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Are Lasting Powers of Attorney a gateway to abuse?

A recent article in “the Times” stated that five prosecutions a week are being brought due to alleged abuse through a Lasting Power of Attorney. They also quoted a figure of over 2,000 cases a year being investigated. But although this sounds high, it is suspected that 1 in 6 Lasting Powers of Attorney will be abused.

Alan Eccles, the Public Guardian, has said that the majority of allegations relate to financial abuse or neglect.  He also noted that in about 50% of all cases, no wrongdoing is found.

What is a Lasting Power of Attorney?

Known in the business as “LPAs”, these are documents that you create whilst you are alive in anticipation that you may become too ill to manage by yourself. LPAs appoint a person, or people, known as your “attorneys” to act on your behalf in either your finances, your welfare, or both. They can make decisions for you whilst you are alive and can make any decision that you would usually be able to make. When you die, your LPA expires, and your Will takes its place. You can find out more about LPAs and Wills here.

What constitutes abuse of an LPA?

An LPA must be used at all times to benefit the donor (the person who made the LPA). Attorneys must act in their best interests at all times. “Abuse” of an LPA can be wide-ranging. Below could be some typical examples:-

  • Non-payment of care home fees, risking the donor’s eviction
  • Unnecessarily risky investment of the donor’s finances
  • Excessive gifts from the donor
  • Transferring the donor’s property to other people, including the attorney
  • Inaccurate management of finances
  • Not allowing the donor to provide their opinion on the matter where they are able / assuming that the donor cannot make the decision for themselves
  • Benefitting the attorney at the expense of the donor

 

Attorneys are recommended to act in accordance with the Code of Practice, which can be accessed here. If they deviate from guidance in the Code of Practice, they must have a very good reason for doing so. They would be advised to record this reason.

How do I report abuse of an LPA?

There are a number of things that you can do to report abuse. Abuse is a criminal offence, and so you may wish to contact the police. You can also report abuse or suspected abuse to the Office of the Public Guardian, who can investigate the matter. They can be contacted on 0115 934 2777, or emailed at opg.safeguardingunit@publicguardian.gov.uk.

You can also report suspected abuse to the Duty Social Worker.

What should I do if I am concerned that someone I know is being forced to make an LPA?

Report your suspicions to the Office of the Public Guardian on the details above, and they will be able to further investigate if an application is made. If you are aware that the person has instructed a solicitor, it is worth contacting that solicitor and warning them as to your concerns.

If you have any questions about Lasting Powers of Attorney, or anything else relating to wills, trusts or probate, please call our offices on 0116 212 1000 to speak to one of our specialist team. We have offices in Leicester, Wigston and Market Harborough, and also offer home visits.

 

This document is for informational purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given.

Flexible Working benefiting employers and employees alike

Flexible working is, perhaps, the panacea for many parents. In addition, manged in the correct manner, it may be a long-term solution for employers too, facing a skills gap, an issue with finding employees in a post-Brexit Britain and even to resource existing vacancies that require a particular skill or personality fit. So, what is the problem?

According to a recent study commissioned by the hotel chain Travelodge, 86% of unemployed parents want to return to work. However, 59% of mums and dads who are in this subset, wishing to return to work, struggle to find roles that fit around the demands of their school run.

A YouGov poll of 457 parents found that 61% of those surveyed have lost confidence in their workplace ability whilst staying at home to raise their children. Despite this, 67% still have a desire to climb the career ladder.

There were a number of motivators- other than career progression, which the survey found to be the reasons for a return to work. These included 41% who were looking to regain their personal identity and not be seen as ‘just a parent.’ 31% reported that they were bored at home and wanted to gain new skills whilst 26% felt that they missed adult conversation and that this was a reason to return to the workplace.

The YouGov research showed, therefore that many parents want to get back into a job, especially a job that will lead to career progression. The report stated that the first step- finding an employer prepared to be flexible, was the hardest step. With unemployment at a record 40-year low and the lack of information about post-Brexit working arrangements for non-British EU nationals, large employers will need to review their practices when looking to fill vacancies.

