Inspectorate, Wales the Care Inspectorate Wales, and Northern Ireland the Regulation and Quality Improvement Authority. Each performs broadly equivalent functions under the relevant devolved legislation.
Direct payments and the right to choose
Personal budgets allocated under the Care Act 2014 can be taken as direct payments rather than council-arranged services. Direct payments give the eligible person flexibility to employ a personal assistant directly, contract with care providers of their choice, or combine multiple approaches. The Department of Health and Social Care has actively encouraged direct payment uptake, though take-up varies significantly between local authorities.
Becoming an employer through direct payments brings legal responsibilities under employment law, PAYE registration with HMRC, employer's liability insurance (compulsory under the Employers' Liability (Compulsory Insurance) Act 1969 at a minimum GBP 5 million limit), and compliance with the National Minimum Wage. Most councils offer payroll services or contract with brokerage organisations to support direct payment recipients.
Hospital discharge and intermediate care
NHS hospital discharge follows the Discharge to Assess model implemented progressively since 2020. The model emphasises rapid discharge with care arranged in the community, with assessments completed after discharge rather than in hospital. Local authorities provide reablement services for up to 6 weeks free of charge to support recovery and minimise dependency.
Continuing Healthcare assessment can be triggered by hospital admission or discharge where the person has substantial health needs. The CHC checklist is the initial screening tool, followed by a Decision Support Tool assessment for those who pass the checklist. CHC funding, where awarded, covers all care costs without means-testing.
Funding reform and the Dilnot proposals
The Care Act 2014 provided for a cap on lifetime care costs based on the Dilnot Commission's 2011 recommendations. The cap was originally scheduled for 2016, then delayed to 2020, then to October 2025, and most recently to a date to be determined. The cap as proposed would have limited an individual's lifetime contribution to their care to a fixed sum (originally GBP 72,000, raised to GBP 86,000 under later proposals), with the local authority covering costs above the cap.
The most recent government position has been to abandon the Dilnot cap entirely and consult on alternative funding reform. The current means-tested system therefore continues without the planned cap. Specialist policy commentary from organisations such as the King's Fund, the Health Foundation, and Age UK tracks the ongoing reform debate.
Where to get further help
MoneyHelper at moneyhelper.org.uk provides free impartial guidance on UK personal finance topics from the Money and Pensions Service. Citizens Advice at citizensadvice.org.uk provides free advice on benefits, debt, housing, and consumer issues. The FCA's consumer pages at fca.org.uk/consumers cover regulated financial products with consumer-focused explanations. For complaints about regulated firms, the Financial Ombudsman Service at financial-ombudsman.org.uk handles disputes with award limits of GBP 430,000 for cases referred from 1 April 2024.
For specialist topics, professional bodies maintain accreditation registers and consumer information. The Society of Trust and Estate Practitioners at step.org lists qualified estate planners; the Law Society at lawsociety.org.uk lists qualified solicitors; the Personal Finance Society and the Chartered Insurance Institute maintain registers of qualified financial advisers. For regulated financial advice, the FCA Register at register.fca.org.uk is the authoritative check on firm authorisation.
Disclaimer
This article provides general information on UK Powers of Attorney and is not personal legal advice. Each situation differs; regulated legal advice is recommended.
Frequently asked questions
Do I need both types of LPA?
Most people who set up an LPA make both, since they cover different decisions and capacity loss can affect either area.
Can attorneys access bank accounts?
Yes, with the LPA registered. Banks usually require the original or certified copy and may have their own verification procedures.
Can an LPA be cancelled?
Yes, while the donor has capacity, by executing a Deed of Revocation and notifying the OPG and attorneys.
What if attorneys disagree?
Joint attorneys must agree on decisions. Where they disagree, the OPG or Court of Protection can adjudicate.
Can an LPA include digital assets?
The OPG has clarified that attorneys can deal with the donor's digital assets where they form part of the donor's property and financial affairs, but online platforms each have their own terms of service.
Frequently asked questions
Do I need both types of LPA?
Most people who set up an LPA make both, since they cover different decisions and capacity loss can affect either area.
Can attorneys access bank accounts?
Yes, with the LPA registered. Banks usually require the original or certified copy.
Can an LPA be cancelled?
Yes, while the donor has capacity, by executing a Deed of Revocation and notifying the OPG and attorneys.
What if attorneys disagree?
Joint attorneys must agree on decisions. Where they disagree, the OPG or Court of Protection can adjudicate.
Can an LPA include digital assets?
The OPG has clarified that attorneys can deal with the donor's digital assets where they form part of property and financial affairs.
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