3.7 Money Management Team

1. Introduction

When a person who does not have mental capacity does not have someone suitable to act on their behalf, such as a family member, friend or professional advisor, the Court of Protection (CoP) may appoint an independent person– called a deputy – to act on their behalf (see Mental Capacity chapter).

For adults using Central Bedfordshire Council Adult Social Care services in these circumstances the officer authorised to act as a corporate financial and property affairs deputy (the corporate deputy) is the Director of the Adult Social Care and Housing directorate.

The corporate deputy’s duties and responsibilities are in turn delegated to the Money Management team (see Section 5.2, Corporate Deputyship). The team is supervised by the Office of the Public Guardian (OPG), which oversees all deputies appointed by the CoP. When required, the Money Management team can also apply to manage Department for Work and Pensions (DWP) arrangements for an adult, as appointees.

This chapter outlines the role of the Money Management team when acting on behalf of an adult to manage their financial and property affairs.

2. Eligibility

To be eligible for support from the Money Management team, the following criteria should be met:

• the adult has been assessed by the local authority as having care and support needs;
• they do not have any suitable family, friends and associates or professionals who can support them with managing their finances;
• they lack the mental capacity to manage their financial affairs;
• they do not own a property. If they do, they will need to have an independent solicitor or court appointed deputy to manage their affairs;
• the adult does not already have an appointee or Lasting Power of Attorney (LPA) which was made before they became unable to manage their finances; or
• the existing appointee, LPA or deputy has been removed by the DWP / OPG or is otherwise giving up their role.

3. Referrals to the Money Management team

Referrals to the team can be made internally by social care or health staff employed by the local authority. The OPG can also ask the team to act as deputy, to replace a current deputy or attorney.

In order to accept a referral, the following information needs to be up to date and sent to the team:

• all financial and other required details. This includes a copy of the person’s ID (birth certificate, driving licence or passport) and copies of any financial documents available such as bank statements or bank books, latest bills showing accounts with utility suppliers, housing associations / landlords etc;
• a mental capacity assessment, which confirms the adult lacks capacity to make specific decisions about their property and financial affairs;
• confirmation the referral is in the adult’s best interests;
• confirmation that there is no other suitable person who is willing / suitable to manage the adult’s property and financial affairs.

Online banking facilities are used to manage bank accounts and the local authority uses Metro Bank for online Banking and documents are stored on SharePoint.

4. Applications for Authority where there is no other Suitable Person

Where an adult is in receipt of state benefits / pension, the Money Management team should apply to the DWP for authority to be their DWP appointee. They can then receive welfare benefit payments on behalf of the adult and manage their living expenses.

Applications can also be made to the CoP for a property and financial affairs deputyship order.

Where an adult has capital and / or private income in addition to state benefits, the Money Management team should apply for both appointeeship and deputyship.

It may be necessary to request an interim order if there are urgent issues that need action before a final order can be made. Examples include a need to restrict access to the adult’s bank account when there are concerns of financial abuse, or a social housing tenancy needs to end and the property cleared, as the adult has already moved into permanent residential care.

Instead of applying for a deputyship order, a panel deputy can be nominated by the CoP to manage the adult’s affairs. This may be necessary when, for example:

• property and financial affairs are complicated; and / or
• there are legal complexities (for example divorce proceedings).

In such circumstances, the Care Management team should make the request to the CoP.

5. Authority to Act

The Money Management team cannot start managing an adult’s affairs until DWP appointeeship has been granted, or the CoP interim or final deputyship order has been confirmed.

Once authority has been granted, the team should:

• inform all the relevant parties (for example banks and care homes) that it now has authority to act on the adult’s behalf; and
• act only within the limits of the DWP appointeeship or the deputyship order.

5.1 Duties of an appointee

Where the Money Management team is granted appointeeship from DWP on behalf of the adult, it should:

• use money received in their best interests;
• claim benefits and sign DWP forms;
• collect and receive benefits, state pensions and allowances;
• make appropriate payments;
• make sure the adult receives their personal allowance;
• make sure bills or payments are invoiced correctly and due before making payment from their account;
• make sure the adult receives the maximum amount of benefits they are entitled to;
• hold low levels of capital in the adult’s current account and help them to budget / spend this amount.

An appointee cannot:

• receive any other type of income, other than those listed above;
• deal with any debt including debt companies / agencies, except to DWP or the local authority;
• invest or manage bank accounts for any capital level held, however low.

5.2 Corporate deputyship

Corporate deputyship applies when a person has:

• an occupational pension;
• other income not received from the DWP;
• stocks and shares;
• property;
• savings in a bank account.

