QUEEN'S BENCH DIVISION
ADMINISTRATIVE COURT
33 Bull Street Birmingham B4 6DS |
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B e f o r e :
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THE QUEEN on the application of KM (by her litigation friend RM) |
Claimant |
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- and |
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NORTHAMPTONSHIRE COUNTY COUNCIL |
Defendant |
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Bryan McGuire QC (instructed by Ellen Williamson, LGSS Law and Governance, Northamptonshire CC) for the Defendant
Hearing dates: 17th February 2015
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Crown Copyright ©
MR JUSTICE GILBART :
i) ESA (Income Based Employment Support Allowance) £ 72.40
ii) DLA (Disability Living Allowance) £ 54.45
iii) "Support Group" Premium £ 35.75
iv) Disability Income Guarantee £ 15.55
£178.15
Legal context
"17 Charges for local authority services in England and Wales.
(1) Subject to subsection (3) below, an authority providing a service to which this section applies may recover such charge (if any) for it as they consider reasonable.
(2) This section applies to services provided under the following enactments
(a) section 29 of the National Assistance Act 1948 .
(b) (f) ..
(3) If a person
(a) avails himself of a service to which this section applies, and
(b) satisfies the authority providing the service that his means are insufficient for it to be reasonably practicable for him to pay for the service the amount which he would otherwise be obliged to pay for it,
the authority shall not require him to pay more for it than it appears to them that it is reasonably practicable for him to pay."
"Local authorities shall, in the exercise of their social services functions, including the exercise of any discretion conferred by any relevant enactment, act under the general guidance of the Secretary of State."
"In my view Parliament by s.7(1) has required local authorities to follow the path charted by the Secretary of State's guidance, with liberty to deviate from it where the local authority judges on admissible grounds that there is good reason to do so, but without freedom to take a substantially different course."
28 "The next question was whether there were cogent reasons for departing from the guidance. There was and is no dispute about the relevant legal principles. Having considered R v Islington Borough Council ex parte Rixon (1998) 1 CCLR 119 and R (Munjaz) v Mersey Care NHS Trust [2006] 2AC 148, together with other authorities, Males J said (at paragraph 35):
"In summary, therefore, the guidance does not have the binding effect of secondary legislation and a local authority is free to depart from it, even 'substantially'. But a departure from the guidance would be unlawful unless there is cogent reason for it, and the greater the departure, the more compelling must that reason be. Conversely a minor departure from the letter of the guidance while remaining true to its spirit may well be easy to justify or may not even be regarded as a departure at all. The Court will scrutinise carefully the reason given by the authority for departing from the guidance. Freedom to depart is not necessarily limited to reasons resulting from 'local circumstances' , although if there are particular local circumstances which suggest that some aspect of the guidance ought not to apply, that may constitute a cogent reason for departure. However, except perhaps in the case of a minor departure, it is difficult to envisage circumstances in which mere disagreement with the guidance could amount to a cogent reason for departing from it."
On behalf of the Council, Mr Kelvin Rutledge QC accepts this summary of the legal principles."
Nature of dispute
i) the meaning of the Secretary of State's guidance;
ii) whether the NCC policy reflected it, and did so with clarity.
i) ESA (Income based Employment Support Allowance). This is paid by virtue of s 1(2) of the Welfare Reform Act 2007. The amount of £72.40 is prescribed by regulation 62 of the Employment and Support Allowance Regulations 2013/379 as amended by paragraph 12 of the Welfare Benefits Up-rating Order 2014/147;
ii) DLA (Disability Living Allowance) is paid under section 71 of the Social Security Contributions and Benefits Act 1992, and can consist of two parts, namely a care component and a mobility component;
iii) In the case of the support premium, this is paid under section 2(1)(b) of the Welfare Reform Act 2007 and is an additional sum (called a "support component" in the legislation) where a claimant is unable to work. The rate of £ 35.75 is set by Regulation 62(2)(b) of the Employment and Support Allowance Regulations 2013/379 as amended by Part 6 Article 23 of the Social Security Benefits Up-rating Order 2014/516 .
