Navigating the evolving compensation landscape

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Over the past decade, compensation awards have become far harder to manage, driven by rising care costs, increasing caseloads and more complex long‑term needs. Recent analysis shows average past care costs rose by 82% between 2020 and 2024, while future care costs increased by 65%, placing significant pressure on settlements set years earlier.¹ At the same time, awards have become more sophisticated, often combining lump sums with Periodical Payment Orders (PPOs) and long-term planning horizons. Deputies now need not only legal expertise but a detailed understanding of care markets, inflation risk and financial sustainability. Care‑sector wage inflation, used to index PPOs, rose to 7.25% in 2025² – outpacing wider inflation, adding further uncertainty.

Protected parties therefore need specialist, adaptive financial support, requiring strong partnerships between deputies and investment professionals to build sustainable long‑term strategies.

“Our role goes far beyond managing finances. We help protected parties navigate the emotional, practical and financial shift that follows settlement.”

Caroline Featherby, Court of Protection Deputy, Barcan+Kirby

Navigating post‑settlement complexity

When a serious injury settlement finally arrives, families often expect life to become simpler. After years of litigation and uncertainty, receiving the award can feel like the end of a long struggle; however, the realities of managing awards can be more complex than families anticipate.

“Our role goes far beyond managing finances,” says Caroline Featherby, Partner and Court of Protection Deputy at Barcan+Kirby. “We help protected parties navigate the emotional, practical and financial shift that follows settlement. Managing expectations and providing steady, realistic guidance is essential during that transition.”

“The settlements landscape has shifted considerably in recent years,” Featherby says. “A few years ago, deputies had much broader general authority. Now, the framework is far more detailed, and we need court approval for many decisions that were previously routine — from buying or selling property to entering tenancy agreements or arranging care assessments.”

“These goals still remain achievable,” she adds. “However, they now involve additional applications, documentation and timeframes that inevitably affect how long funds can last.”

She emphasises that this shift requires deputies to adapt their approach: “Our role now involves being more strategic and forward‑thinking – anticipating what permissions may be needed and coordinating applications in a way that keeps things moving steadily for the people we support.”

“A few years ago, deputies had much broader general authority. Now, the framework is far more detailed, and we need court approval for many decisions that were previously routine — from buying or selling property to entering tenancy agreements or arranging care assessments.”

Caroline Featherby, Court of Protection Deputy, Barcan+Kirby

Effective settlement management in a complex landscape

Rising care costs and long‑term needs add significant complexity after settlement, meaning awards that appear substantial must be carefully managed to support protected parties sustainably throughout their lifetime.

“What looks like a life‑changing sum on paper can seem very different once you factor in rising care costs and the need for long‑term stability,” Featherby explains. Deputies help families understand how far an award must stretch. “Our role is to show the full picture without overwhelming them,” she says.

With compassion and clarity, deputies guide protected parties through budgeting, decision‑making and the new responsibilities that come with managing a large sum of money — often for the first time. It’s challenging work, requiring sensitivity as well as guidance. “These conversations aren’t always easy,” she says, “but they are essential. We support families in making decisions that feel right today and still serve protected parties well in the years to come.”

Though the system is undoubtedly more complex than it once was, Featherby explains that the focus remains firmly on finding practical ways to navigate any challenges that arise. “There’s no perfect pathway, but there are always workable solutions when you take the time to understand a family’s situation and what the protected party really needs.”

By bringing together legal expertise, financial awareness and emotional intelligence, deputies help families confidently navigate a complex landscape through a clearer lens.

Ensuring sustainable award management practices

One of the core challenges in managing modern compensation awards is ensuring they remain sustainable throughout a protected party’s lifetime; deputies must now take a more strategic and forward‑looking approach than before.

“A £2 million settlement today doesn’t stretch nearly as far as it did ten years ago,” she says. “When the goal is to support someone over their lifetime, the settlement must be managed so it remains sustainable far into the future.”

Caroline Featherby, Court of Protection Deputy, Barcan+Kirby

Affordability is the starting point for every decision, notes Featherby. “A £2 million settlement today doesn’t stretch nearly as far as it did ten years ago,” she says. “When the goal is to support someone over their lifetime, the settlement must be managed so it remains sustainable far into the future.”

In practice, that means budgets must be monitored closely and reviewed often. Even small increases in care hours or therapy needs can have a significant long‑term impact, especially as inflation continues to rise across the care sector.

Effective wealth management in a more volatile world

From a wealth management perspective, Mark Inskip, Director and Wealth Manager, RBC Brewin Dolphin, sees firsthand how market behaviour has added another layer of complexity.

“The last five years have been very volatile for investments,” he explains. “You can have a great year followed by a challenging one. Managing expectations is a big part of our job now.”

For people who’ve never managed significant sums before – especially those adapting to life after a serious injury – this volatility can feel unsettling. Some may be overly cautious about spending, while others often underestimate how quickly costs accumulate over time.

For Featherby, much of the deputy’s work lies in helping families establish a balanced, sustainable position between these two extremes. This is where specialist financial planning becomes particularly valuable; advisers will use financial forecasting tools to model how a range of future scenarios might influence protected parties’ long-term financial stability. This gives families a clearer foundation for decision‑making and a better understanding of what is realistically achievable. “Cashflow forecasting is often the reassurance they need,” explains Inskip. “It shows what the future might look like, and where any pressure points are.”

