The Government is changing how Powers of Attorney work: Here’s what to expect

The government says the reforms will make the system faster, safer and easier to use. The changes will move more of the process online, introduce stronger anti-fraud protections and give the Office of the Public Guardian (OPG) greater powers to investigate any suspected cases of abuse.

At the same time, Parliament is considering further reforms through the proposed Powers of Attorney Bill (2024–26), which could place new legal duties on banks, care homes and attorneys themselves.

If you already have a registered LPA, your existing documents should remain valid. But if you plan to create one, or you already act as an attorney for somebody else, the changes could affect how you apply, how quickly your documents are processed and how easily organisations recognise your authority.

The Government wants to move the system online

The biggest shift is the move towards a more digital-first system, right now, registration can take months, particularly if forms contain mistakes or applications get delayed in the post. The government believes moving more of the process online will reduce those delays and make the system easier to manage.

Under the updated rules, you will increasingly be able to apply online, verify identities digitally, track applications electronically and share digital proof of registration with organisations that need to see it.

The government hopes this will make the process less stressful for families dealing with urgent situations involving declining health or loss of mental capacity.

Paper applications are not disappearing entirely. Ministers have repeatedly said people who are uncomfortable using digital services will still be able to apply through traditional paper-based routes. But the overall direction is clear: the future of LPAs is increasingly digital.

Stronger checks are coming to prevent fraud

The reforms are not only about convenience. An attorney can gain significant control over somebody’s finances, property and welfare decisions, and concerns about abuse have grown steadily in recent years. Campaigners and legal professionals have warned about forged LPAs, impersonation fraud and cases where vulnerable people were pressured into signing documents they did not fully understand.

Under the updated system, donors, attorneys and certificate providers will face stronger identity verification checks designed to reduce those risks. The Office of the Public Guardian will also gain broader powers to investigate suspicious applications and intervene where safeguarding concerns arise.

The government hopes the reforms will reduce financial abuse and strengthen confidence in the system overall, although some legal experts have warned that digital identity systems must remain accessible for elderly and vulnerable users who may struggle with online verification processes.

Banks could face greater responsibilities

For many families, the most frustrating part of using an LPA begins after registration. Attorneys regularly report problems with banks and financial institutions, including repeated requests for certified copies, delays accessing accounts and staff who misunderstand how powers of attorney work. In some cases, families have struggled to pay bills or manage care costs while waiting for organisations to recognise a valid LPA.

The reforms aim to reduce those problems by allowing institutions to verify LPAs electronically through official systems rather than relying entirely on paper documents.

The proposed Powers of Attorney Bill (2024–26) could go even further by introducing clearer legal duties for banks when handling LPAs.

That matters because complaints involving financial institutions remain one of the most common frustrations raised by attorneys.

Care homes and attorneys could also take on more duties

The proposed legislation does not only focus on banks. Care homes and care providers could also face clearer obligations around recognising LPAs and understanding who holds legal authority to make welfare decisions.

Families often report confusion when trying to make healthcare or care-related decisions for somebody who has lost mental capacity. Attorneys can find themselves challenged unnecessarily or forced to repeatedly explain their legal authority during already stressful situations.

The government hopes the reforms will create greater consistency across the care sector.The proposed bill would also place additional responsibilities on attorneys themselves. One proposal would require attorneys to notify the Office of the Public Guardian after the donor dies, helping prevent LPAs from being misused after they should legally end.

Existing LPAs will still remain valid

Despite confusion surrounding the reforms, existing registered LPAs should remain legally valid. You do not normally need to replace or “upgrade” an existing LPA simply because the system is changing. The reforms mainly affect how future LPAs are created, verified and managed.

That point has become increasingly important because scammers have already started exploiting uncertainty around the changes. Legal professionals have warned people to be cautious of unsolicited messages claiming older LPAs are no longer valid or urgently require replacement, as in most cases, those claims are false.

Should you wait before creating an LPA?

In most cases, legal professionals still advise against waiting. Although the system is changing, the biggest risk remains exactly the same: losing mental capacity before putting legal authority in place.

If that happens, your family may need to apply through the Court of Protection instead, which can become expensive, stressful and time-consuming. The current system still works, and any valid LPA you create now should remain legally effective after the reforms take full effect.

The 2026 reforms will not completely rewrite power of attorney law, but they will significantly change how the system works in practice. The government wants to create a process that feels faster, more secure and easier to manage, while also placing greater accountability on banks, care providers and attorneys themselves.

Whether the reforms fully succeed will depend largely on how institutions apply the changes in practice. But one thing is already clear: powers of attorney are becoming an increasingly important part of financial planning, later-life care and protecting vulnerable people, and the system around them is finally starting to catch up.