SUMMARY/PURPOSE

1. The lead authorities administering the implementation of Supporting People are required to implement a locally agreed charging policy applicable from 1^st April 2003.

2. This report has attaches the draft Supporting People Charging Policy from the Supporting People Commissioning Body.

3. The Supporting People Charging Policy must be developed alongside the Isle Of Wight Council’s Fairer Charging Policy for Home Care Services which is still in the developmental stage.

4. The Executive is being requested to approve the draft Supporting People Charging Policy, for submission to the Office of the Deputy Prime Minister.

5. The decision does not appear on the forward plan. The item was due to be discussed by the Social Services, Housing and Benefits Select Committee at their November meeting. However, in view of the corporate importance and tight deadlines, it was considered that it would be more appropriate for the report to go direct to the Executive. It is not a key decision and can be taken on this agenda without using the formal urgency provisions. The decision cannot wait until the publication of the next forward plan as the deadline for submission of the draft policy to the ODPM is 12 December.

BACKGROUND

6. Supporting People is a new integrated policy and funding framework for providing housing related support services for vulnerable people.

7. The Supporting People Programme is increasingly viewed as a vital component of effective service delivery for vulnerable people, and innovative packages of care and support are seen as the way forward.

8. The initiative is led by the Office of The Deputy Prime Minister (ODPM). It is a requirement that every local authority determines whether it will have a local charging policy.

9. The Government’s view is that where service users have the resources to do so, they should pay for certain Supporting People services.

10. The Supporting People Programme is set out by direction and guidance within the Local Government Act 2000 together with a number of background papers (see section 11 – Background Papers & Documents)

11. Fairer Charging for Home Care and other Non-residential Social Services legislation is a new piece of legislation which requires implementation is full by April 2003 and requires Councils to re-consider the way they charge for non-residential Social Services. The full financial effect of fairer Charging are not known at this stage, however, the local Supporting People Charging policy must be developed alongside the Council’s Fairer Charging Policy.

12. As the Council’s FC Policy has not yet been completed, there are elements within the Supporting People Charging Policy that cannot be clarified. This will be done once the Executive has approved the Fairer Charging Policy. It should be noted that both the Supporting People Charging Policy and the Council’s Fairer Charging Policy are to be implemented on 1^st April 2003.

STRATEGIC CONTEXT

13. The Supporting People Programme is intended to proceed using a number of key planning groups.

14. The Supporting People Shadow Strategy, 5 Year Strategy and annual plans have been developed with consideration of the linkages and crossovers between these plans. It is widely acknowledged that Supporting People will form an integral part of other local strategies and will help to build the links between local housing, health and social care strategies to meet a wide range of needs. Appendix 1 shows a map which identifies all other strategies and policies which inform the Supporting People Strategy.

CONSULTATION

15. There has been consultation with Supporting People Strategic Partners (The Supporting People Commissioning Body), Supporting People Stakeholders, via the Supporting People Strategic Core Group and within the Directorate of Social Services and Housing at a local level and nationally via consultation papers and a specific Supporting People web site (www.spkweb.org.uk)

FINANCIAL/BUDGET IMPLICATIONS

16. Supporting People will be a major revenue budget for the Council; however, the Supporting People Grant will be paid to the Council net of an assumed income from charging service users for housing related support services.

17. Supporting People Commissioning Bodies are free to decide not to charge for Supporting People services but Commissioning Partners must identify alternative funding sources to meet the revenue deficit so that the contractual requirements to fund existing services are met. The Isle of Wight Supporting People Commissioning Body (SPCB) has agreed that those service users who are in a financial position to pay for the support services they receive should be charged.

18. Any receipts from charging for Supporting People services will be ring fenced for service provision.

19. The guidance states that Councils should ensure that welfare benefits advice is provided to service users at the same time the charge assessment. Consequently there will be resource implications. Work is ongoing in order to determine the number of service users involved; however, research suggests that there will be in excess of 150 service users who will be entitled to apply for a financial assessment for Supporting People services.