iv) In the case of the "Disability Income Guarantee" this is actually referred to in the legislation as an "Enhanced Disability Premium" payable at the rate of £ 15.55 per week see paragraph 15 of Schedule 2 of the Income Support (General) Regulations 1987 as amended by the Social Security Benefits Up-rating Order 2014/516. It is payable by virtue of Paragraph 13A of Schedule 2 of the Income Support (General) Regulations 1987 (as amended). It is to be noted that Paragraph 13 deals with a "Severe Disability Premium." Higher premiums are paid in that case for those who qualify (£ 61.10 as against £ 15.55).
i) the total income of the claimant is assessed (say A);
ii) account is taken of necessary expenditure incurred by a Claimant on dealing with their disability (say E);
iii) an element within that income is regarded as a minimum. That minimum (P) is then boosted by 25% to give a protected figure (say P (1.25)) ;
iv) the contribution (say (C)) must not exceed the headroom (H) between the top of the protected figure and the amount representing the assessed income less expenses.
C ≤ H, where H = ((A - E) P (1.25)).
a) Exclusion from all parts:
H = ((£140 - £20) (£40(1.25)) = (£120) - (£50) = £70
b) Inclusion in total and in P:
H = (£140 - ((£40+£20)(1.25)) = (£140) - (£75) = £65.
"I Introduction.
(5) Where they do decide to charge for services, councils also retain substantial discretion in the design of charging policy. This guidance sets out a broad framework to help councils ensure that they their charging policies are designed to be fair and to operate consistently with their overall social care objectives. The guidance provides clear objectives which all councils operating charging policies should aim to achieve. The Government's view is that these are minimum requirements to ensure that charges are reasonable in terms of the HASSASSA Act 1983. In considering what are reasonable charges in their local circumstances, some councils may need to go beyond the minimum requirements in this guidance. Nothing in this guidance requires councils to make existing charging policies, which go beyond the requirements set out here, less generous to users than they are currently.
(17) as a minimum, users incomes should not be reduced by charges (to) below "basic" levels of Income Support, as defined in this guidance .plus a buffer of not less than 25%. The 25% buffer is added to each user's Income Support Allowances and premiums according to age, level of disability and family status . The buffer provides an additional safeguard to prevent users' independence of living from being undermined by charging policies.
(18) It is inconsistent with promoting independent living to assume that all of user's income above basic levels of Income Support is available to be taken in charges
(20) As a minimum, "basic " levels of Income Support .plus 25% should be taken to include the personal allowances and any premium or additional amount appropriate to the user, according to age, level of disability and family status, but need not include the Severe Disability Premium (SDP) or an amount for severe disability
(23) Income should be assessed net of any Income Tax and NI contributions payable and net of housing costs and Council Tax;
(24) For users who receive other income in addition to .. ESA .., taking them above the basic levels (usually disability-related benefits such as Attendance Allowance (AA), Disability Living Allowance (DLA) or Personal Independence Payments (PIPs) , but also including .. the support component of ESA for Income Support .councils may choose; either to exempt such users from charges regardless of their additional income, or to include the user's overall income within a charge assessment. Where councils choose the latter, the aim should be to ensure that any charge levied does not reduce the user's net income below basic levels of Income Support plus 25%."
"VI. Treatment of Disability Related Benefits.
(32) As set out in Section 73(14) of the Social Security Contributions Benefits Act 1992 . The mobility component of Disability Capital Living Allowance (DLA) is excluded by law from being taken into account for charges. The mobility component of Personal Independence Payments (PIPs) should also be disregarded. Councils should disregard the War Pensioner's Mobility Supplement in assessing income, as this should be treated as analogous to DLA/PIP mobility component.
(33) ..
(34) Disability-Related benefits at issue in this section are the Severe Disability Premium (SDP) of Income Support Attendance Allowance (AA), DLA, PIP, Constant Attendance Allowance (CAA), and Exceptionally Severe Disablement Allowance (ESDA).
