Ministers have bowed to criticisms over the delays, costs and complexities in new procedures for managing the affairs of elderly vulnerable people.

They have announced a review of the Mental Capacity Act 2005 and as a first step will cut fees for people seeking "lasting powers of attorney" so as to manage the welfare or finances of someone who lacks capacity.

Bridget Prentice, Justice Minister, has said this week that it was planned to cut the fee from £150 to £120; redesign the form and guidance and introduce a new level of supervision for deputies appointed by the court, providing them support and guidance.

The move is the first step in a wider review of the Act by the Public Guardian, Martin John, whose office registers powers of attorney and supervises the "deputies" appointed to manage the affairs of a person who lacks capacity.

Welcoming the review, Olwen Williams, partner with the North West law firm, Stephensons Solicitors LLP, said that at present "significant delays" were "disenfranchising one of the most vulnerable groups of people in society".

The Lasting Power of Attorney (LPA) took over from the previous Enduring Power of Attorney in October 2007. One year on, many of thsoe who wish to make an LPA are facing delays of up to three or four months just to process the application.

Mr Williams said: "Most people who create LPAs are getting older and can foresee a time when they will be unable to deal with their own affairs or when they would simply appreciate someone else's help."

The Office of the Public Guardian, he added, was "totally unprepared" for the volume of applications it had had to deal with. "Consequently there have been enormous delays".

Families were confused by the long 23-page forms and frustrated that the Office would return them if the slightest mistake was made.

New figures from the Ministry of Justice (MoJ) show that in six months to the end of March 2008, just 1256 applications out of a total of 9623 were registered successfully by the Office of the Public Guardian.

The MoJ said that delays had been reduced, and that applications that contained no errors were now being processed in just over eight weeks.

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