There is an outstanding £45 million that the government owes to hundreds of thousands of individuals who were overcharged when registering for power of attorney. Unfortunately, the only way to claim a refund now is to submit a written request by post. This change in procedure has faced criticism, with some accusing the government of deliberately making it difficult for people to reclaim their money.
Between 2013 and 2017, the Office of the Public Guardian (OPG) overcharged approximately 1.7 million applicants by £69 million when registering for lasting power of attorney (LPA). The agency admitted to the error in 2018, as its running costs had decreased but the application fees remained unchanged.
An adjustment was subsequently made in April 2017, lowering the fee from £110 to £82. A refund system was also implemented, allowing individuals to claim back between £34 and £54, which included 0.5% annual interest. Those who applied for both property and financial LPAs, as well as health and welfare LPAs, could claim up to £108.
However, out of the 1.7 million affected applicants, only 330,000 have claimed a total of £16.9 million. This means that there are still approximately 1.37 million individuals who have yet to receive their refunds. It’s important to note that the actual number of people affected is likely lower, as some individuals may have submitted multiple applications.
Prior to January 2021, refund claims could only be submitted online. However, the OPG has now allowed claims to be filed by post. Gary Rycroft, a partner at Joseph A Jones & Co Solicitors, criticized this change, emphasizing that families dealing with challenges such as memory loss need a simple and easy process to claim their refunds. He expressed his belief that the shift away from online refunds is a deliberate attempt to discourage people from claiming what they are owed.
Mr. Rycroft highlighted that the refund process is cumbersome and cannot be automated due to various payment methods, including cheques, that are not linked to ongoing digital accounts.
Responding to the criticism, an Office of the Public Guardian spokesman stated that the refund scheme is still open and over £16 million has already been paid out in compensation.
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