Although government welfare reforms are helping, allowing claimants of financial support to work the hours that they can without being penalised, the volumes of flexible working agreements in place have plateaued since 2010. These figures are despite the right to request flexible working being offered to all employees since 2014.

But why is this so? Poorly designed jobs, a culture of longer working hours, 24/7 contact and a constant-responsiveness expectation are at fault, why are things not changing? The Chartered Institute of Personnel Development (CIPD) suggests that unsupportive manager attitudes, limited options for progression and employee assumptions that requests for flexible working hours would immediately be rejected, have resulted in fewer requests being made to employers.

The publication Personnel Today reported recently that parents who do take part-time work are penalised, with just a 21% chance of being promoted in the next 3-years. This research has been carried out by the charity Working Families and the childcare provider Bright Horizons. The chance of the part-time workers’ full-time colleagues being promoted within the same time frame is 45%. Due to the fact that the vast majority of the UK’s part-time workforce is female, this has a major impact on their career progression post maternity leave.

The report found that over 75% of parents are working beyond their contracted hours and of this volume of workers, 60% work extended hours in order to complete their assigned task list and manage their workload. 52% of those interviewed claimed that the extra hours were an expectation that went hand-in-hand with their company culture. If poorly designed job roles, increased demands on work rates and the business culture are to blame, there must be answers to these issues for companies who look in the mirror and address their own shortcomings.   

There is a further reported disparity between the desire to work flexibly and those who actually do so. 49% of those surveyed by the Working Families research worked flexibly, although 86% reported their desire to do so. Over 30% stated that flexible working was simply not available in their workplace. The question is raised, therefore, do employees know that they have a statutory right to request flexible arrangements.

If employees are concerned about the repercussions of a flexible or part-time working request being rejected and the impact on their future career progression potential being thwarted in the minds of the employers if they request such flexibility, what can be done to bridge the gap?

Lawson West employment specialist Carrie-Ann Randall recommends the following when making a flexible working request.

  • Present your request formally, in writing and is dated.
  • Ensure you meet the eligibility criteria required to make a flexible working request (you must have 26 weeks’ continuous employment and only one request can be made within a 12-month period)
  • Outline the change you are seeking and include as much deatil as possible, so your employer can fully understand your request
  • Explain what effect (if any) it will have on your employer and your desired outcome
  • Declare any previous requests, the nature of these and when they were made

 

It has been repeatedly reported in the press in recent years that long hours are having a negative impact on wellbeing. 47% of those surveyed reported that their work was having a negative effect on their sleep. The same volume also claimed that the long hours reduced the amount of exercise they managed to engage in and 43% claimed a detrimental effect on their diet.

When speaking to companies who openly encourage flexible working, parents who do engage with flexible or part-time working hours are incredible valuable to organisations. Where companies were discovered to have excellent policies and practices around flexibility of working hours, part-time and flexible workers significantly outperformed their average full-time peers.

The government, as a part of its Industrial Strategy, is presently consulting over whether there should be a duty on employers to look at whether a job can be done flexibly and then to make that clear when advertising the position, as opposed to the present situation where the onus is on the employee to request an evaluation.

If you are considering a return to work and would like further information on your employee rights, wish to apply for a flexibility review or have had a request for flexibility rejected, contact Carrie-Ann Randall at Lawson West on 0116 212 1000 or via email at crandall@lawson-west.co.uk.

If you have been successful in your application and are now enjoying a working role that suits your needs, we would love to hear from you, too.

 

This document is for informational purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given.

Ethnicity Pay Gap Reporting

In October 2018, the government started a consultation into whether organisations should be required to report on the pay differentials between people from different ethnic backgrounds. This consultation was largely a response to a report by Baroness McGregor-Smith: ‘Race in the Workplace – The McGregor-Smith Review’.

