On 5 November 2026, UK Finance announced initiatives to improve access to banking services for people facing barriers to managing their finances, including those with limited or fluctuating mental capacity.
For those working with adults at risk, the announcement is significant. Banking arrangements often blur the line between those who require support with financial decisions and those who lack capacity to make them. Family members, carers, attorneys, and deputies appointed by the Court of Protection deal with these issues frequently. The proposals seek to improve the support available to assist individuals with their banking, while preserving opportunities for individual choice and participation in financial decision-making.
In this Keynote, mental capacity and Court of Protection specialist Zena Bolwig considers the proposals and their implications.
What is changing?
Three priority areas have been identified:
- Improving third-party access and support, including exploring safer ways for individuals with limited or fluctuating capacity to make payments with assistance from trusted people.
- Improving accessible communications, including easy-read information, support for customers with communication difficulties, and an Inclusive Communications Code of Practice.
- Improving access to bank accounts, particularly where individuals experience difficulties satisfying conventional identity verification requirements.
UK Finance is also supporting work by Project Nemo and the Centre for Finance, Innovation and Technology to develop more inclusive payment arrangements for people who wish to manage their money with assistance.
Decision-specific and the difficulties
The Mental Capacity Act 2005 (the Act) establishes that capacity must be considered in relation to the particular decision requiring determination, at the time it needs to be made. A person may lack capacity to manage complex investments but retain capacity to make decisions about everyday expenditure. Similarly, an individual whose capacity fluctuates may be capable of making certain decisions at some times but not others. The Act also presumes capacity unless established otherwise and requires that all practicable steps are taken to support a person to make their own decision before concluding that they cannot do so. These principles do not always translate comfortably into banking practice.
For family carers, and professional and lay attorneys and deputies, balancing financial protection with personal independence can present considerable practical difficulties. The decision maker may be responsible for managing an individual’s income, savings, and expenditure, but must do so while also ensuring that the individual retains meaningful control over aspects of everyday life where they have capacity to do so. Banking products and procedures have not, historically, readily accommodated arrangements in those circumstances.
Financial independence and safeguarding
For those at risk of abuse, the risks of exploitation, fraud, and undue influence are important considerations. Where capacity is impaired, unrestricted banking access may expose someone to substantial financial harm. Carers, deputies, and attorneys must consider those risks when exercising their authority, but imposing unnecessary restrictions may also have consequences.
For many individuals, being able to make everyday purchases is an important part of maintaining independence, dignity, and participation in ordinary life. Where someone lacks capacity to make a particular decision, section 4 of the Act requires “best interests” decision-making to take account of their wishes and feelings, beliefs and values, alongside other relevant considerations. Section 1(6) also requires consideration of whether the purpose of an act or decision can be achieved as effectively in a less restrictive way.
The question is whether appropriate arrangements can be established to manage those risks while supporting individual choice and independence as much as possible. Controlled spending facilities, transaction limits, monitoring systems, and supported payment arrangements may offer practical solutions, depending on the individual’s needs and circumstances.
Accessible banking and supported decision-making
The proposed changes go beyond improving third-party access to accounts and additionally envisage changes to enable individuals to make decisions themselves where possible. UK Finance’s proposals concerning accessible communications will hopefully help where a person has difficulties understanding conventional banking information. The changes will hopefully mean that there will not be an automatic assumption that they are unable to make financial decisions. Information may need to be explained differently, presented in an accessible format, or communicated with appropriate assistance; those adjustments for people living with cognitive impairments or communication difficulties are a hugely important way of enabling them to make decisions independently.
What should carers, attorneys, and deputies consider?
The proposals do not alter existing duties under the Act or the Equality Act 2010, nor provide an immediate solution to difficulties individuals currently experience with banking arrangements. For now, carers, attorneys, and deputies should continue to consider:
- whether the individual has capacity to make the particular financial decisions in question, rather than relying on a general assessment of capacity;
- what practical support could enable the individual to retain greater independence;
- whether existing banking arrangements are consistent with the terms of an existing LPA or deputyship order;
- whether restrictions on access to money are necessary and proportionate; and
- whether difficulties with a bank can be resolved through clarification of legal authority, alternative arrangements or, where appropriate, an application to the Court of Protection.
Where questions arise about the extent of an attorney or deputy’s authority, the Court of Protection may be asked to clarify. Disputes about capacity, best interests, or financial arrangements may also require judicial determination.
Practical change is key
UK Finance’s recognition that banking services should better accommodate people with limited or fluctuating capacity is encouraging. The challenge will be translating those commitments into arrangements that are accessible, legally appropriate, and sufficiently flexible to reflect individual circumstances.
For carers, attorneys, and deputies, the objective remains to protect those at risk of exploitation or abuse from financial harm while supporting their participation in financial decisions, giving appropriate weight to their wishes and feelings, and avoiding unnecessary restrictions on their rights and freedom of action. The success of these proposals will depend on whether banking practices can properly be structured to accommodate the differing needs and abilities of customers, consistent with the principles of the Act. Consultation with those with lived experience of impairment, as well as professional practice as attorneys and deputies, will be key.
If you have questions about mental capacity, the authority or duties of attorneys and deputies, or disputes concerning financial decision-making and proceedings in the Court of Protection, please contact Zena Bolwig.
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This article is for general information purposes only and does not constitute legal or professional advice. It should not be used as a substitute for legal advice relating to your particular circumstances. Please note that the law may have changed since the date of this article.