A quiet paperwork gap could cost families control when life takes an unexpected turn, from hospital wards to monthly bills.
Martin Lewis has urged households to prioritise a lasting power of attorney, calling it protection that beats a will when crisis strikes. The standard application fee is £82 today, and the government has confirmed it rises to £92 on 17 November.
What is changing and when
The fee to register a lasting power of attorney rises by £10 in mid-November. That date creates a short window to save money if you act now. The change applies to applications made in England and Wales through the Office of the Public Guardian.
Cost today: £82 per application. Cost from 17 November: £92 per application. Two applications are usually needed.
You typically need two separate documents if you want someone to cover both your day-to-day health decisions and your money. That means £164 now, or £184 after the rise, before any solicitor costs.
What a power of attorney actually does
A lasting power of attorney lets you (the donor) choose trusted people (attorneys) to step in if you cannot decide for yourself. It helps if a stroke, dementia, an accident or medical treatment leaves you without mental capacity. You choose who acts, how they act, and when they can act.
The two legal tools you can set up
| Type | Decisions covered |
|---|---|
| Health and welfare | Daily routine, medical care, care home moves, and life-sustaining treatment choices |
| Property and financial affairs | Bank accounts, bill payments, benefits and pensions, selling or renting property |
The health and welfare document only takes effect when you lack capacity. The property and financial affairs document can be used sooner if you choose, for example while you are abroad or recovering from surgery.
Without these documents, families often face frozen accounts, stalled bill payments and months of court delays.
Why acting early matters for younger adults
Many people think this paperwork is only for later life. Martin Lewis says the opposite, pointing out he arranged one in his thirties for peace of mind. Serious illness or a car crash does not check your age.
The risk of locked accounts and the court route
If you lose capacity without a power of attorney, loved ones may have to seek a deputyship order from the Court of Protection. That process can take many months and involves fees, assessments and potential hearings. Banks can restrict joint accounts when one party loses capacity, which leaves partners unable to use shared money for essentials.
A court application also demands ongoing supervision, annual reporting and more costs. Families often need legal help. Stress rises at the worst possible time.
Plan while you are well, choose your people, and you control the rules. Leave it late and a court chooses for you.
How to set one up for £82 today
You can apply online or with paper forms. Many people complete the forms themselves. Others use a solicitor for added support, especially with family complexity or property portfolios.
- Decide who to appoint. Pick one or more attorneys you trust with money and medical decisions.
- Choose how they act. Jointly, jointly and severally, or a mix for different tasks.
- Name a replacement. Add a back-up attorney in case someone cannot serve.
- Add preferences and instructions. State wishes on investments, gifts, care and treatment choices.
- Sign correctly. You, your attorneys and a certificate provider must sign and witness in the right order.
- Register with the Office of the Public Guardian. Registration makes it usable when needed.
Registration times vary with demand. Expect several weeks, and longer if forms contain errors. Build in time so it is ready before you need it.
Fees, reductions and common costs
The registration fee is per document. Most people pay £82 for health and welfare and £82 for property and financial affairs. The fee rises to £92 each on 17 November.
Low-income donors may qualify for a 50% fee reduction if their gross annual income is under a set threshold. Donors on certain means-tested benefits can receive a full exemption. Evidence is required with the application.
Solicitors are optional. Fixed-fee packages are common and vary widely. Expect higher costs for blended families, cross-border assets, or detailed instructions.
Across the home nations
Rules and terminology differ outside England and Wales. Scotland runs a separate system with distinct forms and safeguards. Northern Ireland uses a different model for arranging financial decisions. Check the process that applies where you live before you start, and use official guidance.
Practical scenarios where a power of attorney helps
- A cyclist suffers a head injury. Attorneys manage direct debits, keep the mortgage current and liaise with insurers.
- A parent develops early-onset dementia. Attorneys step in to pay care fees, sell an unneeded car and protect savings.
- A freelancer faces long hospital treatment. An attorney submits tax returns, renews a lease and authorises temporary rent support.
In each case the attorney’s authority prevents harmful delays. Bills get paid, care is arranged, and decisions follow the donor’s stated wishes.
Common mistakes and how to avoid them
- Choosing only one attorney with no replacement. Add a back-up to prevent gaps.
- Leaving instructions vague. Write clear preferences on gifts, investments and care.
- Forgetting to notify people who need to know. Tell banks, advisers and family where documents are kept.
- Signing in the wrong order. Follow the form sequence to avoid rejection and delays.
- Assuming a will covers this. A will controls estate distribution after death, not decisions while alive.
What about wills and joint accounts
A will remains vital for your estate. It does not help while you are alive. A power of attorney fills that gap. The two documents work together, not against each other.
Joint bank accounts are not a guaranteed workaround. Many banks restrict access when one account holder loses capacity. An attorney can lawfully act across sole and joint arrangements, which keeps money moving.
Extra ways to set your wishes in writing
A health and welfare power of attorney lets you name who decides. You can pair it with an advance statement of preferences or an advance decision to refuse treatment. These documents guide doctors and attorneys when time is short and choices carry risk.
Think about insurance and budgeting as part of the same plan. Income protection, critical illness cover and an emergency fund protect cash flow while attorneys handle bills. Review everything after big life events such as marriage, divorce, a house move or the arrival of children.
Sobering read. I didn’t realise banks can freeze joint accounts if someone loses capacity. The breakdown of £82 now vs £92 from 17 November, times two documents, makes the timing clear. Setting this up beats procrastinating, especially if illness or an accident hits without warning.