Acting Under a Lasting Power of Attorney: Benefits and Direct Payments

Written and reviewed by the Private Client team at Muckle LLP, in partnership with Carents. Last reviewed Oct 2026. Click here for full legal dislaimer.

Why do so many older people miss out on benefits?

It is surprisingly common for older people to miss out on benefits simply because they have never applied for them.

As an attorney, part of your role is to act in the best interests of the person who made the Lasting Power of Attorney, known as the donor. That can include making enquiries about benefits and financial support that could improve their quality of life.

What is Attendance Allowance and can your parent claim it?

Attendance Allowance is available to certain people above State Pension age who need help or supervision because of illness, disability or cognitive impairment. Many families discover that a parent with increasing care needs has never claimed it, despite potentially having been eligible for some time.

If your parent has not had a benefits check, it may be worth speaking to a welfare benefits adviser. Citizens Advice can be a good starting point. Some local authorities and local charities also provide free welfare benefits advice and support.

Will the local authority identify all available support?

Not necessarily. Many attorneys assume that once social services become involved, they will automatically identify all available funding, benefits and support. In practice, the system can be complicated, and different organisations are often responsible for different aspects of support.

Attorneys can play an important role in asking questions, checking eligibility and making sure opportunities for financial assistance are not overlooked.

Benefits rarely exist in isolation. A successful claim for one benefit may increase your parent's entitlement to other support, including Council Tax Reduction or Pension Credit. Equally, some benefits can affect other payments the individual or their carent receives.

A decision about one benefit can sometimes have knock-on effects elsewhere. This is one reason why specialist benefits advice can be particularly valuable when a number of different payments are involved.

What are Direct Payments?

The flexibility of Direct Payments can be attractive. It can allow support to be tailored around your parent's preferences and routines, rather than fitting into a standard care package. For example, Direct Payments can be used to employ a personal assistant or to organise activities that help meet assessed care needs.

Can carents also receive Direct Payments?

Many people assume Direct Payments are only available to the person receiving care. However, carents may also be entitled to support in their own right.

Following a carer's assessment, a local authority may provide a carer's personal budget, which can in some circumstances be taken as a Direct Payment, to help meet the carent's assessed needs and support their wellbeing.

Where a parent lacks capacity and you are acting under a Property and Financial Affairs LPA, you may become involved in administering Direct Payments on their behalf. In some cases, you may also receive support in your own right as a carent, following a separate carer's assessment.

It is important to remember that these are separate forms of support. They arise from different assessments and are intended to meet different needs. Keeping them separate, and keeping clear records, is good practice and often essential.

Managing Direct Payments can involve:

• Managing the bank account through which Direct Payments are received and spent
• Keeping records of how funds are spent
• Providing information requested by the local authority
• Ensuring money is used in accordance with the agreed care plan
• Overseeing care arrangements and service providers

Local authorities will usually expect records to be maintained and may review how funding has been used.

One of the practical challenges attorneys face is managing money that belongs to someone else. It can be easy to use personal accounts for convenience, or to lose track of which payments relate to whom, particularly when you are juggling work, family responsibilities and carenting.

As an attorney, it is generally good practice, and often essential, to maintain clear records and keep your parent's finances separate from your own. This becomes especially important where local authority funding, Direct Payments or means-tested support are involved.

Good record-keeping can prevent considerable stress if questions are raised later by a local authority, other family members or financial institutions.

You do not need to become an expert in welfare benefits, social care funding and financial administration overnight. The key is understanding when to seek help.

It is sensible to consider a benefits review when there has been a significant change in finances, living arrangements or care needs. It can also be worthwhile reviewing entitlement periodically, even where circumstances have remained broadly the same, as eligibility criteria, benefit rates and the wider benefits system can change over time.

Where detailed benefits advice is needed, speaking with a specialist welfare benefits adviser, your local authority benefits team, or Citizens Advice is a good place to start.

Being an attorney is a significant responsibility, and an opportunity to make a real difference to your parent's wellbeing. Taking the time to understand available support, checking that benefits are being claimed where appropriate, and ensuring Direct Payments and care funding are properly managed can help improve both quality of life and financial security.

You do not have to navigate these issues alone. Seeking advice early can often prevent much bigger problems later on.

This article was produced in partnership between Muckle LLP and Carents. For legal advice specific to your situation, please contact the Muckle LLP Private Client team.