LEGAL IMPLICATIONS

20. There is a requirement for local authorities to have a Supporting People Programme within their district under the Local Government Act 2000.

OPTIONS

21. It is considered that the following options exist:

i. Approve the Supporting People Charging policy

ii. Approve the Supporting People Charging Policy in principle but reserve the right to review it in light of the Councils Fairer Charging Policy with a view to ensuring that total income meets the assumed level of income referred to in paragraph 16.

EVALUATION/RISK MANAGEMENT

22. Arguably the biggest potential risk to the ultimate success of the Supporting People Charging Policy is that the Council fails to develop and approve the Fairer Charging Policy in time for the locally agreed elements of the Supporting People Charging Policy to be finalised.

23. The Supporting People Project Manager is working in partnership with the Fairer Charging Policy team in order to ensure a joint approach.

RECOMMENDATIONS

It is strongly recommended that option 2 be adopted

BACKGROUND PAPERS

· DoH circular 32 “Fairer Charging Policies for Home care and other non-residential Social Services” November 2001

· DTLR supplementary consultation paper “Charging and Means Testing” January 2001

· DTLR paper “Supporting People, Charging – Administrative Arrangements” January 2002

· ODPM Supporting People : Administrative Guidance – Interim Financial Package – including chapter 3 “ Charging Policy and Administration” 2002

ADDITIONAL INFORMATION

1. List of appendices

Appendix 1 Map of Strategic links

Appendix 2 Supporting People Fairer Charging Policy

Contact Point: Yvonne May. 01983 550477 [email protected]

J DOYLE

Acting Strategic Director of Social Services and Housing

R MAZILLIUS

Portfolio Holder for

Social Services and Housing

Charging Policy for Supporting People, Housing Related Support Services

I. Background and Summary

Government guidance, “Fairer Charging Policies for Home Care and other non- residential Social Services”, published in November 2001 required Local Authorities to review their charging policies. Further guidance, Supplementary consultation document – Charging and Means-Testing, Supporting People Charging – Administrative Arrangements and Interim Financial Package – Chapter Three – Charging and Administration, requires integration of charging for Supporting People, housing related support, services, and is the subject of this policy. The Supporting People Team have been involved in the consultation process of the Social Services policy

The Isle of Wight policy on charging for Supporting People services does not depart from government recommendations contained within “Supplementary consultation document – Charging and Means-Testing” in any significant way. The charging policy will take effect from April 2003.

Policy Principles

The overall principles of the charging policy are that it should be:

· Fair and understandable for users of services

· As administratively simple as possible for all parties

· Balance risk appropriately between providers and commissioners

· Consistent with other charging and income assessment policies locally

Policy Summary

The diagram below summarises the policy:

Long Term Service Services which aim to bring about independent

living within two years

Service user not in receipt of housing benefit

Service user in receipt of housing benefit

SS

No Charge

Either:

Maximum charge, or,

Financial Assessment

No Charge

To clarify the above diagram:

Examples of long term services are sheltered and extra care housing, some long term supported accommodation, for example, for people with Learning Disabilities.

Examples of services that are intended to last less than 2 years are refuges, homeless hostels and some floating/tenancy support services.

Users of services which aim to bring about independent living within two years will not be subject to a charge for their housing related support whatever their personal financial circumstances.

Users of long-term support services may be charged. However if the service user is in receipt of Housing Benefit they will receive full subsidy for the support charge and will not have to pay for the Supporting People services they receive.

Users of long term support services who do not receive housing benefit, will have the choice of:

v Paying the maximum charge for the service, or,

v Having a financial assessment to work out what they can afford to pay, in line with the Fairer Charging Policy. If the service user is in receipt of “basic” income support then the support charge will be fully subsidised. Only those who can afford it or who have capital of ****** will be asked to pay the maximum cost

(“Basic” income support is personal allowance plus applicable premiums, e.g. pensioner premium.)

To make the charging process as simple as possible, the financial assessment will cover both Supporting People and Social Services Homecare, so that one assessed charge will be collected to cover both services. The charge will then be divided between the Supporting People and Social Services accounts.