5.2.1 Duties of a deputy

As a deputy under the MCA Code of Practice, the Money Management team:

• apply standards of care and skill (this is called a duty of care);
• not take financial advantage of the adult’s situation (fiduciary duty);
• not delegate any duties to any other party unless authorised to do so;
• act in good faith;
• abide by information sharing agreements and data sharing legislation (see Information Sharing and Confidentiality chapter and Data Protection Act 2018 chapters);
• insure the adult against liability to third parties caused by the deputy’s negligence;
• comply with the directions of the CoP.

Property and affairs deputies must also:

• keep accounts;
• keep the adult’s money and property separate from their own finances.

6. Supporting the Adult’s Involvement

The Money Management team should always respect the adult’s wishes when managing their finances and possessions and include them in decision making, wherever possible.

The Money Management team must abide by the principles and practice as outlined in the MCA (see Mental Capacity chapter). All financial decisions made on the adult’s behalf must be made in their best interests and involve them, wherever possible (see Best Interests chapter). The team should manage the adult’s finances and assets in a way that is in their best interests, including decisions regarding:

• budgeting;
• decisions regarding use and maintenance of their property;
• investments;
• maximising their income.

When involving the adult in decision-making, as far as possible staff should give the information to them in a format they can understand or make sure that they have any support they need to communicate.

As a deputy, the Money Management team should act in the best interests of the adult and within the terms of the CoP order. If it needs to make a decision which is not covered by the order, it should apply to the CoP.

The team must also consider financial support for activities or items that will improve or enhance the adult’s quality of life.

7. Financial and Property Affairs

7.1 Financial affairs

The Money Management team must manage the adult’s financial and property affairs in accordance with:

• the requirements of the OPG; and
• the local authority’s accounting instructions and other financial policies and control procedures, including best value requirements.

Adults who can receive and manage their own personal spending money should be supported by the Money Management team to do so, with as few restrictions as possible.

Care homes or other third parties, who receive personal spending money on behalf of an adult who lacks mental capacity, must account for how the money was spent and provide evidence of such when required.

Online transactions are the usual method of managing financial matters; cash payments are discouraged and will be strictly controlled and monitored.

The Money Management team should not act as a guarantor.

8. Ending Responsibility

The Money Management team should remain responsible for managing the adult’s affairs until:

• another person is appointed to manage their property and financial affairs;
• the adult regains mental capacity; or
• the adult dies, when the executor or administrator of their estate becomes responsible for managing their affairs.

When an adult dies, the Money Management team should:

• provide the executor / administrator with information about the adult’s property and financial affairs; or
• make a referral to the Treasury Solicitor’s Department / Bona Vacantia where there is no one to administer their estate.

All relevant information should be completed on the adult’s record before closure.

9. Fees Charged by the Money Management Team

Central Bedfordshire Council does not charge adults for the service of the Money Management team when their capital is under £1000. The fees charged by Central Bedfordshire Council are published in the Fees and Charges schedule for Adult Social Care each year:

Annual Accounts, Fees and Charges, Budget Statements and Budget Books (Central Bedfordshire Council)

The CoP publishes information about the level of fees local authorities can otherwise charge adults for managing their affairs. Fees charged by the Money Management team cannot exceed the fixed rates permitted by the CoP.

Charges generally relate to:

• setting up the service for the adult;
• annual fees;
• annual reports;
• maintenance and property support;
• travel costs for visiting the adult and /or their home.

There may be additional services that the Money Management team can charge for, but this is only with the agreement of the CoP.

When the person dies, the local authority can charge an amount to settle the person’s affairs and close the case.

The lead officer of the Money Management team can decide to change or waive fees in particular circumstances, for example if the person cannot afford them.

10. Monitoring and Reporting

The Money Management team should review each adult’s circumstances annually.

The activities of the Money Management team in managing the adult’s affairs should be subjected to both internal and external monitoring, including:

• monitoring and review systems;
• the local authority financial audit procedures;
• supervision and assessment by the OPG.

The Money Management team must provide an annual report to the OPG about each adult whose affairs they manage, as per its reporting requirements.

11. Dissatisfaction / Complaints

Adults, or a representative, who are dissatisfied with service or decision they receive from the Money Management team or feel they have been treated unfairly, can make a complaint to the local authority Adult Social Care complaints office (see Complaints chapter).

Adults, or a representative, may also be directed to the Office of the Public Guardian at any time if they have concerns.

12. Further Reading

12.1 Relevant chapters

Money Management

Information Sharing and Confidentiality

Data Protection Act 2018

Adult Safeguarding

Mental Capacity

13.2 Relevant information

Court of Protection (gov.uk)

Office of the Public Guardian (gov.uk)