(35) These benefits may be taken into account as part of a user's income although it is open to councils not to do this. Where these benefits are taken into account, councils should be guided by the overriding principles that charges:
- Do not reduce the user's net income below basic levels of Income Support, plus 25%; and
- Do not result in the user being left without the means to pay for any other necessary care or support or for other costs arising from their disability.
(36) This aim is best achieved through charge assessments, which assess both the resources and expenditure of the user. Expenditure should include any Disability-Related expenditure. Councils are expected to assess and allow for Disability-Related expenditure specifically for all users whose Disability- Related benefits are taken into account as income. Councils should also consider and specifically consult users on any need to do this for other users, who may have Disability-Related expenditure.
(37) Some councils may choose to disregard a standard element of disability benefits for all users receiving these. In these cases any assessment of resources and expenditure should include an assessment of whether the individual users Disability-Related expenditure exceeds the level of the disregard."
"2. Policy Statement
2.1 This policy should be read in conjunction with the NCC Personalisation policy and guidance national guidance published by the Department of Health; Fairer Charging Policies for Home Care and other non-residential Social Services, June 2013 (the relevant policy of the Secretary of State) and Fairer Contributions Guidance 2010: Calculating an individual's contribution to their personal budget. Nov 2010.
2.2 Northamptonshire County Council's Adult Care Services directorate has got the discretionary power to charge for certain types of social care provisions. This policy is based on the principles of Fairer Charging as set out by Government and will remain in place until such time as the Department of Health issues further guidance on Self Directed Support and Charging, at which point this policy will be reviewed and amended to reflect National guidance.
2.3 The level of the contribution that individuals will be asked to make towards their care will be calculated by means of a single financial assessment, which is initiated at the point of an assessment of needs. The amount to contribute will be the assessed contribution or the value of the care provided, whichever is lower.
2.4 The overarching principle of this policy will be the need to promote independence while ensuring that people are safe and that risks are managed effectively.
5. Principles of the Policy.
5.1 Fairness: The policy will be applied consistently to all adults receiving services, regardless of how they are getting those services, so that everyone is treated fairly and equitably. For those who are not eligible for services we will offer sign posting and advice and information.
5.2 Ability to Pay: Everyone will be asked to contribute towards the cost of their social care based on their ability to pay (their personal means) rather than on the cost of their services alone. In support of this principle, everyone will be offered a comprehensive financial assessment of their individual circumstances and be left with a basic level of protected income, as set out in Government guidance.
5.3 Affordability: No one will be asked to contribute more than is reasonable. Depending on their situation, some people will not have to contribute anything.
5.4 Maximising Benefits Entitlement: To ensure everyone is receiving all the welfare benefits to which they are entitled and are not missing out, everyone will be offered a welfare benefits check as part of their financial assessment.
5.5 Transparency and Clarity: The policy will be set out in a clear and straight forward way so that everyone can understand how their contributions (if any) have been calculated, will know what their contributions might be at an early stage, and be able to judge whether or not the policy has been applied correctly in their individual case.
5.6 Empowerment: The policy supports the overarching goal of the council to support people to have more choice in control over their resources and the way these are utilised, so that they are able to live their lives the way they want and feel included in their community.
5.7 Proportionality: The charges will be based on the actual cost of the service to the council and you will only be asked to contribute towards the value of your own care.
5.8 Compliance with Statutory Duties: The policy will be developed and applied in a way that is fully consistence with legislation and the requirements set out in guidance on fairer contributions.
6.3 Protected Income;
6.3.1 The financial assessment will calculate a contribution based upon an individual's maximum chargeable income. In all cases a "buffer" of Income Support/Pension Guaranteed Credit plus 25% and any other Disability-Related costs will be maintained and will not be included within the maximum disposable income figure.
6.3.2 The "buffer" amount is in place to ensure a level of financial protection, independence and well being following the deduction of any contributions.
