23 March 1995

Dear Colleague

NATIONAL ASSISTANCE (SUMS FOR PERSONAL REQUIREMENTS) REGULATIONS 1995

Summary

1. This Circular -

(a) advises that the revised weekly personal expenses allowance (PEA) of £13.35 will apply from 10 April 1995 for people provided with accommodation in the Statutory or independent residential care sector, including nursing homes, under the Social Work (Scotland) Act 1968 or section 7 of the Mental Health (Scotland) Act 1984;

(b) advises of an increase in the therapeutic earnings limit to £44 per week for persons in receipt of Incapacity Benefit or Severe Disablement Allowance; and

(c) instructs authorities to make a manuscript amendment to SWSG guidance on charging for residential and nursing home care (SWSG13/92, as amended).

PERSONAL EXPENSES ALLOWANCE (PEA)

Background

2. The amount that local authorities allow for personal expenses in their charging assessment for people they have placed in residential or nursing home accommodation under the community care programme is prescribed in GB Regulations made under section 22(4) and (4A) of the National Assistance Act 1948. These provisions apply in Scotland by virtue of section 87(3) and (4) of the Social Work (Scotland) Act 1968, as amended.

3. The allowance is usually increased each April at the same time Social Security benefits are uprated. The amount allowed for personal expenses in the local authority charging assessment is the same as the amount awarded in the Income Support assessment for residents in residential accommodation who have preserved rights, and is the same for residents whether they are placed in a local authority or independent sector residential home or nursing home.

Revised PEA amount from 10 April 1995

4. The National Assistance (Sums for Personal Expenses) Regulations 1995 (SI 1995 443) prescribe that, with effect from 10 April 1995, the PEA shall be £13.35 per week. This figure applies to those in residential care homes or nursing homes receiving financial assistance from local authorities to meet their accommodation costs.

5. People who entered residential care homes or nursing homes before 1 April 1993 and who therefore have preserved rights to the higher levels of Income Support (instead of receiving local authority support) will receive the same amount of PEA from the Benefits Agency.

THERAPEUTIC EARNINGS LIMIT

6. Separate regulations have been made under the Social Security Act 1975 to increase to £44 from 10 April 1995 the amount of the net earnings from permitted work which can be received without loss of benefit by people in receipt of Incapacity Benefit (which replaces Sickness Benefit and Invalidity Benefit from April 1995) or Severe Disablement Allowance. This applies where work, of less than 16 hours per week, is undertaken under medical supervision as part of the person's treatment while in hospital or elsewhere on the advice of a doctor.

MANUSCRIPT AMENDMENT TO SWSG GUIDANCE ON CHARGING

7. In paragraph 13.008c. "1993" should read "1994". This amendment should be made in manuscript on the existing guidance page. A further package of amendments to the guidance will be issued shortly following recent amendments to the Income Support Regulations.

ACTION

8. The instructions and guidance in this Circular replace those in Circular SWSG3/94, which should be disregarded;

- authorities should implement the new rates of PEA and Therapeutic Earnings Limit from 10 April 1995; and

- authorities should make the required manuscript amendment to the guidance.

Copying the Regulations may be purchases from HMSO, 71 Lothian Road, Edinburgh.

Contact Point

9. Please direct any enquiries about this Circular to Mr Trevor Hall, Social Work Services Group, Room 44, James Craig Walk, Edinburgh EH1 3BA (telephone 0131 244 5455).

Yours faithfully

GAVIN ANDERSON