3. Charges and existing service users

Existing service users, who do not receive housing benefit, currently pay a support charge. There is no intention to increase these support charges from April 2003 (other than inflationary increases).

Sheltered Housing - Existing Tenants

Existing tenants of sheltered Housing who are not entitled to housing benefit, pay a support charge. There is no intention to increase the support charge to this group of tenants to reflect the actual cost of the support service, from April 2003. The ODPM recommends that authorities freeze support charges for these tenants. This protection could continue for the duration of the tenancy, alternatively, any increase in these charges, (apart from annual inflationary increases), would have to be fully discussed with tenants and agreed by the tenants at Supporting People service review.

New tenants after April 2003

After April 2003, any new tenants in Sheltered Housing will be liable for a charge that reflects the actual cost of the support service. People not eligible for housing benefit will have the choice of paying the full support charge, or having an assessment of their income and capital to calculate how much they can afford to pay.

4. The Financial Assessment and Charge Collection

WORK IN PROGRESS –

Recommendation - A Financial Assessment team to be set up to carry out financial assessments for both support services and homecare services. The team will be a joint team for Supporting People and Social Services.

Any user of a chargeable Supporting People service who is asked to pay towards their housing related support can apply to the team for a financial assessment. Providers will be encouraged to inform service users of this facility. An information leaflet to be produced for providers to give to new and existing tenants. A home visit will be arranged where necessary.

· The Service user will be asked for details of the services they receive and their income and capital.

· If their capital is above the upper limit (to be agreed) then the service user will pay the maximum charge for the service, otherwise:

· The amount user can afford to pay towards their services (in other words, their assessed charge), will be calculated taking into account:

v extra costs of disabilities

v housing costs.

· To ensure that service users have adequate income, the users income will not be reduce below “basic” income support plus 25%, after paying the assessed charge.

· To ensure the service user is not over charged, the assessed charge will be compared to the maximum charge for the services received by the user. The user will pay the lower of these 2 charges.

The user, provider and Supporting People team will be advised of the charge. The service user will pay the charge to their support provider, who may also be their landlord.

The service user will be asked to authorise the sharing of information between their service provider(s), and benefit agencies including Housing Benefit.

Change of Circumstance.

Service users and providers will be required to advise the assessment team of any change in circumstances, e.g. end of tenancy, change of service(s) received, or, in financial circumstances e.g. end of Housing Benefit entitlement. A regular review of the financial assessment will take place once a year; the assessment team will arrange this. Service users and providers will be liable in the event of wilful failure to advise the Supporting People team of changes in circumstances.

5. In keeping with the agreed Policy on Charging for Homecare and Non-Residential Social Services the following will apply:

Maximum Charge

Maximum charges will be set for long-term support services based on the actual costs of the service, however, the weekly amount charged will not exceed ***** This weekly maximum will be introduced from 1.4.03 and will be set at a proportion of the lower rate for residential care to ensure that it is never cheaper for users to enter residential care than to remain in their own homes. If a user has both a support and homecare package the £200 maximum will also apply.

Treatment of Disability Related Benefits

In consultation with local disability groups, a checklist of items of disability related expenditure to be drawn up and standard costs identified for each. (WORK IN PROGRESS)

If a user has exceptionally high expenditure, they can ask for discretion to be applied and an individual assessment of their disability related expenditure to be carried out.

It may not be cost effective to take disability benefits into account in the financial assessment and then deduct disability related expenditure. This will be reviewed after one year.

Benefits Advice

The guidance states that Councils should ensure that welfare benefits advice is provided to service users at the same time as the charge assessment.

Savings and Capital

Savings will be taken into account to calculate a tariff income on the same basis as set out in the Charges for Residential Accommodation Guidance (CRAG).

From April 2003 users with savings above the upper limit will be asked to pay the maximum charge of *** OR the true cost of the service they receive, whichever is the lower. The upper savings limit will be set in line with CRAG, (£19,000 from April 2003).

