Q. My mother-in-law is living with us, and after her pension payments were halted into her Post Office card account by the government, we faced challenges finding a bank willing to open a new account in her name. This is primarily because she cannot provide standard identification like utility bills or a driving license.

Currently, her pension and disability allowance are deposited into the joint account I share with my wife. However, I worry about this arrangement should she require admission to a care home. We possess a power of attorney, yet we’re uncertain about the procedure for opening an account in her name. Additionally, if we are unable to secure this account, will our savings be considered in the event she enters a care facility? – Lee, address provided.

Navigating the financial decisions for a relative can be a complex and stressful experience, which you seem to have encountered. Your apprehensions about the pension being credited to your account are understandable. Though the resolution may not be simple, I have contacted government officials and reputable organizations such as Age UK to provide you with the most suitable guidance.

Establishing a conventional bank account can often be a frustrating venture. Many individuals I speak with struggle to present the necessary photo ID, particularly if they lack a passport or driver’s license. Fortunately, there are alternative forms of acceptable identification and various banking options available.

The governmental policy reform in 2021 regarding pension and benefit deposits into bank accounts acknowledged that numerous individuals faced obstacles in securing an account for diverse reasons.

As a result, financial institutions introduced “basic” bank accounts. These accounts feature lower requirements for proof of identification and reduced credit scoring criteria, although they exclude overdrafts, credit options, and other typical banking services.

Opening a basic bank account with a pension statement should be feasible, especially since you possess a power of attorney allowing you to act on behalf of your mother-in-law. This means you would be satisfying the essential identity verification necessities while demonstrating your authority to manage her affairs.

Nevertheless, many bank representatives may seem confused by such requests, so it’s crucial to remain calm and persistent if told it is not feasible. You can request to engage with a more senior staff member or a specialist in vulnerable customer services. This reflects a broader issue stemming from the decline of bank branch services, where personal attention and assistance were more easily available.

The Financial Conduct Authority (FCA), which regulates the financial sector, stated: “Banks and account providers have been encouraged to enhance awareness of basic bank accounts, enabling individuals to manage payments without offering overdraft facilities.” The FCA identified that many providers could simplify the application process.

For additional assistance in setting up an account, the Money Helper website offers valuable information. Additionally, MoneySavingExpert provides a detailed analysis of banks that cater to those with power of attorney.

If you are unable to open an account, consider applying for the Payment Exception Service, which enables individuals to retrieve benefits or state pensions from a Post Office or retail locations with PayPoint services.

To utilize this service, you will need a payment card or a voucher code, which can be received via SMS or email. More information regarding this process is available on gov.uk.

Moreover, you can take on the role of an “appointee,” granting you the authority to manage someone else’s benefits. Details about this process can be found on the government’s website, or you can search for “becoming an appointee for someone claiming benefits.” Since this is a government initiative, it involves several steps and is not always straightforward. Depending on the benefit in question, you will need to liaise with different departments, particularly the Pension Service in this case.

It’s important to recognize that various procedures will be necessary to determine if it is suitable and safe for you to proceed. The Department for Work and Pensions (DWP) will arrange an assessment visit to evaluate the necessity of your appointee request (discussing this with the DWP beforehand may save time). An interview will be conducted to ensure your suitability.

During the interview, you must complete an application form. If approved, you will receive confirmation and the means to collect payments. The DWP will continue monitoring the situation for as long as the appointee arrangement is in effect.

If your mother-in-law requires care, the local council will conduct a financial assessment to determine her contribution level. This evaluation will consider her income, including pensions and benefits, along with her assets, including savings. In cases with joint assets, councils typically regard 50% of such funds as belonging to your mother-in-law. It is important to note that navigating funding assessments for care can be challenging and may vary by council.

Martyn James is an advocate for consumer rights, addressing issues from utility bills to travel disruptions and compensation claims.