Lasting Power of Attorney

Sarah Sackman Excerpts

Tuesday 28th October 2025 Westminster Hall

[The Minister of State, Ministry of Justice (Sarah Sackman)]

It is a pleasure to serve under your chairship, Ms Vaz. I thank my hon. Friend the Member for Leeds North East (Fabian Hamilton) for continuing to raise awareness on this extremely important subject.

While I cannot speak to the individual cases that my hon. Friend raises, I send my deepest sympathies to those individuals impacted by the behaviours and abuse he describes, which were directed at them by people who had been selected to protect them and trusted with lasting power of attorney. I recognise the personal and financial impact on those affected people, and the impacts that are more widely felt by families.

My hon. Friend drew attention to the risk of abusers misusing lasting powers of attorney, and he highlighted the Office of the Public Guardian’s important role in investigating such concerns when they arise. His strong, ongoing commitment to raising awareness of those issues is welcome. As many hon. Members will know, he tabled a ten-minute rule Bill on this subject at the end of last year. That Bill has not yet reached Second Reading, but I know that he continues to engage across the mental capacity sector to raise awareness of it. As he noted, we met and discussed the Bill and his work in this space, and I welcome that engagement. I know that he has also engaged directly with the Office of the Public Guardian so that they can work together. Today’s debate is another demonstration of his dedication to the issue.

For context, the Mental Capacity Act 2005 provides the legal framework for supporting individuals who may lack capacity to make specific decisions. It ensures that any decisions made on a donor’s behalf are in their best interests, and that their rights and autonomy are respected. A lasting power of attorney is a legal document that allows a person—the donor—to appoint one or more trusted persons to make decisions on their behalf if they lose mental capacity. In that sense, at its best, it is a source of empowerment for individuals.

As my hon. Friend rightly points out, we need to set the very real issue of financial and economic abuse in context. The evidence demonstrates that the incidence of such abuse is thankfully relatively rare. At the end of 2024-25, the Office of the Public Guardian had 9.3 million lasting powers of attorney on its register. A total of 11,300 concerns were received by the Office of the Public Guardian during 2024-25. Some 96% of those concerns were responded to within five working days. Of those concerns, 3,800 cases led to a full investigation by the OPG, and 24% of completed investigations resulted in court action.

That does not for one second diminish the significance of the impact of abuse in individual cases, but it tells us that cases of abuse are rare in the context of a powerful and empowering tool for many. We want the LPA to be accessible, affordable and empowering. Indeed, I was advised by my officials that we should all take one out—obviously, through the proper processes and with the proper safeguards. It is important to set this discussion, which centres on the role that banks and financial institutions play, in the context of the existing regime and its safeguards.

LPAs must be registered with the Office of the Public Guardian before they can be used, and there are safeguards in place to protect against abuse. A lasting power of attorney must contain a certificate, signed by a person with relevant skill and expertise or by someone who has known the donor for at least two years. That person confirms that the donor understands the LPA, and that no fraud or undue pressure was applied in the making of it. That confirmation is an important protection against the coercion and abuse that we have been discussing. There is also an existing statutory right for attorneys and persons named in the LPA to object to its registration if they have concerns about how the LPA has been made. Once the LPA is registered, anyone—any third party—can raise an objection about how it is being used for the Office of the Public Guardian to consider. Those are the concerns that I spoke about, which in 3,800 cases last year led to an investigation and, in many cases, to court enforcement.

As I have said, the abuse of LPAs can have serious financial and personal consequences. The OPG plays an important role in identifying and responding to such cases. It investigates concerns raised about an attorney’s actions. It has powers to request information from individuals and organisations such as banks, care providers and medical professionals. It can ask attorneys to explain their decisions and to provide records. If the investigation reveals serious concerns, the Office of the Public Guardian can apply to the Court of Protection to suspend, restrict or remove an attorney.

The Court of Protection plays a crucial role in protecting individuals from the abuse or misuse of powers under a lasting power of attorney. It can order the revocation or suspension of LPAs or the removal or replacement of attorneys if it determines that the attorney is acting contrary to the donor’s best interest. If a donor has lost capacity when a lasting power of attorney is revoked and there is no other attorney to act, the Court of Protection can step in and appoint a deputy to manage the donor’s affairs. It can also issue orders to protect the donor, such as freezing bank accounts or prohibiting certain actions by attorneys. If an attorney’s behaviour raises concerns but does not breach the criminal law, the OPG can still order remedial actions.

The point I seek to make is that we have a regime that contains a sequence of safeguards designed to guard against the very abuse that my hon. Friend the Member for Leeds North East raises. It is also important that we scrutinise and hold the Office of the Public Guardian to account. That is the job of the Ministry of Justice, so I take very seriously the cases that my hon. Friend has raised, particularly where there are suggestions that the Office of the Public Guardian has not been as proactive as it might have been. That ongoing performance review of the OPG is critical.

I want to look ahead to the future. I am not for one second seeking to minimise the severity of what my hon. Friend described, nor seeking to suggest that there is not room for improvement or that we cannot strengthen those safeguards, because that will be a critical part of modernising the lasting power of attorney. As others have mentioned, such powers are only going to become more critical in an ageing society with growing numbers of people losing mental capacity through conditions such as Alzheimer’s or dementia.

As a Government, however, we are committed to going further and modernising the service to increase the safeguards in the lasting power of attorney process and to improve access to them. The Powers of Attorney Act 2023 introduced several provisions to enable a modernised system. To combat fraud and abuse, the Act will facilitate the introduction of further identity checks for parties making an LPA. The Act also lays the groundwork for reforms to the objection process so that any third party—typically organisations already involved with vulnerable adults, such as local authorities or the police—can object to an LPA being registered. Those reforms, which are in train, are designed to make the LPA system more secure, providing greater protection for individuals appointing attorneys to manage their affairs.

I am conscious of time but I will say something quickly about banks. My hon. Friend will understand that the Treasury leads on the regulation of the banking sector and on safeguards for vulnerable consumers, including those with LPAs. I am not a Treasury Minister but I want to reassure my hon. Friend that the Government work closely with the Financial Conduct Authority, which is the independent regulator, on vulnerable customers, including vulnerable donors of LPAs. In 2023, the FCA introduced the consumer duty. Banks, of course, are also subject to the financial abuse code, the Equality Act 2010—

Motion lapsed (Standing Order No. 10(6)).