Court of Protection Clarifies Rules on Direct Payments | What Deputies Need to Know

The recent Court of Protection judgment has provided some much-needed clarity for deputies managing Direct Payments on behalf of vulnerable individuals.

In September 2026, the Court handed down its decision in In the Matter of Various Applications in Respect of Direct Payments [2026] EWCOP 42, building on the earlier Lumb judgment from 2024. The new ruling addresses the ongoing uncertainty and grey areas that often surround the authority required for deputies to manage Direct Payments under a range of funding schemes. These schemes include NHS continuing healthcare funded care packages and local authority Direct Payments, which are two of the main areas that deputies make direct payments for their loved one. 

The Court confirmed that managing Direct Payments is not simply a financial task. It involves a combination of both financial and welfare decision-making, which means that the general authority granted to a Property and Affairs Deputy is not automatically sufficient. In many cases, specific authority from the Court of Protection will now be required.

The latest judgment also provides practical guidance on: 

• when applications should be made
• what evidence is required
• when retrospective authority may be necessary
• how deputies should approach the costs associated with managing Direct Payments

For deputies, attorneys, families and professional advisers, these changes are particularly important where care packages are funded through a combination of both Direct Payments and private funds. In turn, this means that failure to obtain the appropriate authority could have huge implications for decision-making and the recovery of deputyship costs.

How our specialist Court of Protection Team can help you: 

For many deputies, clarifying the responsibilities of their role can often be complex and overwhelming – especially when ensuring that all financial decisions that are made are both correct and legal. At Moore & Tibbits Solicitors, our Court of Protection | Property & Finance specialists can advise deputies, attorneys, case managers, and families on the impact of these changes. 

The new judgment provides welcome clarity, but it also introduces important considerations for those involved in managing care funding. If you are unsure how these changes affect you or a loved one, our experienced Court of Protection team is here to help.

For advice on deputyship matters or Court of Protection applications, contact Marie O’Malley who heads up our Court of Protection Property and Finance team today on 01926 491181 or email: cop-property-finance@moore-tibbits.co.uk