6.5 Disability Related Expenditure (DRE)
6.5.1 The current Department of Health Guidelines on Charging for Non-Residential Services, specify that if we take into account someone's disability benefits when calculating contributions, we need to take a proportionate allowance for reasonable expenses that the person incurs as a result of their disability, in order to allow them to maintain independence and dignity.
6.5.2 If someone receives either Attendance Allowance, Personal Independence Payment or Disability Living Allowance Care Component, they will be offered an assessment of their Disability-Related expenses so that disregards can be applied in relation to certain items as per national guidance and regulations.
6.8 Calculating the Level of Contribution
6.8.1 An individual's level of contribution will be calculated using the service user's income and capital to calculate their maximum chargeable income. The calculation will consider:
- The amount of weekly assessable income, minus
- The weekly allowance/disregards
= maximum chargeable income
Example:
Someone aged over 60 has a total accessible income of £260 per week but has capital below £23,250
Allowable costs of £19.23 per week (due to disability expenses)
Personal allowance for accessible purposes of £155.06 per week (basic income support plus 25%)
Example calculation:
Total accessible income £260
- Allowable costs £19.23
= A NET DISPOSABLE INCOME £240.77
- Less Personal Allowance £155.06
= Maximum weekly chargeable income £85.71
..
7. Monitoring, Reviews, Reassessment
7,1 A financial reassessment will be completed by the Financial Assessment Team under the following circumstances:
- Yearly, as part of an ongoing re-assessment schedule.
- At the request of the customer, if any of their circumstances have changed.
- When all welfare benefits claimed during the original assessment are in payment and notification has been received.
- If the capital is reduced to threshold level.
- If an error or omission has occurred in the original assessment (as per 6.9.3)"
(in fact there is no paragraph 6.9.3 in the document).
i) Basic level ESA £72.40
ii) Support Group Premium £35.75
iii) Disability Income Guarantee £15.55
i) (Paragraph 6.7.1) assess the total income of an individual from all sources
ii) (Paragraph 6.8) calculate a contribution from the individual on the following basis
a) "the amount of weekly assessable income, minus
b) The weekly allowance/disregards
= maximum chargeable income."
i) the policy does not specify how the " personal allowance" is calculated before the 25% uplift;
ii) it is clear from paragraph 20 of the Guidance that "any premium or additional amount appropriate to the user according to age, level of disability and family status" is to be included, but if it is SDP need not be included (but may be), or an amount for " severe disability."
iii) the support group premium must therefore be included;
iv) on the same basis, the Enhanced Disability Premium ("EDP") is to be included. It is not included in the list excluded in paragraph 24.
i) ESA Income
a) "Personal allowance" £72.40
b) Support Group £35.75
c) EDP £15.55
ii) DLA Middle rate care £ 54.45
i) £ 72.40 (Income support personal allowance for an over 25 year old)
ii) £ 31.85 Income Support Single Person's Disability premium (note that this is not the figure identified in the Regulations, nor is it the actual figure paid)
iii) 25% uplift on the total (£ 104.25)
i) the Claimant says that the premium should be taken as the actual figure of £35.75, whereas the Defendant takes £ 31.75, which it says is the Income Support Persons Disability Premium.
ii) How one treats the EDP/ Disability Income Guarantee of £ 15.55.
i) one should read the NCC policy alongside the national policy. I accept that, but it cannot help if there is an inconsistency between the two;
ii) a challenge could be made by an application under section 17 HASSASSA and paragraph 7.1 of the NCC policy. But that cannot address the lacuna which currently exists in the NCC policy, or the apparent conflict with national guidance.. Indeed, as Mr Auburn pointed out, the parameters of paragraph 7.1 would not include an appeal made on the basis that NCC was not treating a type of payment as falling within a personal allowance;
iii) the Claimant had accepted that the EDP should not be included. As Mr McGuire QC accepted, this argument of his was based on a misunderstanding by NCC of the Claimant's case.