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LNB NEWS: MoJ publishes response to consultation on Mental Capacity Small Payments scheme

01 March 2023
Categories: Legal News , Court of Protection , Mental health
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The Ministry of Justice (MoJ) has published the government’s response to the consultation, ‘Mental Capacity Small Payments Scheme’, which ran from 16 November 2021 to 12 January 2022. 

Lexis®Library update: This sought views on reforms to accessing limited funds that belong to an individual lacking mental capacity without a lasting power of attorney or a Court of Protection (CoP) order. The MoJ believes that the CoP digital application process and raising awareness of the Mental Capacity Act 2005 (MCA 2005) will address the root cause of the problem (operational barriers and lack of awareness). Focus will therefore be on addressing key barriers to accessing payments rather than developing a small payments scheme.

223 responses were analysed. View the government's response here.

While respondents felt there was a need to make improvements to the current CoP application process, there was little consensus on proposals for the design of the small payments scheme, the safeguards required, and withdrawal limits.

The responses indicated two areas as the root cause preventing people from accessing funds on behalf of another individual.

First, a lack of awareness of the need to obtain legal authority to access the funds of another adult, and a lack of awareness of the MCA 2005 more generally.

Second, responses indicated various operational barriers in the current CoP application process. Commonly cited concerns included the length, number and complexity of CoP application forms, the perceived costs of making the application, and the time taken to receive the court order. The government considers that the best way to address these is to work with the CoP to improve the process in property and affairs applications.

The MoJ has decided not to proceed with a small payments scheme but will:

• launch a programme of awareness raising engaging with other government departments, financial service providers and charities

• facilitate the digital application process of the CoP whereby both digital and paper versions of the court forms are being reviewed to streamline and simplify content

Source: Mental Capacity Act: Small Payments Scheme

This content was first published by LNB News / Lexis®Library, a LexisNexis® company, on 28 February 2023 and is published with permission. Further information can be found at: www.lexisnexis.co.uk.

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