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England and Wales High Court (Administrative Court) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Administrative Court) Decisions >> C, R (on the application of) v North Tyneside Council [2012] EWHC 2222 (Admin) (01 August 2012) URL: http://www.bailii.org/ew/cases/EWHC/Admin/2012/2222.html Cite as: [2012] EWHC 2222 (Admin) |
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QUEEN'S BENCH DIVISION
ADMINISTRATIVE COURT IN LEEDS
1 Oxford Row, Leeds, LS1 3BG |
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B e f o r e :
____________________
THE QUEEN (on the application of C) |
Claimant |
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- and - |
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NORTH TYNESIDE COUNCIL |
Defendant |
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Paul Spencer (instructed by Vivienne Geary, Head of Legal Governance and Commercial Services, North Tyneside Council) for the Defendant
Hearing date: 18 July 2012
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Crown Copyright ©
Mr Justice Hickinbottom:
Introduction
The Legal Background
"(1) Subject to sub-section (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…
(a) section 29 of the National Assistance Act 1948
….
(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 …."
In short, an authority has a power to levy a charge for services it provides, so long as the service user has means to pay and the charge is reasonable.
"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".
This provision is in mandatory terms: an authority is required to comply with guidance issued by the Secretary of State in exercising powers under any relevant enactment. For the purposes of section 7(1), the 1983 Act is a "relevant enactment".
i) The guidance stresses the overall objectives of social care "to promote the independence and social inclusion of service users" and the need to ensure that they are "not undermined by poorly designed charging policies" (paragraph 3); and the need to "[take] a holistic view of the user's finances and personal needs, both to support the user's own independence of living and to ensure that any charge assessed is reasonable" (paragraph 45).ii) The exclusive focus of the assessment exercise is on the financial position of the individual community care service user. Paragraph 62 says:
"Section 17 of [the 1983 Act] envisages that councils will have regard only to an individual user's means in assessing ability to pay a charge."Of course, (i) if informal carers such as parents spend money on behalf of the user, then that can be treated as expenditure of the user himself or herself (see paragraph 84); (ii) in making an assessment in respect of services to carers under the Carers and Disabled Children Act 2000, the position may be different – in that assessment the financial position of the carers may be relevant (paragraphs 81-5); and partners are subject to different rules and considerations, which are not relevant to this claim. But otherwise, in assessing any charge for services to a community service user under section 17 of the 1983 Act, the financial position of informal carers is irrelevant.iii) In respect of housing costs, paragraph 21 of the guidance states:
"Income should be assessed net of any Income Tax and National Insurance contributions payable and net of housing costs, Council Tax. Housing costs and Council Tax should be assessed net of any Housing Benefit or Council Tax Benefit payable…. Some councils will wish to consider taking account of other costs such as water rates or charges and home insurance."I shall return to that guidance when I consider the grounds of challenge (see paragraphs 26 and following below).iv) Paragraph 50 states:
"Evidence of actual expenditure may be requested, at the council's discretion. Where receipts have been kept, a council may request that this is done for future expenditure. It is legitimate for councils to verify that items claimed have actually been purchased, particularly for unusual items or heavy expenditure."That emphasises the need for expenditure, to be included as a disregard against income, to be actual and not merely notional.v) Paragraph 20 provides that the charge assessment will need to ensure that:
"… any charges levied on users… will not reduce the user's income below basic levels of Income Support… plus 25%"The relevant basic level of Income Support (now Employment and Support Allowance, "ESA") is referred to as "the applicable amount", and the additional 25% of the applicable amount as "the buffer". The purpose of the buffer is that it "provides an additional safeguard to prevent users' independence of living from being undermined by charging policies" (paragraph 15).
i) Individuals will not pay more than they can reasonably afford to pay, following a Fairer Charging Assessment in line with the 2003 Guidance.ii) The required contribution will take account of any additional costs that an individual faces as a result of his disability, through undertaking an individual disability disregard assessment.
iii) Charges will not be made that would reduce an individual's income below the basic level of ESA plus a 25% the buffer.
i) The individual's capital is assessed. However, in C's case, her capital is irrelevant, as it is too low to trigger any possible contribution.ii) The individual's income is assessed, on the basis of details produced by the individual at the time of the financial assessment calculation. Income includes all money received on a regular basis, including benefits.
iii) Against that income, there are various allowances or disregards, including :
a) in all cases, an amount in the sum of the applicable amount plus buffer, which is intended to cover "ordinary living expenses";b) housing costs and council tax;c) in appropriate cases, mobility allowance in full, and a proportion of various other allowances (e.g. attendance allowance); andd) Disability Related Expenditures, i.e. additional costs identified to be related to disability, following a Disability Disregard Assessment ("DREs").iv) If there is income remaining after deducting those disregards, that sum is available to make a contribution towards the costs of the service charges. If the available sum is more than those costs, the amount of the costs is levied. If less, then the whole of that sum is taken. It is a principle of the Council's own guidance that each individual who is assessed as being able to contribute towards the cost of their care package must pay their assessed contribution.
