| SECTION 13 - TRANSITIONAL PROVISIONS
What are Transitional Provisions?
13.001 These provisions give protection to residents who
are, already in residential accommodation before the introduction of new rules in April
1993, who would be financially worse-off were the new rules to affect them immediately.
13.002 An assessment will be made to arrive at the
resident's "protected amount" ie the charge they will have to pay as a result of
protection under the Transitional Provisions.
Who benefits from Transitional Provisions?
13.003 In order to benefit a person must have been,
immediately before 12 April 1993, in or temporarily absent from accommodation provided by
a local authority under Part IV of the Social Work (Scotland) Act 1968 or Section 7 of the
Mental Health (Scotland) Act 1984 and either:
Schedule 1 paras 2 and 4(1)
a. receiving disregards on income under the old rules the
total of which was more than £1 higher than the total of income disregards under the new
rules; or
b. in possession of capital in excess of the £8,000 limit.
Schedule 1 para 4(2)
Who is not included in the Provisions?
13.004 The provisions do not apply to:
a. new residents placed in residential accommodation
between 1 April 1993 and 12 April 1993;
b. less dependent residents;
c. people in accommodation provided under Part IV of the
Social Work (Scotland) Act 1968 or Section 7 of the Mental Health (Scotland) Act 1984 who
are already paying the standard charge;
d. people who have capital of less than £8,000 and
who also have income of which less than £1 is being disregarded.
Schedule 1 para 5
Assessment of the Protected Amount
13.005 The Provisions will be phased over 3 years and will
involve making assessments under the new rules for each year.
1993/1994
13.006 For the residents listed at 13.003, assess the
amount that would have been paid had the "old" charging arrangements based on
Schedule 1 of the Supplementary Benefits Act 1976, but taking account of the new amounts
of Social Security benefits payable. Assess the amount liable to be paid under the new
rules. Charge as follows:
a. if the charge under the new rules is equal to or lower
than the charge under the old rules; then no protected amount applies and the resident
will be charged immediately under the new rules from 12 April 1993.
b. if the charge under the new rules is higher than the
charge under the old rules; then, for the first year, the resident will remain to be
charged under the old rules ie the charge under the old rules will be the person's protected
amount. This charge will be made immediately the new rules come into force.
Schedule 1 para 6
1994/95
13.007 In April 1994 an assessment under the new rules will
be made at the time of the DSS Income Support uprating and will be compared to the
protected amount that the resident has been paying since April 1993. Charge as follows
from the first full week following the date of the annual benefit rates uprating order:
a. if the charge under the new rules is equal to or lower
than the 1993 protected amount; transfer the resident on to the charge assessed under new
rules.
b. if the charge under the new rules is higher than the
1993 protected amount; increase the amount the resident pays by 33% of the difference
between the 1993 protected amount and the charge assessed under the new rules. This is the
protected amount for 1994.
Schedule 1 para 7(1)
eg. The resident has been liable for a charge of
£65.00 (his 1993 protected amount);
In April 1994 the assessment under the new rules shows him
able to pay a charge of £165.00.
His protected amount for 1994 (the charge he is liable to
pay) is £65.00 plus 33% of the difference between £165.00 and £65.00 ie 33% of
£100.00 = £33.00; so his protected amount for 1994 is £98.00.
1995/96
13.008 In April 1995 an assessment under the new rules will
be made at the time of the DSS Income Support uprating and will be compared to the
protected amount that the resident has been paying since April 1994. Charge as follows
from the first full week following the annual benefit rates uprating order:
a. if the charge under the new rules is equal to or lower
than the protected amount; transfer the resident on to charge assessed under the new
rules.
b. if the charge under the new rules is higher than the
1994 protected amount; increase the charge the resident pays by 33% of the difference
between the 1994 protected amount and the charge assessed under the new rules. This is the
protected amount for 1995.
Schedule 1 para 7(2)
eg The resident has been liable for a charge of
£98.00 (his 1994 protected amount);
In April 1995 the assessment under the new rules shows him
able to pay a charge of £248.00.
His protected amount for 1995 (the charge he is liable to
pay from April 1995) is £98.00 plus 33% of the difference between £248.00 and
£98.00 ie 33% of £150.00 = £49.50; so his protected amount for 1995 is £147.50.
1996/97
13.009 In April 1996 all residents will be liable to pay
the charge assessed under the new rules from the first full week following the annual
benefits uprating order; ie if income or capital considerations mean they are assessed as
being able to meet the standard charge (eg they have capital over £8,000) then they will
be liable to pay the full standard rate for the accommodation provided.