McGregor-Smith’s review found that there are barriers to the career opportunities and progression of people from ethnic minorities, and they are disadvantaged compared to their White British counterparts. These disadvantages manifest themselves in a pay gap. It is important, however, to understand that this pay gap is not often related to unequal wages. Under the Equality Act 2010, it is already an offence to pay a person with a protected characteristic less for the same work as another person who does not have that protected characteristic. The ethnicity pay gap is more indicative of an under-representation of people from ethnic minorities in higher-paying roles, hence the barriers to opportunity and progression found by McGregor-Smith.

The benefits of engaging with ethnicity pay gap reporting

Identifying these problems, the government in its Ethnicity Pay Reporting Consultation stated that, ‘barriers that prevent under-represented groups from realising their full potential need to be broken down’. It is for employers to determine the best way to break down these barriers, and that is perhaps why it is so important that employers have the data with which to determine the best course of action. Indeed, McGregor-Smith highlighted that, ‘transparency in organisations is crucial. Career ladders, pay and reward guidelines, and how and why people are promoted are often opaque. Perhaps more importantly, many organisations do not even know how they are performing on this issue overall’. It is clear, then, that it would benefit businesses to engage with ethnicity pay gap reporting in order not only to address the barriers faced by people from ethnic minorities. Additionally, it would benefit the economy as a whole, since the potential benefit to the UK economy from full representation of BME (Black and Minority Ethnic) individuals across the labour market is estimated at £24 billion a year.

Pay discrepancy among organisations

Nevertheless, it may be naïve to presume that there is not more to the story than a person’s ethnic background. Educational attainment, age, gender, among numerous other cultural, societal and personal conditions can detrimentally affect a person’s career opportunities and progression. The government consultation addressed this issue and determined that ethnicity pay gap reporting would help businesses to identify whether pay disparities are caused by ethnicity alone, or whether they are caused by a host of factors to which an alternative approach beyond a sole focus on ethnicity might be more appropriate. In essence, it is difficult for anyone to decisively name the cause to the pay discrepancy experienced by ethnic minorities relative to their White British counterparts, which is an unfortunate matter of fact. However, we will never be in such a decisive position until we confront the uncomfortable truths, cultivate a transparent approach to recruitment and promotion within companies, and require those companies to publish reports on the status and progress of the ethnicity pay gap.

The crux of the issue, however, as with the gender pay gap, is under-representation. As stated, there are often a number of reasons why a person may get a job or a promotion over another person. However, the EHRC found that most people from ethnic minorities have higher qualifications than White British people. Additionally, BEIS research has shown that the representation of ethnic minorities in senior management positions is below the level expected given the levels of educational attainment, suggesting an under-used talent pool. It could be that conscious or unconscious biases play a larger role in recruitment and promotion than people expect, which reinforces the importance of ethnicity pay gap reporting and a call for transparency as a way of investigating, confronting and addressing those biases.

A recent example providing a warning to employers

Furthermore, there is a danger for employers who take a heavy-handed approach to diversity and inclusion, and perhaps who act without the benefit of the data which would be collected as part of an ethnicity pay gap report. A recent case involving Cheshire Police and a white, heterosexual male applicant, Mr Furlong, demonstrates this danger. The employment tribunal judge ruled that he lost out on his dream job “simply because he was a white, heterosexual male”, and found that Cheshire Police set an “artificially low” pass rate for applicants, awarding a simple pass or fail instead of making decisions based purely on academic merit. This, to Cheshire Police’s understanding, would make the majority of applicants identically qualified, thus enabling them to rely on positive discrimination under the Equality Act to diversify its workforce. However, the employment tribunal disagreed with this practice.

The propriety of such positive discrimination is beyond the scope of this article, but the example should serve as a warning to employers who may seek to use the same tactics in the future. A recommendation to employers is to maintain transparent and fair procedures, and that engaging with an ethnicity pay gap report will provide the best method of addressing inequalities with its workforce. Acting without the benefit of such information may result in more cases like Mr Furlong’s which will prove costly and potentially damage the reputation of employers.

