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Lasting power of attorney rejections soar 200% costing families £5 million – how to get it right
Reasons for lasting power of attorney applications being rejected include human error but can also be due to the inconsistent views of those reviewing the application.
Families have had to foot an estimated £5 million bill for failing to properly file the correct lasting power of attorney paperwork, according to new data.
A total of 133,760 lasting power of attorney (LPA) registrations were rejected in England and Wales in 2024, as the number of applications soared to nearly 1.5 million.
That marked a record 199% rise in LPA rejections in England and Wales in 2024 compared to 2021, figures from a Freedom of Information request to the Office of the Public Guardian showed.
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This soaring level of rejection is costing Brits an estimated £5 million, according to analysis by law firm WSP Solicitors, which obtained the figures.
The calculations are based on LPA applicants paying at least £41 per application – half the £82 fee due in 2024 – to account for those who can claim a part fee exemption based on income or benefits earning less than £12,000 per year.
In reality the cost could be even higher for those with full fee applications. And the bill is set to increase, due to the £10 rise in the LPA application fee from 17 November, which will take it to £92.
If an application is rejected and you fail to reapply within three months, the full cost will be charged every time.
Rob Selwood, co-head of wills, trusts and probate at WSP Solicitors, said: “The data shows there has been a huge increase in overall LPA applications since 2020, which is likely due to increased media and social media exposure leading to greater public awareness of these types of protections.”
What is a lasting power of attorney?
A lasting power of attorney (LPA) is a legal document that allows you to appoint trusted individuals, called attorneys, to make decisions on your behalf if you are unable to.
It is for people aged 18 or over who have the mental capacity to create one and have the ability to make financial, property, and medical decisions for themselves.
In England and Wales there are two types of LPA, one for protecting an individuals’ health and welfare decisions and another which looks after their property and personal finances.
Health and welfare lasting power of attorney can only be used when you’re unable to make your own decisions. You can use this LPA to give an attorney the power to make decisions about things like:
your daily routine, for example washing, dressing, eating
Property and financial affairs lasting power of attorney can be used as soon as it’s registered, with your permission. It gives an attorney the power to make decisions about money and property for you, for example:
Health and welfare LPA applications (687,796) continue to fall behind finance and property LPAs (807,974) but still grew by 216% and 203% respectively, according to the FOI data.
The Office of the Public Guardian (OPG) is an executive agency of the Ministry of Justice (MOJ) that protects people who lack the mental capacity to make their own health and financial decisions, as well as supervising deputies appointed by the Court of Protection.
Deputies are appointed when a person is judged under the Mental Health Act to be unable to make decisions for themselves and doesn’t have either an LPA or its predecessor, an Enduring Power of Attorney (EPA), in place.
Why are lasting powers of attorney rejected?
Applications for lasting power of attorney can be rejected for a number of reasons, both a result of human error of those filling out the application, but can also be due to the views of the person from the Office of the Public Guardian reviewing the application.
“For instance, applications can be refused for simply writing a name or date not clearly enough, which can be more subjective and highlights an inconsistent approach across the reviewers,” said Selwood.
As well as discrepancies and illegibility of dates and signatures, information being in the wrong place and sections of the LPA not being signed and dated in the correct order are also other common reasons.
While time frames are moving in the right direction, rejection rates remain stubborn. Last year, 8.9% of the 1.5 million applications were rejected, only a slight dip on the 9.4% refused in 2021.
“With an LPA application having a significant cost, it’s crucial to ensure every section is completed accurately and clearly from the outset,” said Selwood.
“Taking the time to double-check details or seeking professional guidance can help avoid unnecessary delays, additional fees, and the frustration of a rejected application.”
Younger people and women applying for LPAs
As part of their investigation analysing the Office’s most recent annual report, WSP Solicitors also uncovered trends which include a surprising 204% national increase in the number of 18-24 year old applicants seeking protections and a 217% increase in 25-34 year old applicants.
Selwood said: “It’s encouraging to see later life planning is becoming more of a priority across younger age groups too, which may also be a consequence of younger generations being more IT literate.”
Swipe to scroll horizontally
Latest increase in LPA applications in England and Wales by age
RANK
INCREASE
TOTAL QUANTITY
APPLICANT AGE GROUP
1
228%
239,625
55-64
2
220%
510,772
65-74
3
217%
9,145
25-34
4
214%
26,352
35-44
5
212%
407,423
65-74
6
205%
70,849
45-54
7
204%
3,378
18-24
8
152%
227,941
85+
Age wasn’t the only area of interest, the law firm also found that female applicants remain higher than male counterparts, with an average of 35.5% more registrations each year over the same period.
How long does it take to get a lasting power of attorney?
Despite a significant increase in the total number of applications over the last four financial years, waiting times for LPAs are continuing to fall.
Last year approvals took 48 days on average, including the mandatory cooling off period of 28 days. This is still above the OPG’s own target of 40 days.
However where further investigations were needed, LPA completions took nearly double the 70 day target at 138 working days.
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Laura Miller is an experienced financial and business journalist. Formerly on staff at the Daily Telegraph, her freelance work now appears in the money pages of all the national newspapers. She endeavours to make money issues easy to understand for everyone, and to do justice to the people who regularly trust her to tell their stories. She lives by the sea in Aberystwyth. You can find her tweeting @thatlaurawrites
