§ Mr. DrewTo ask the Deputy Prime Minister if he will make a statement on the definition of usual residency for those who have been placed by one social services department in the area of another department; and what funding implications there are if the former decides(a) to reduce and (b) to remove funding. [100539]
§ Jacqui SmithThere is no definition of "ordinarily resident" in the National Assistance Act 1948 and it should be given its ordinary and natural meaning subject to any interpretation by the courts. The concept of ordinary residence involves questions of fact and degree. In determining ordinary residence, factors such as time, intention and continuity—each of which may be given different weight according to the context—have to be taken into account. Local Authority Circular LAC(93)7 on "Ordinar Residence" gives full details.
Generally, if a council places an individual in a care home in the area of another council under section 21 of the National Assistance Act 1948, the first council has continuing responsibility to fund and care manage the individual's stay in residential care. This is because the individual is regarded as remaining ordinarily resident in the "placing" authority's area, by virtue of section 24(5) of the 1948 Act.
Residents who are placed in care homes by councils are financially supported when their income and assets are not sufficient to cover the cost of care home fees. The amounts that supported residents should contribute to these fees are governed by the National Assistance (Assessment of Resources) Regulations 1992. Once the resident's contribution has been determined, the council should make its contribution sufficient to meet the costs of care as set out in the resident's care plan and contract between the council and care home. If the care home's fees are higher than the council would normally expect to pay, third parties such as relatives may make up the difference.
Whether a supported resident is placed by a council in its own area, or the area of another council, the placing council would be acting outside its statutory duties if it attempted to reduce its contribution to care costs in situations where supported residents' income and assets and assessed needs remain unchanged. When the resident's financial situation or needs change, a council may legitimately reduce or remove its funding. For example, a supported resident who acquires extra income and assets during his stay in residential care may lose entitlement to council funding. A council may reduce its funding when, following a re-assessment of needs, it agrees with a resident that some aspect of care within the care home may be reduced. In such circumstances, the resident should continue to pay their assessed contribution and the council makes up the difference with regard to the lower care home fee.