Users with savings above the upper limit may choose to buy the service privately.

Setting the Level of Charges

The basic principles of how charges will be calculated are that:-

· No one’s income is reduced to below basic Income Support (IS) levels, plus a buffer of 25%

· Users will normally be assessed as individuals, (Their income and capital will be assessed. “Basic” IS plus 25% for a single person, their own housing costs and their own disability related expenditure will be taken into account when calculating the charge).

· Users can ask to be assessed as a couple, if they wish. (Their joint income and capital will be assessed. “Basic” IS plus 25% for a couple, their joint housing costs, their joint disability related expenditure will be taken into account. The result will be divided by two to arrive at the individual assessed charge.)

· The difference between the lower rate of Attendance Allowance or Disability Living Allowance and the higher rate, which is paid if a person has both day and night support and care needs, is only taken into account if the person is actually receiving night support or care. Income is assessed net of housing and council tax costs (as distinct from housing related support).

· Assessable charge is compared with the maximum charge for all assessable services received; for example from April 2003, where a person receives supporting people service only, the maximum charge would be *** OR the true cost of the service they receive, whichever is the lower. If both Homecare and Supporting People services were received, the maximum charge will be *** OR the combined cost of the Supporting People service (actual cost) plus the cost of the Home Care service (number of hours received x **), whichever is the lower. No person would pay more than they can afford according to the combined financial assessment.

· Charges should be rounded down to the nearest 50p.

Hospital Discharge

Short-term housing related support services are all exempt from charging including services targeted at those people who have been recently discharged from hospital and have a support service to help them recover.

Appeals

WORK IN PROGRESS

Social Services and Supporting People to devise an appeals process. The process will most likely be a form the provider will supply to the service user including instructions on the appeal process, which will be agreed by April 2003.

6. Differences from Homecare Charging Process

· Users should only be charged on the basis of services they have explicitly agreed to receive. Such agreement will be evident in a tenancy agreement (e.g. in the case of sheltered housing) or in a ‘support agreement’ between the service user and support provider.

· Providers have a duty to inform service users of their right to a financial assessment. SP Team will agree standardised arrangements for so doing with providers.

· Charges become due from the date the service user/ provider agreement is signed (whether via a ‘tenancy agreement’ or a ‘support agreement’. Relief from such charges will be dated from the point of application for such relief. SP Team and partners will do further work to precisely define the process(s) for application and other detailed administrative matters (e.g. recovery of fraudulently claimed relief, mistakes in financial assessments, etc.) on receipt of further guidance from ODPM.

· Homecare is charged on an hourly (i.e. actual) basis whereas Supporting People services will be charged on real cost of service.

Appendices: 1) Provider Notes

2) Flow Chart of Charging Process

3) Definition of chargeable/longer term

4) Disability costs list (to be added)

Appendix (1)

Further note for Providers: SP ‘contracts’ and user charge collection

1. It is the intention of The Isle of Wight Supporting People that services which are subject to service user charging should be contracted for using a Block Subsidy contract.

2. This has the advantage that service users will have explicitly agreed to receive, and where their financial circumstances allow, pay towards, a defined service. Such a commitment will be contained in a landlord/tenant agreement (e.g. in the case of sheltered housing) or in a ‘support agreement’ between the service user and support provider (e.g. in the case of ‘supported living’ and non accommodation based services.)

3. Providers will be paid ‘subsidy’ for those service users assessed as needing help in meeting the financial cost of the service. This subsidy will be paid in advance. Adjustments will subsequently be made to ensure correct levels of subsidy have been paid. (Providers will receive monthly schedules of subsidy, summarised for each service within the contract and broken down to individual service users, in line with ODPM guidance.) It is a condition of receiving SP subsidy that providers agree to take part in SP review and monitoring processes.

4. Providers (whether landlords, support providers, or both) will collect service user charges and retain the income, providing necessary account records to users, and taking enforcement action where necessary.

Appendix (2)

Supporting People Charging Processes