Counting the pennies: financial capacity assessment, law, and policy

The capacity to manage personal finances is fundamental to the autonomy and well-being of older adults, yet cognitive decline increasingly threatens this independence. This paper examines the challenges of assessing financial capacity within the legal framework established by the Mental Capacity Act 2005 (MCA 2005), integrated with the Care Act 2014, in England and Wales. Drawing on novel empirical findings detailing four practical implementation failures – assessment complexity, autonomy/protection tension, fluctuating capacity, and professional training deficits – we argue that effective safeguarding mandates a commitment to a ‘living law’ interpretation of the MCA 2005, where continuous judicial rulings proactively shape policy and practice to address these ground-level realities. This interpretive approach is vital for ensuring the law remains dynamically fit for purpose by empowering continuous Court of Protection jurisprudence to clarify ambiguities and create the effective, empowering support systems that vulnerable older adults require.