Decision due on controversial Power of Attorney fees

Proposed rules which would see tens of thousands of low earners lose the right to register a Lasting (LPA) or Enduring Power of Attorney (EPA) for free will be finalised next month.

If approved, individuals who earn less than £12,000 and do not receive pension credit will be charged at least £60 for an LPA or EPA, whereas currently they pay nothing.

As two types of LPA are required - one for financial affairs, the other for welfare - the total charge would be £120.

The Office of the Public Guardian (OPG), which registers LPAs and EPAs in the UK, said its existing remissions policy is unsustainable in the current economic climate.

It is among a raft of fee changes put forward by the OPG which are expected to be finalised in September when ministers return from recess.

Stephen Pett, of Allied Professional Will Writers and LPAuk.com, said the change, if approved, will be a blow to low earners who do not have sufficient funds to pay to register an LPA or EPA.

"People should not be discouraged from having proper protection in place. The idea of these rises is to make one of the least efficient civil service functions [OPG] self funding. Why not just make it more efficient? Why target low earners not high earners?"

Meanwhile, Pett also hit out at an OPG proposal to stop supplying two official copies of the LPA or EPA once it is successfully registered.

Previously it made available two free copies of the licence but now it will only make them available "in extreme circumstances", and charge £50.

Pett said some banks and other organisations do not accept photocopies and want to see the original document for proof of its existence.

"We have enough trouble with banks already. Under the new system it may take a year or more to gain control of the finance and welfare after an accident resulting in mental incapacity person as one LPA is passed round ten or more institutions.

"Everyone should get the two free copies automatically. It is bureaucratic insanity."