A new survey has revealed gaps in the public understanding of the power of attorney system amid fresh calls for urgent reform.

The poll of 2,000 UK residents by consumer campaign group Which? found many people showed a poor understanding of how LPAs work and why they are needed.

Further research also uncovered major and often unnecessary obstacles to registering and enforcing a power of attorney, most commonly from people reporting issues with banks.

The findings come as the Ministry of Justice and Office of the Public Guardian consider what steps to take following a consultation last year on simplifying the LPA process and moving to a predominantly digital service.

Jenny Ross, Which? money editor, said people taking on the responsibility of helping a family member or friend to deal with their financial affairs face an ‘uphill struggle’ to put legal arrangements in place.

Lasting power of attorney

The poll found many people showed a poor understanding of how LPAs work

‘The creaking power of attorney system needs urgent improvement, particularly to address the public’s lack of awareness of how the process works and the difficulties people face when registering with banks,’ said Ross.

‘This problem has been going on for years. Government proposals to modernise LPAs – such as introducing a fast-tracking service, digitising the registration process and improving awareness – are much needed to make the system fit for purpose in the 21st century.’

Which? said its poll found 85% of respondents knew what an LPA was, but only one in seven would give someone else power of attorney over their affairs. Around 16% mistakenly thought that an individual loses access to their financial accounts once the legal document is registered. Three quarters (77%) of people incorrectly thought that an LPA can be set up at any time in life, suggesting they were at risk of putting it off.

Awareness of LPAs was especially low among young people and those on lower incomes.

The consumer group said its research had also consistently found that attorneys encounter problems when registering with banks and other financial firms. In a separate survey, Which? found that the common issues reported for more than 8,000 of its members with a registered LPA were a lack of knowledge among staff (60%), complexities in the process (38%) and delays (28%).

Many said banks lost LPA documents, failed to properly explain the registration process or required them to make unnecessary trips to the branch – even during the pandemic. Once the registration process had been completed, some banks did not authorise full access to the donor’s accounts.