"The overall aim should be to allow for reasonable expenditure needed for independent living by the disabled person. Items where the user has little or no choice other than to incur the expenditure, in order to maintain independence of life, should normally be allowed."
Item | Weekly Allowance | Notes |
Mortgage/Rent | Actual amount | Actual amount less any Income Support/Pension Credit for mortgage or Housing Benefits for rent |
Council Tax | Actual amount | Actual amount less Council Tax Benefit, exemptions, disregards, etc |
Of course, it is possible that additional housing costs may be incurred as a result of an individual's disability, which may necessitate particular accommodation requirements. However, the disregard identified is not restricted to such additional costs: where a service user is liable for mortgage, rent and/or council tax payments, in the calculation of income available for the purposes of charging for community care services, then the amount of such payments (net of housing benefit and council tax benefit payments received) is allowable as a disregard against total income. That is confirmed in the statement of Ms Sandra Lillford (the Council's Manager of Financial Services in Adult Social Care) dated 23 July 2012, at paragraph 21; and is in line with paragraph 21 of the 2003 guidance (quoted at paragraph 8(iii) above). Those allowances are made, not because they are additional costs incurred as a result of the service user's disability, but because in principle allowances are made for basic living costs and, whilst ESA rates (for which a specific allowance of made) generally cover ordinary living expenses, they do not cover housing costs such as mortgage payments, rent and council tax. I shall return to these allowances, which are at the heart of this claim (see paragraphs 26 and following below).
The Factual Background
"We consider this to be a reasonable contribution to the costs of running the house, bearing in mind our financial situation and that of [C]…. [W]e do not consider it is right that we have to absorb all of [C's] housing costs simply because she is disabled. If she were not disabled we would certainly be charging her for board and lodging. We think that it is important that she makes a contribution".
Grounds of Challenge
The Broad Ground
"[Paragraph 21 of the 2003] guidance explains that income should be assessed as net of housing costs less any housing benefit or council tax benefit. It adds that councils might wish to consider other costs such as home insurance and water charges. Thus even in a fairly straightforward case of a home owner without a mortgage, variations can exist between authorities.
The [2003] guidance [is] silent on the position of housing costs where service users are living with their families. Most often this is where disabled adults live with their parents, or older people with adult children. Practice appears to vary as to whether any housing costs are allowed for either a contribution towards council tax or rent. If the family are charging for housing costs it would be unreasonable for a local authority not to allow these, given that housing costs are always considered to be a priority in any debt situation. On the basis that charges should be designed so that they do not undermine the independence and social inclusion of service users, it is arguable the amount allowed for rent and other housing costs in such cases should be set at a level based on what the person would pay for equivalent accommodation on a shared basis if it did not happen to be owned or rented by the person's family, and his or her proportion of the Council Tax.
Clearly there is no duty on families to provide support in such cases – the 'liable family' rule (which required families to support disabled adult members) was abolished by the National Assistance Act 1948 s1. Even if the family does not charge a specific rent it is arguable that at the very least local authorities should consider making an allowance based on the non-dependent deduction for housing and council tax benefit, in recognition of the fact that adults are expected to contribute towards their housing costs. As a general principle, local authorities should not rely on relatives (who are often the carers) to subsidise service users further, by not leaving the user enough money to make a contribution to household expenses."
The Narrow Ground
"Miss G is a young lady who lives with her parents in a privately owned house where the mortgage liability is in the names of her mother, father and herself jointly.
Miss G's liability towards mortgage payments is £15.66 per week. She also has a liability towards building and maintenance insurance of £7.27 per week. These are both allowed as additional housing costs. Miss G's contribution towards her services has been assessed as nil".
That is an example of where the service user herself has direct obligations to external parties for mortgage payments etc, which the Council allow against income for the purposes of the calculation of charges. In this claim, of course, there is no evidence that C has any such direct liabilities: indeed, the evidence is that she has none.
"Mr C is a 43 year old single man who lives with his brother in Council rented accommodation. The tenancy is in the name of his brother. He has a learning disability and limited mobility.
His brother is in receipt of full benefit for housing and council tax purposes.
Mr C's brother has a non-dependent deduction of £21.06 from his housing benefit in respect of his brother. An additional allowance therefore of this amount is agreed in Mr C's financial assessment towards his contribution for household costs…." (emphasis added).
Conclusion
Costs