Employment Law support from Lawson West Solicitors

If you require any advice or support in relation to any of the issues covered in the is article; pay gap reporting, ethnicity pay gap reporting, recruitment or workplace diversity, contact us.

In addition to No Win No Fee, Lawson West solicitors act for our clients on a variety of other funding arrangements including Legal Expenses insurance funding. We can assess your case to decide which is the best funding option for you.

With offices in Leicester, Wigston and Market Harborough our employment solicitors and lawyers can discuss your employment law claim at any of our branches. In addition, we are a national provider of expert employment law advice and welcome a free discussion with you regarding your circumstances and potential claim.

If you believe you have a situation where you require free legal advice, please contact us on telephone 0116 212 1000 or 01858 445 480, alternatively fill in our Contact Us form and we will get in touch as soon as possible.

 

This document is for informational purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given.

 

Limiting the time period for bringing a claim in Contentious probate

A landmark ruling in a contentious probate case has recently been reported upon by Gordon Exall, Barrister, Zenith Chambers, Leeds & Hardwicke, London. The case, in which a ‘limitation amnesty’ was agreed between parties in reference to a claim that the monies left on trust by her late husband, were not sufficient to meet her needs, has hit the legal press following a statement in the ruling by Mr. Justice Mostyn.

In the case of Cowan v Foreman & Ors [2019] EWHC 349 (Fam), a number of important principles have been set out in relation to applications for a change to the monies left on trust to a surviving spouse. The applicant wife brought forward an application to claim that an increase in funds was required to achieve the living standards to which she had become accustomed before the death of her husband. The authorised time to make a claim for the applicant had passed in June 2016 following the framework set out within the Inheritance (Provision for Family and Dependents) Act 1975. In January 2018, the respondents’ solicitors wrote to the court, stating that “In the first instance, I can confirm that the executors of Michael’s estate… and the trustees of the two trusts established by Michael’s will… will not take a point on the six-month deadline having passed pending receipt of a letter of claim.”

However, a letter of claim was not sent until May 2018 and proceedings were not issued until November 2018, a total of over 13 months of delay- not agreed by the Court, but by the parties.

This landmark case brought forward the ruling that the parties involved do not have the power to suspend the time period in an inheritance act claim. The judge was very clear in his statement that under the Act, only the Court can decide upon extensions to time. In statement, the judge said; ‘I was told that to agree a stand-still agreement of this nature was “common practice”. If it is indeed common practice, then I suggest that it is a practice that should come to an immediate end. It is not for the parties to give away time that belongs to the Court. If the parties want to agree a moratorium for the purposes of the negotiations, then the claim should be issued in time and then the Court invited to stay the proceedings while the negotiations are pursued. Otherwise it is, as I remarked in argument, simply to cock-a-snook at the clear Parliamentary intention.’

The solicitor’s letter arrived on the 1st May 2018- inevitably halting the moratorium, as is customary. Whether the delay was agreed legally or not, the receipt of the letter moved the case to the next stage, where the claimant must issue their claim immediately. The following 6-month delay until the claim was issued on the 8th November 2018, further frustrated the Court. It was explained that the delay was due to a mediation period between the parties. However, the judge stated that ‘In my judgement that is no excuse for this further delay given the clear terms of the expiration of the moratorium.’ The judge continued to state that ‘the period of delay is very substantial: more than twice the period allowed by Parliament for making a claim. In my judgement, absent highly exceptional factors, in the modern era of civil litigation the limit of excusable delay should be measured in weeks, or, at most, a few months.’

In short, this landmark case has confirmed the need to follow the rules any Acts of law referring to contentious probate. Where it used to be acceptable for parties to agree to freeze time, the Court have now decreed that they cannot.

 

If you require advice or support, are facing issues around probate or a claim on an estate, in the first instance, please contact Madhvi Panchal at Lawson West on mpanchal@lawson-west.co.uk or by calling our Leicester office on 0116 212 1000.

 

This document is for informational purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given.

 

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