Mental Capacity Act 2005: Small Payments Scheme

Debate between Lord Young of Cookham and Lord Bellamy

Thursday 2nd March 2023 Lords Chamber

[Lord Young of Cookham]

To ask His Majesty’s Government when they will respond to the findings of their consultation on the Mental Capacity Act 2005: Small Payments Scheme, which closed on 12 January 2022.

[The Parliamentary Under-Secretary of State, Ministry of Justice (Lord Bellamy) (Con)]

My Lords, the Government published their response to the small payments consultation on 28 February, and a copy of the response is in the Library. The Government consider that it is better to improve the processes of the Court of Protection than to legislate for a separate small payments scheme for adults lacking mental capacity.

[Lord Young of Cookham (Con)]

I am grateful for that reply. It is a happy coincidence that, after waiting 13 months for a response, one appeared 24 hours before this Question was reached. I very much regret that the Government are not proceeding with the small payments scheme. We now have the absurd position that a parent of an 18 year-old with a learning disability can receive tens of thousands of pounds, rightly, from the Department for Work and Pensions after a home visit to make sure that the money is being correctly applied, but the same parent of that same child cannot access the child trust fund—in which the average sum involved is £2,400—without going through a lengthy, bureaucratic and at times expensive process involving the Court of Protection, which deters many parents from going through it. If the Department for Work and Pensions is satisfied that the parent can act as an appointee, looking after tens of thousands of pounds of taxpayers’ money, why cannot the MoJ agree to a similar process, enabling that parent to access the child trust funds that have been provided by the family itself?

[Lord Bellamy (Con)]

My Lords, I recognise that there is a problem in this area, and I am grateful to the noble Lord for raising it. On his specific point about the DWP payments, the Government see an important distinction between public money being paid for the living expenses of a dependent adult lacking mental capacity on the one hand, and the way we deal with the private property and capital of an adult lacking mental capacity on the other hand. In relation to the latter point, the Government are extremely reluctant to undermine the general principle of the 2005 Act that anyone wishing to take decisions on behalf of an adult lacking mental capacity must be authorised by the Court of Protection.