The Ministry of Justice and Office of the Public Guardian yesterday announced a refund scheme for those who registered for a Lasting or Enduring Power of Attorney between 1 April 2013 and 31 March 2017.
Old Mutual Wealth obtained freedom of information figures, enabling Chartered Financial Planner Rachael Griffin FPFS to estimate the numbers of people who could be reimbursed.
Ms Griffin, a tax expert at Old Mutual, said: “1.8 million people are eligible for a refund from the Ministry of Justice, which has announced that those who have paid for a Lasting or Enduring Power of Attorney from April 2013 to March 2017 can claim a refund worth up to £54.
“The Ministry of Justice is only supposed to charge enough to cover the cost of providing the service, but the large number of applications meant it made a £89 million surplus, which it now needs to repay.
“With the continual rise in dementia, there is a very real risk that people will be left in a vulnerable position if they don’t register a Lasting Power of Attorney. Those with dementia are particularly vulnerable to the theft or illegal use of their property, money or other valuables.”
Ms Griffin, a STEP member, said: “There has been a steady growth in the number of Lasting Power of Attorneys registered and dispatched over the last few years, with an 18% increase in the first half of 2017 compared to the first half of 2016. However, growth has slowed as between 2015 and 2016 there was an annual increase of 26%. More still needs to be done to raise awareness for LPAs, especially as the number of people with dementia continues to rise.”
The Government has released a statement, which read: “During this period, the Office of the Public Guardian’s (OPG) operating costs came down as more people applied to register a power of attorney and the process became more efficient, but the application fee charged was not reduced in line with this.
“The Ministry of Justice, which sets OPG’s fees, reduced the application fee with effect from 1 April 2017, and has now launched a refund scheme for those who paid a higher fee in the qualifying period. The scheme will be run by OPG.
“Making a claim is quick and simple using the online service. Only one form needs to be completed for each donor and OPG will find all Power of Attorney application fees paid by the donor during the qualifying period.”