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Supporting People - Supporting Independent Living: Folder 2 - Part 3: Operational Guidance and Part 4: Financial Guidance

2 Charging Tasks and Activities

2.1 Objectives

2.1.1 The purpose of this guidance is to set out the tasks and activities, which need to be undertaken and the milestones to be achieved in order to maintain the same level of charges, uprated for inflation, at the point when Supporting People is introduced. This includes determining Supporting People payments and notifying service users when Transitional Housing Benefit Scheme is terminated.

2.2 Overview

2.2.1 This document describes the various activities that Supporting People Teams teams and other partners will need to carry out to successfully complete the transition, and covers the period up to November 2003. This guidance will help local authorities and their partners to plan and execute the various tasks involved in calculating the value of interim contracts.

2.2.2 Information on charges that will be deducted from the Supporting People grant values will be derived from THB data. Where a service is receiving grant from other eligible funding streams these funds must be captured using the approach set out in 'From SP3 to Contracts'. It is assumed that no charging income is available from these funding streams (transitionally at least) and hence the grant value at April 2003 will have potentially two elements:

• an element resulting from the operation of the formula (see From SP3 to Contracts) and paid in monthly instalments.
• an element relating to an assumed level of charges from self funders which is deducted from the first element.

2.2.3 The focus of this guidance, therefore, is to consider how to deal with the THB element. Information about what supported clients currently pay for services which it is intended should be non-chargeable under Scottish Executive guidance will also be captured. The capture of information regarding exempt services, as detailed in Charging and Financial Assessment guidance (Folder 1, Part 1, Section 9) is required to establish the correct level of funding transfer into the Supporting People Pot. Even if a local authority decides not to implement any charging at all, an exercise of this type must be put in hand, to capture the level of current income which will be foregone.

2.2.4 Calculating Grant Values. Charges pre-April 2003 are currently collected by service providers and landlords. From April 2003 this responsibility will transfer to local authorities. To enable this to take place, service providers and landlords will require to pass information on individual charges to the Supporting People team.

2.2.5 THB spreadsheets will provide charging information where service users are currently on full and partial THB.

2.2.6 Information from providers will be required to ascertain charging for service users who are not eligible for THB. For the purposes of establishing the grant value for each service the information required is the number of service users in the service (see paragraph 2.8.2). However, as local authorities will be responsible for collecting the charges from service users from April 2003, providers must pass detailed information on charges for self funders to local authorities by January 2003. This information will be required to raise charges from April 2003. This information will need to be collected again in April 2003 for reconciliation purposes. Together, these two sources of information will provide local authorities with a complete picture of charging for each service.

Example of a Self Funders Spreadsheet (to be completed by the service provider)

• Notification. It is essential to keep service users and service providers informed about charging arrangements at all times.

2.3 Calculating Charging Income

2.3.1 The following processes must be undertaken by local authorities:

• Extract THB claimant data in October 2002 and March 2003.
• Use October 2002 THB claimant data, as updated, to identify the assumed level of charges for the Grant Claim return.
• Validate actual client occupancy with service providers and obtain details of self payers to allow the collection of charges by the local authority from April 2003.
• Remove THB payments from Housing Benefit awards.
• Update the assumed level of charges using March 2003 THB claimant data.

2.3.2 All of the above processes are detailed within the remainder of this section. However, particular emphasis has been placed on the process undertaken by local Supporting People Teams to calculate the assumed level of charges. This information is key in the calculation of the grant value and to enable local authorities to raise charges.

2.4 Submit Housing Benefit Claimant Data Extract to Supporting People Teams

2.4.1 Information supplied by local Housing Benefit departments on current recipients of THB as set out in DWP Circular A15/2002 is the starting point for calculating the assumed level of charges under Supporting People.

