draft Public Guardian (Fees, etc.) (Amendment) regulations 2017

John Howell Excerpts

Tuesday 21st March 2017 General Committees

[The Parliamentary Under-Secretary of State for Justice (Dr Phillip Lee)]

I beg to move,

That the Committee has considered the draft Public Guardian (Fees, etc.) (Amendment) Regulations 2017.

It is an honour to serve under your chairmanship, Mr Flello. The regulations apply to England and Wales and serve to reduce the fee for registering enduring and lasting powers of attorney. The current fee is £110 and it will be reduced to £82. The resubmission fee, paid when an application has to be resubmitted because of an error in the original application, will be reduced to £41 from £55. If Parliament agrees, we intend the changes to take effect on 1 April.

The new fee will be an enhanced fee, allowing us to cover the full cost of registering a power of attorney as well as to ensure the efficient and effective discharge of the Public Guardian’s functions. The power to charge an enhanced fee is contained in section 180 of the Anti-social Behaviour, Crime and Policing Act 2014.

There are currently more than 2 million powers of attorney registered, which comprise both lasting powers of attorney and their predecessor, enduring powers of attorney, which remain valid and may still be registered. In October 2017 we will celebrate 10 years since lasting powers of attorney were introduced. In that time, the Office of the Public Guardian, the body responsible for maintaining a register of powers of attorney, has registered nearly 2.5 million LPAs. The high uptake of lasting powers of attorney is an indication of the success of the Mental Capacity Act 2005. They allow individuals to plan ahead for a time when they may lack capacity to make decisions for themselves and appoint someone they trust to make those decisions for them.

It is positive that so many more people are making powers of attorney, but that has led to a position where the income we receive from fees charged exceeds the cost of delivering the service. A detailed review of power of attorney fees together with an improved forecasting model for volumes of applications, taking into account the ageing demographic and the rise in dementia, has enabled us to take decisive action to reduce fees and bring them closer to the cost of providing the service.

As many more people have been registering LPAs in recent years, increased volumes coupled with greater efficiencies in processing applications have resulted in fees being charged above the operational cost of delivering the service without our having exercised the power provided by legislation to allow us to do that. Clearly, that situation must be remedied, which is what the regulations seek to do.

Furthermore, alongside the reduction in fee, we will also introduce a scheme for refunding a portion of the fee to customers who may have paid more than they should. Full details of the scheme will be announced in due course. We will take such steps as are necessary to ensure that people are made aware of and receive the refunds to which they are entitled.

The Government’s aim is to ensure that the Public Guardian’s functions are properly resourced. We consider that an enhanced fee will go towards funding vital wider functions carried out by the Office of the Public Guardian. The enhanced fee will allow the Public Guardian to ensure that those who cannot afford to pay still have access to the key services offered by the Office of the Public Guardian.

[John Howell (Henley) (Con)]

How many people does the Minister estimate are likely to be affected?

[Dr Lee]

I do not have the number to hand. As I said, 2.5 million LPAs have been granted. The number will be less than that, but I am happy to get back to my hon. Friend with the exact figure.

The fee will also contribute to the cost of the Public Guardian’s safeguarding activities, including the annual cost of supervising deputies appointed by the court to manage the affairs of people who have lost capacity to do so for themselves. I commend the regulations to the Committee.