This modelling will develop as the protected party’s circumstances change. Deputies provide updated information throughout the process, such as adjustments to care arrangements, planned purchases, health developments or unexpected expenses. This ensures the projections remain as accurate as possible. This more responsive, collaborative approach helps families feel supported in their decision‑making, even when the financial picture shifts over time.

By combining realistic budgeting, ongoing communication and specialist investment strategies, deputies and advisers can ensure that compensation awards support independence, wellbeing and dignity throughout a protected party’s life.

Understanding the human side of settlement management

Beyond the financial considerations, deputies and advisers often find themselves supporting families through a complex emotional landscape. The first year after settlement can involve unexpected pressures. “Families hope the trauma will ease once the money arrives and life will be simpler, but the reality can be more complicated,” says Featherby. “Instead, they may find themselves suddenly facing major decisions, responsibilities and uncertainty.”

For Featherby, the most effective response is to give protected parties and their families the space to understand their new reality. This requires time and regular communication. “I’ll sit across the kitchen table for as long as it takes,” she explains. “We go through budgets, priorities and what the next few years may look like. Some conversations are straightforward; many are more complex.

 “People often want everything resolved immediately,” adds Featherby. “But the processes we’re often dealing with can take time – and explaining that can be challenging.”

Inskip acknowledges this emotional dimension from a wealth management perspective. “Money brings out different emotions,” he explains. “People assume the worry ends with settlement, but in reality, it often just changes shape. Our job is partly education, partly reassurance.”

Selecting the right wealth manager

For many protected parties and their families, selecting a wealth manager is one of the most significant decisions they make after a settlement. While financial and strategic considerations may be involved, the decision is usually a more personal one.

Featherby is familiar with the ‘beauty parades’ in which protected parties meet with a range of potential advisers, and sees her role as a blend of advocacy and financial matchmaking.

“I’ve stopped wearing suits when meeting clients. We talk about anything other than investments for the first fifteen minutes. Once the relationship is there, the technical stuff follows.”

Mark Inskip, Director and Wealth Manager, RBC Brewin Dolphin

“It usually comes down to gut feeling on part of the protected party,” Featherby explains. “I choose who I invite based on what I know about my client – do they prefer someone older? Younger? Casual? Formal? It’s about finding personalities that fit, just like any relationship.”

This sensitivity is important. Trust and rapport matter just as much as technical skill – clients need to feel understood and at ease. To support this, Featherby will often offer advisers insight into communication preferences or sensitivities that may help build stronger connections. “It’s about giving advisers the context they need to connect in a way that feels respectful and reassuring,” she says.

Inskip echoes this personalised approach. “I’ve stopped wearing suits when meeting clients,” he explains. “We talk about anything other than investments for the first fifteen minutes. Once the relationship is there, the technical stuff follows.”

This emphasis on human connection reflects the broader reality of Court of Protection work. Protected parties and their families often face emotional overwhelm, and jargon-heavy conversations can create distance. Clear, empathetic communication is essential.

That’s where specialist teams bring real value, says Justina Best, Regional Strategic Partnerships Manager, RBC Brewin Dolphin. “You can’t simply adapt generalist advice to this world. You need people who understand deputies, injury‑related needs, and the emotional context they’re operating in,” she explains.

Ultimately, while financial strategies matter, successful long‑term partnerships are built on understanding, trust and authenticity. As Best puts it, “People remember how you made them feel long before they remember what you told them.”

Working together for long‑term stability

A successful outcome rests on a foundation of partnership between deputies and wealth managers. “Constant communication is essential,” says Featherby. “I update the wealth manager on care costs, income, big purchases – anything that affects affordability.”

Inskip agrees. “We often need to revisit cashflow models when unexpected expenses arise,” he says. “It’s about staying ahead so deputies can make informed decisions or justify them to the court.”

The protection landscape is shifting, with recent judgments increasing scrutiny over how deputies make decisions and who they can instruct. In Irwin Mitchell Trust Corporation v PW³, the Court held that professional deputies can’t use investment or asset management services linked to their own firm unless provided entirely free, reinforcing the need for transparent, conflict‑free relationships.

Similarly, in Lumb v NHS Humber⁴, the Court clarified that managing NHS Personal Health Budget direct payments falls outside a deputy’s standard authority, meaning separate NHS‑led arrangements are required. This has practical implications for deputies supporting clients with complex health‑funded care.

These rulings add to existing pressures, such as delays in court orders and rising care costs, at a time when lower interest rates mean settlements can no longer rely on cash returns alone and more funds must be invested – all within a system where families understandably want quick answers.

Despite these pressures, Featherby encourages her clients not to feel rushed. “Taking time and getting advice early helps ensure effective decision-making,” she explains. Ultimately, managing a compensation award is far more than financial planning. It’s a long‑term, collaborative relationship between deputies, advisers, families and a wider network of professionals – one built on clarity, trust and continual communication.

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¹https://www.weightmans.com/media-centre/news/the-inflation-factor-how-rising-care-costs-are-reshaping-injury-claims

²https://www.insurancebusinessmag.com/uk/news/breaking-news/sharp-rise-in-care-worker-pay-drives-higher-ppo-costs-for-uk-insurers-554133.aspx

³‘One plus one makes two’: Court of Protection finds conflict of interest within law firm structure

⁴Lumb v NHS Humber and North Yorkshire ICB & Anor [2024] EWCOP 57 (T2) – Court of Protection Hub

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