Managing your finances can get hard with things like health challenges or hospital stays, for example. Even if you’re doing okay now, it’s a good idea to prepare for the future. And if you ever need temporary help, it’s important to have a plan in place.
When handling money becomes more challenging, having someone else you trust can ensure your finances are taken care of can give you control and peace of mind.
It’s important to choose someone who:
you know well and trust
is happy to help you
can manage their own money well
is confident to make decisions with your best interests in mind, and
you can easily call or text to get help.
It might not be a good idea to choose someone who travels a lot or who might be unavailable when you need them.
You might want your chosen trusted person to manage your money because you are:
ill or disabled, either temporarily or on a long-term basis
housebound
struggling to manage your money online
out of the country for a while, or
struggling to make decisions.
Things they can help you with can include:
looking after your bank accounts, savings, investments or other financial affairs
claiming and spending benefits on your behalf.
Asking for help with your money can seem scary, but it’s easier to do this when you’re feeling well and can talk clearly about what you need.
It’s important to discuss what tasks you want help with to make it simpler for the other person. Things can include help with:
paperwork — you might need some support filling in important documents or understanding certain terms. For example, information about your bank account, tax or benefit payments
meetings — you might ask someone to attend important meetings with you. For example, with a solicitor, financial adviser, or benefits adviser
day-to-day spending — you might speak to someone for help about managing your money daily.
This guide shows informal ways someone can help you with money. After reading this, you might decide that a lasting power of attorney is a better option.
If you need someone to make choices on your behalf, you can make and register a power of attorney. A power of attorney is a legal document that lets you give one or more person the power to make decisions and manage:
your money and property, and/or
your health and welfare.
They can help you with:
temporary situations – for example, you’re in hospital or abroad and need help with everyday tasks such as paying bills
longer-term situations – for example, you want to plan for the unexpected or have been diagnosed with dementia and might lose the mental capacity to make your own decisions in future.
The Priority Services Register, also known as the Customer Care Register in Northern Ireland, is a free support for utility customers that offers extra help like:
providing your bills in large print
braille, or
send them to someone else you trust.
You might also get support during emergency and help tailored to your needs.
Ask your electricity supplier, gas provider and water company about the Priority Services Register to find out what they can offer you. You can find their contact details on their website or on a letter or bill.
Scams are getting more sophisticated. Find out more about how to recognise and protect yourself and others in our beginner’s guide to scams.
Scams and fraud are a significant concern to watch out for when helping someone with their money, along with financial abuse.
If credit fraud has already happened in the past, either as the result of a scam or financial abuse, apply to Cifas for Protection RegistrationOpens in a new window This will make lenders aware, so they carry out extra checks of any applications for credit.
Financial abuse can be when someone:
takes out money or gets credit in your name without your knowledge or permission
makes you hand over control of your accounts
cashes in your pension or other cheques without your permission
adds their name to your account
asks you to change your will
has offered to buy shopping or pay bills with your money, but you don’t see this happening
stops you from seeing other friends and family.
Never hand over your cards, PIN or bank log-in details. There are options where you can get help with your money without giving away full access to your accounts. Putting something like this in place can mean you’ll be less vulnerable to financial abuse.
Find out more about help paying for things
Find out what actions you can take to make it simpler for you or someone you trust to pay your bills.
Direct Debits and standing orders make sure your bills are paid automatically from your bank account, so you never miss a payment and always pay on time.
Setting up a Direct Debit is good for varying amounts like utility bills. While standing orders work well for fixed amounts, like rent. You decide how much and when to send the money.
Identify your bills
List the bills you need to pay regularly, such as rent, mortgage, utilities and insurance.
Contact your bill provider
Get in touch with the companies or individuals you owe money to. Ask if they offer Direct Debit options and provide the necessary details.
Remember to check your bills regularly and know when they’re due, especially for things like energy bills that can vary. Also, keep an eye on your bank statements to catch any unexpected changes or things you no longer need. If there are any issues, contact your bank or bill providers.
Use our free Budget planner to help you keep track of your spending. Having the right amount in your account ensures your bills are paid without problems.
If you have tax due through Self Assessment and worry about missing the deadline, contact HMRC to explain.
You can ask a friend, family member, or a professional like an accountant to assist with your taxes. If your situation is complex, you can let an accountant handle your account with your permission.
There are many other organisations that can help with your taxes:
TaxAidOpens in a new window provides free, independent advice on tax issues for people on incomes of £20,000 a year or less.
Tax Help for Older PeopleOpens in a new window provides free help with tax problems to those who are close to 60 and are on an income of up to £20,000.
The Low Incomes Tax Reform GroupOpens in a new window provides guidance to people who might not be able to afford professional advice.
Make sure your insurance stays current when you move or your needs change.
If it’s hard for you, tell your insurance company what extra support they can provide. They might allow you to have someone else speak to them on your behalf.
But if you need someone to make choices or claim on your behalf, you might have to set up a power of attorney.
Find out more about help with banking
There are a number of ways you can get help with your banking, so make sure you pick the one that best suits your needs.
A third-party mandate is a document that tells your bank, building society or other account provider that they can accept instructions about that your money from a specific named person.
It can be a good option if you:
need help managing your day-to-day banking
are waiting for your power of attorney to be set up
are going abroad for a long time
speak to the bank or account provider to request a third-party mandate arrangement.
Be aware that a third-party mandate isn’t appropriate if the account holder is losing the ability to make relevant decisions themselves.
If you give a third-party mandate to someone you trust, they can typically:
make payments
set up standing orders
discuss transactions, and
order statements.
But they usually can’t:
use online banking or mobile apps
use debit or credit cards
use ATMs
apply for new loans
open new accounts, or
close existing accounts.
To find out what you’re allowed to do with a third-party mandate, just ask your bank about their rules.
A carer’s card account lets somebody you trust use your current account to pay for the things you need with their own debit card.
They can use the card to withdraw money or do your shopping, but they can’t make changes to the account, and you can set a limit to how much money they can access.
Not all accounts come with this feature, so check with your bank.
Setting up a joint bank account can give a trusted person access to the money in your account. This means they’ll be able to draw out money for you without needing permission and use other banking facilities offered by the account – such as overdrafts.
You can open a joint account with someone else or change an account you already have so that it’s held in joint names.
It’s important to make sure that you’re opening a joint account with someone you trust completely. Remember:
Don’t open a joint account if one of you has bad credit as it will affect both of you.
Keep a separate account for non-bill expenses.
You’ll have less privacy as spending is visible.
It’s tough to get back money taken from the joint account.
All account holders are responsible for overdraft debt.
If you die, the other will still have access.
Find out more about help with benefits
If you can’t manage your benefits yourself, you might be able to have a trusted person claim your benefits on your behalf.
If you want someone else to manage your benefits or State Pension, you might like to arrange for them to be made your appointee. This means they can talk to the Department for Work and Pensions (DWP) on your behalf and make decisions about your benefits for you.
The DWP can come to your home or at hospital to help you with your benefit claim if you:
have complex needs
are disabled
have nobody else to support you
cannot claim benefits in any other way.
All you need to do is tell the DWP you need help to claim benefits by calling the number of the benefit you’re applying for.
You can ask another person or organisation to deal with your claim if you feel unable to:
find the information you need, or
understand things about your claim.
This person or organisation is known as a ‘representative’. A representative is different to an appointee as it is not a legally based appointment.
You can do this at any point during your claim. Your representation will:
act for you, and
have access to relevant information about you.