2.4.2 Agreeing the THB element of individual client Housing Benefit awards began in April 2000. Service providers were instructed to disaggregate eligible support costs (the THB element) from eligible rent, where rent and support costs were previously combined. Subsequently, Housing Benefit departments have approved and recorded eligible support costs at a claimant level. Supporting People Teams will need to work with Housing Benefit departments to obtain this and the other claimant-level information as set out in DWP Circular A15/2002.

2.4.3 The THB Claimant Data Extracts should have been passed to Supporting People teams from Housing Benefit departments between 1st and 15 ^th October 2002. This information will be required again on 30th March 2003 (to be submitted by June 2003). This data will provide Supporting People teams with a snapshot of the THB caseload at these times.

2.5 Transfer THB Claimant Data Extract to the Service User Financial Schedule

2.5.1 Upon receipt of the October 2002 THB claimant data extract, Supporting People Teams need to load the data into a software application/database tool (for example Excel or Access). In addition to the information received from Housing Benefit Departments Supporting People teams will need to add information received from providers about self funders. The final document is called a Service User Financial Schedule and should be updated regularly.

2.6 Match Service Users against the Mapping Supply Database Record ID from the THB Service Level Spreadsheet

2.6.1 The THB Service Level Spreadsheet (which was created in each local authority by virtue of DWP Circular A47/2001, and should not be confused with the HB Claimant Data Extract) links addresses with levels of determined housing support services to a Record ID. Work should already be in hand to assign a Record ID against each row within the THB Service Level Spreadsheet - see 'From SP3 to Contracts' for further details.

2.6.2 Service users' payments and charges must be calculated for Supporting People grant and charging purposes. To do this, it is necessary to match all the people identified in the THB Claimant Data Extract, against their service on the THB Service Level Spreadsheet. This information is required for all service users (including those living in exempt services). Every service user should be attributable to a service on the THB Service Level Spreadsheet.

2.6.3 The relationship between a service user and their service can only be established by matching a service address from the THB Service Level Spreadsheet against a claimant address from the THB Claimant Data Extract. For example, one method would be to match the service postcode from the THB Service Level Spreadsheet against the postcode field in the THB claimant data (assuming the THB Claimant Data Extract has been stored in a computer database). The full address details of any record matches can then be checked before allocating the Record ID against the claimant record. See diagram below:

2.7 Apply policy for Scottish Executive and locally exempt services

2.7.1 Where a decision is made locally not to charge for a specific service, and where it is not exempt under Scottish Executive policy, it should be recorded as a chargeable service. It is then the local authority's responsibility to identify and meet the shortfall for the service costs from local resources. This amount will not be met by Supporting People grant. The Scottish Executive require all THB information to be recorded irrespective of whether it is a chargeable or exempt service (even if it is a short term service).

2.8 Calculate the assumed level of charges

2.8.1 Services detailed in interim contracts may be chargeable or exempt from charging. Where they are exempt from charging this may be because of Scottish Executive guidance or local charging policies, as set out in Folder 1, Part 1, Section 9. The Contract Value Schedule, within the SP3 forms in the Mapping Supply Database, contains an option box which enables local authorities to identify if the service is exempt. In either event the process for entering information into the Mapping Supply Database remains the same.

• The income from charges field within the Contract Value Schedule of the Mapping Supply Database should be completed with the data from completing the calculation set out at 2.8.2 for each service.
• The Mapping Supply Database will then process the charging information, deducting it from the contract value to arrive at the grant value for the service.
• If charges are not being levied because of a local charging policy, the Mapping Supply Database will deduct chargingincome in the grant calculation. Since it is the local authority that has made the service exempt from charging, the Scottish Executive will continue to count the income as if it were still being collected.

2.8.2 The process involves capturing charging information related to the people who receive no housing benefit:

1. Identify the number of people on Transitional Housing Benefit in the service by matching the claimant data from the A15 Spreadsheet as updated.

2. Add to (1) the number of spaces wholly funded from another source (e.g. Social Work funded spaces) in the service.

3. Deduct the figure arrived at at (2) from the current total number of people living in the service. To do this information is required from the provider.