Schedule 1 para 7(3)
Change of circumstances
Increase in resources
13.010 If, once an annual protected amount has been
assessed, a person's income or capital increases, the change will not affect the protected
amount for that year, unless the increase is due to a payment from a third party
contributing towards fees (see 6.055 and 8.019). In these cases, the protected amount
should be reassessed as follows:
Schedule 1 para 8(1) and (3)
13.011 In the first full week following the first payment
under an agreement, assessments will have to be made under the old (pre April 1993) rules
and the new rules taking into account the new resource and any other resources acquired
since the last re-assessment.
1993/94
13.012 If the new resource is received during the 1993/94
year, reassess the amounts which would be liable to be paid under the old rules and under
the new rules and charge as follows:
a. if the re-assessed charge under the new rules is equal
to or lower than the re-assessed charge under the old rules no protected amount applies
and the resident should be charged immediately under the new rules.
b. if the re-assessed charge under the new rules is higher
than the re-assessed charge under the old rules, the resident will remain to be charged
under the old rules at the re-assessed amount. This re-assessed amount will be the
resident's new protected amount for 1993/94.
Schedule 1 para 8(3)(4)
1994/95
13.013 If the new resource is received following the
re-assessment under 13.007, further re-assessments will have to be made under the old (pre
April 1993) rules and under the new rules taking the new resource, and any other resource
acquired since the last re-assessment, into account and the resident charged as follows:
a. if the re-assessed charge under the new rules is equal
to or lower than the re-assessed charge under the old rules, transfer the resident to the
charge assessed under the new rules.
b. if the re-assessed charge under the new rules is higher
than the re-assessed charge under the old rules, charge the resident the amount assessed
under the old rules plus 33% of the difference between the two new assessments.
Schedule 1 para 8(5)
eg The resident has been liable for a charge of
£65; on 15/5/94 he receives, for the first time, a payment of £50 under an agreement
from a relative.
The re-assessment under the old rules results in him being
able to pay a charge of £115; the re-assessment under the new rules results in him being
able to pay a charge of £215.
His protected amount for the remainder of the 1994/95 year
is £115 plus 33% of the difference between £215 and £115 ie 33% of £100 = £33;
so his new protected amount for 1994/95 is £148.
1995/96
13.014 If the new resource is received following the
re-assessment under 13.008, further re-assessments will have to be made under the old (pre
April 1993) rules and under the new rules taking into account the new resource, and any
other resource acquired since the last re-assessment, and the resident charged as follows:
a. if the re-assessed charge under the new rules is equal
to or lower than the re-assessed charge under the old rules, transfer the resident to the
charge assessed under the new rules.
b. if the re-assessed charge under the new rules is higher
than the re-assessed charge under the old rules, charge the resident the amount assessed
under the old rules plus 66% of the difference between the two new assessments.
Schedule 1 para 8(6)
eg On 15/5/95 a resident receives, for the first
time, a payment of £50 under an agreement from a relative.
The re-assessment under the old rules results in him being
able to pay a charge of £115; the re-assessment under the new rules results in him being
able to pay a charge of £200.
His protected amount for the remainder of the 1995/96 year
is £115 plus 66% of the difference between £200 and £115 ie 66% of £85 =
£56.10; so his new protected amount for 1995/96 is £171.10.
13.015 The assessment under the new rules each April will
take into account any increases in income or capital, other than payments made by third
parties, over the preceding year; this assessment in turn will determine the new protected
amount.
Schedule 1 para 8(2)
Decrease in resource
13.016 Once a person has been assessed as having a
protected amount if, on any date:
a. because of a reduction in income or capital; or
b. as a result of the annual review of his protected amount
the difference between the protected amount and the charge
under the new rules is less than £1.00; or if the charge under the new rules would be
less than the protected amount, the Transitional Provisions would cease to apply from that
date.
Schedule 1 para 9
Change in accommodation
13.017 If the local authority arranges different
accommodation for someone who is paying a protected amount for his accommodation the
protected amount will remain the same as that being charged for the original accommodation
unless it falls to be re-determined for some other reason, for example an increase in
income which necessitates a re-assessment under para 13.010.
Schedule 1 para 10
Temporary absence
13.018 If a person is temporarily absent from accommodation
provided for him under the Social Work (Scotland) Act 1968 or Section 7 of the Mental
Health (Scotland) Act 1984 he will not lose the right to pay a protected amount.
13.019 If a person is temporarily absent from such
accommodation when the new rules come into effect then his protected sum will be assessed
from the first full week after his return to that accommodation.
13.020 A person is deemed as temporarily absent from such
accommodation for:
a. a period spent in hospital of 52 weeks or less; or
b. any other period of absence not exceeding 13 weeks.
Schedule 1 para 11 |
