18 August 1995

Chief Executive Regional/Islands Council

Copy to: Directors of Social Work

General Managers of Health Boards

Chief Executives District Councils

Directors of Housing

Appropriate Professional and

Voluntary Bodies

Dear Colleague

COMMUNITY CARE: NATIONAL ASSISTANCE (ASSESSMENT OF RESOURCES) AMENDMENT REGULATIONS 1995 - REGULATIONS AND GUIDANCE

Summary

1. This Circular encloses amendment regulations to the National Assistance (Assessment of Resources) Regulations 1992 which local authorities are required to apply to the financial assessment of adults placed in residential and nursing home accommodation, together with consequential amendments to the guidance on the regulations. The Circular also contains new advice which is not covered in the guidance. The amendment regulations came into effect on 13 April 1995.

Action

2. Local authorities should substitute the guidance amendments at the Annex to this Circular for the corresponding pages already in the guidance and should initial and date the Record of Amendments Sheet at the back of the guidance to indicate that they have been done. Authorities should also add the amendment regulation (attached to this circular) to the National Assistance (Assessment of Resources) Regulations 1992, and subsequent amendments, for ease of reference.

Amendments to 1992 Regulations

3. An amendment to the National Assistance (Assessment of Resources) Regulations 1992 has been made in order to maintain alignment with the Income Support rules. This takes account of the introduction of a new benefit - Incapacity Benefit - which replaces Invalidity Benefit and Sickness Benefit. References to Invalidity Benefit and Sickness Benefit have been replaced in the enclosed amendment to the guidance.

4. The other amendment to the Regulations has been made to clarify charging policy intention. This introduces a disregard of income for a temporary resident to meet housing costs where their previous home is up for sale and it is intended that the proceeds be used to purchase more suitable accommodation for the resident to live in. Details of this disregard are addressed at paragraph 3.012 of the amendment to the guidance.

Amendments to guidance only

Arrears of benefits

5. Current guidance on benefit arrears suggests that such payments should be treated as capital (and as a result the local authority cannot charge against them as they are instructed to ignore such payments for 52 weeks). A DSS Commissioner's Decision states that such payments are, in fact, income and can be taken into account immediately - for the period for which the benefits should have been paid. An amendment to paragraph 6.029 of the guidance has been made to bring it into line with the Commissioner's Decision.

Charges for non-residential services provided for people in residential care

6. Draft SWSG guidance on charging for adult non-residential sector care services, which issued in February 1995, gave advice on charges for this type of service provided to people in residential or nursing home accommodation. The final version will issue shortly. Paragraph 1.017A of the attached guidance now contains similar advice on this issue.

Capital limits for couples

7. Local authorities are reminded that they have no powers to assess couples jointly and that the £8,000 capital limit applies solely to the resident. Therefore, the resident must have in excess of £8,000 capital (or their share of jointly held capital must exceed £8,000) before being charged the full cost for their accommodation. See paragraph 4.003A of the amended guidance.

Housing Benefit, Council Tax Benefit and Income Support for Housing costs

8. An amendment to Housing Benefit (HB), Income Support (IS) and Council Tax Benefit (CTB) Regulations was introduced in April 1995. The changes limit, in certain circumstances, the length of the period for which HB, IS (for housing costs) and CTB can be paid in respect of an empty property, including the homes of people who enter residential accommodation, for a "trial period".

9. Previously people entering residential sector care for a "trial period" may have received benefit for housing costs for up to 52 weeks, if there was an intention to return to their own home and the period of absence was unlikely to exceed 52 weeks. The new DSS Regulations define a "trial period" as applying to people who enter residential accommodation initially on a temporary basis during which it is decided whether they need to stay in residential accommodation or can return home. Their stay in residential accommodation is generally a conditional one with a number of factors influencing whether or not they will return home or eventually stay permanently in residential accommodation.

10. The changes mean that any single householder in receipt of HB, IS for housing costs or CTB who enters residential accommodation purely on a trial basis will be able to receive these benefits for 13 weeks only, instead of up to 52 weeks whilst they are in the residential accommodation.

Example: A person is admitted into hospital and is therefore entitled to continue receiving Housing Benefit, Council Tax Benefit and Income Support for housing costs for up to 52 weeks. After 10 weeks in hospital he enters residential accommodation for a trial period. He can receive benefit under the trial period for up to a further 13 weeks.

11. The changes will not affect:

a. people receiving care in residential accommodation temporarily other than on a "trial" basis, eg for convalescence or respite care. This will also cover people who are receiving care in residential accommodation for a temporary period and intend to return to their own home;

b. married residents, or those with a partner, as their partners will be able to receive the benefits instead.

Local authorities should note how application of the new HB, CTB and IS Regulations will affect residents' ability to meet assessed charges for residential care, or the amount charged for periods of less than 8 weeks. If, during the course of the "trial period" it is decided that the circumstances are no longer that of a trial period (eg it has been decided that a resident will definitely return home at a future date), the local authority should advise the resident to notify the Housing Benefit office and/or the Benefits Agency of their change of circumstances. The Housing Benefit office or Benefits Agency may require verification from the social work department of this change in circumstances.

ENQUIRIES

12. Please direct any enquiries about this Circular or enclosures to Trevor Hall, Social Work Services Group, Room 426, 43 Jeffrey Street, Edinburgh, EH1 1DN, or telephone 0131 244 5455.

Yours faithfully

GAVIN ANDERSON