4. These are self funders, so multiply the number of these self funders by the determined THB value from the THB Service Level Spreadsheet. Where there are different levels of service identified on the THB Service Level Spreadsheet, for the purpose of this calculation the local authority should take the highest determined value. Where this is not representative of the true value of the service to self payers, this will be addressed through the reconciliation process in November 2003.

5. The Mapping Supply Database will multiply the figure arrived at at (4) by the number of weeks for which THB is paid and this amount will be deducted from the contract value to arrive at the grant value for the service.

2.8.3 The Pricing Reconciliation Worksheet has been revised and now includes Section 6 for the automatic processing of this calculation as follows:

If however, you are using the original Pricing Reconciliation Worksheet then this calculation should be recorded somewhere, for example on the back of the printed copy.

2.8.4 The figure at 6g should be entered into the Mapping Supply Database.

2.9 Other Activities

2.9.1 Calculate Revised Housing Benefit Awards. Housing Benefit departments will remove THB from Housing Benefit awards and make this change effective from 1 ^st April 2003. DWP provide instructions to HB sections on this.

2.9.2 Validate Claimant Occupancy with Provider Data. This exercise is principally for the purposes of notification, to identify claimants who since the first THB Claimant Data Extract, have moved or are deceased. We have outlined above the need for providers to notify the Supporting People team of any changes of tenants. Supporting People teams should use the data provided by service providers to update the Service User Financial Schedule.

2.10 Reconcile Supporting People Grant Using March Housing Benefit Data (Calculate changes since October extract)

2.10.1 This activity will take place by Supporting People Teams using the second Housing Benefit extract of March 30 ^th 2003 and provider data. Details of claimants who have had a Housing Benefit award with an effective date after first THB Claimant Data extract must be identified, as these will be clients who had a change of circumstances, a delayed application, or are new to a Supporting People service. Equally changes to levels of eligible THB must be captured.

2.10.2 Guidance on monitoring changes of circumstances between the December 2002 return to the Scottish Executive and the final reconciliation are being considered in more detail (see Folder 2, Part 4, Section 1).

2.11 Notification

2.11.1 It is the responsibility of Supporting People teams to provide general information to service users on all relevant aspects which will affect them in the lead-up to the Supporting People programme. This may include information on the following:

• New arrangements for supported housing under Supporting People.
• The termination of THB.
• Supporting People passporting, charging and financial assessment. Local charging policy and exempt services.
• How to apply for financial assistance from Supporting People.
• Rights and responsibilities under the new arrangements.

2.11.2 In addition, Supporting People teams must provide similar information for service providers. This may include the following:

• Classifications of exempt services set out in Scottish Executive guidance.
• Any other exempt services which have been decided locally.
• How charges may be collected by the local authority and any proposed options for provider involvement.

2.11.3 Supporting People teams may wish to make use of the shell leaflets which have been provided on the Scottish Executive web site at www.scotland.gov.uk/housing/supportingpeople

2.11.4 Notify Claimants of Changes. This activity refers to local Housing Benefit departments notifying claimants of their re-calculated Housing Benefit awards following the removal of THB. Housing Benefit departments will inform claimants of their new Housing Benefit award, and if they drop out of Housing Benefit, may be liable for a support charge in the future.

2.11.5 At the same time as the Housing Benefit notification takes place, Supporting People teams will have to notify service users of their Supporting People status. This is to give service users as much advance notification as possible before Supporting People day. However, it is important to mention that this status may change if the service users' circumstances change between the date of notification and 30 ^th March 2003. Service users should be informed generally of their rights and responsibilities under the new arrangements (for example to inform appropriate bodies of changes in circumstances).

2.11.6 Service users receiving a previously chargeable service, which becomes exempt under Supporting People, must be notified that they no longer need to contribute towards the cost of support.

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