Adults

The charging rules (and administrative processes) for Supporting People services in Medway

Part 1 - Introduction

1. The Requirements for Charging Rules

The Supporting People (England) Directions 2003 require that rules for the charging of service users must be included in the Supporting People Strategy of the Commissioning Body.

Supporting People Grant Conditions state that the Administering Authority shall apply the charging rules approved by the Commissioning Body and shall ensure that the charging rules include:

• the circumstances in which there is to be relief from charges;
• a process for applying for relief from any charges, where charges are payable;
• a process for determining the date of application;
• rules for the recovery of overpayments;
• appropriate mechanisms for individuals to seek a review of any decision about the application of the charging rules.

2. The key requirements of the Grant Conditions when setting the local rules

2.1 The Grant Conditions stipulate that service users who were previously in receipt of Transitional Housing Benefit, or who were previously in local authority services with pooled costs, should not suffer financially from the move to the new administrative arrangements under Supporting People. Such individuals must be transitionally protected by receiving services of the same level, quality, nature and cost until a service review has taken place.

2.2 Charging rules should be transparent and fair. This means that they should not differentiate between services of an equivalent nature simply on the basis of the service provider or landlord. Such differentiation would be unfair to service recipients.

2.3 People in short-term services should be exempt from charges.

Part 2 -The Charging Rules and Administrative Processes in Medway

1. Service provision

“Short-term” non-chargeable services

1.1 Service users will not have to pay for housing-related services in schemes designated as short-term under Supporting People guidance. Under current guidance schemes are designated as short-term schemes if they meet either of the following conditions:

• the scheme aims to bring about independent living within two years (disregarding practical delays in securing move-on accommodation) following resolution of a specific need or needs which the supported living arrangement aims to remedy, or following completion of a time-limited programme of support of under two years intended duration; or
• the support offered under the scheme aims to increase the capacity for independent living (even if fully independent living may not be likely) through a package of time-limited housing-related support with an intended timescale of under two years

Long-term chargeable services

1.2 A service is not short term if it aims to maintain a limited degree of independent living which is not expected to increase significantly, and may diminish over time, as part of an open-ended or long term (over two years) arrangement.

1.3 Support Services provided by Home Improvement Agencies are excluded from the category of services which are deemed short term.

1.4 It is possible that some service users within a scheme could be short-term and others long-term. In these circumstances the scheme will be designated a mixed scheme.

1.6 Services which offer fluctuating support will generally be treated as short-term schemes. Support will be treated as fluctuating if there are periods of four weeks during the last year where support has neither been needed nor received, or if this is an assumption or aspiration in the support package provided (except where the service user is absent from their property for circumstances outside their control).

1.7 Where a service user moves from short-term to long-term status in a mixed support scheme, support will become chargeable from the month following the agreement of an open-ended package of support. If a service user moves from long-term to short-term status, support will cease to be chargeable from the date of the change.

1.8 Any changes to the chargeable status of schemes will be made by the Commissioning Body. In the case of new schemes, where it is not possible for the Commissioning Body to decide the status of the scheme in advance, then the Administering Authority will make an interim decision.

1.9 Service users will be charged a support charge for all Supporting People Services which are not short-term services. The support charge will be the cost of the support service as specified in the services contract between Medway Council and the service provider.

1.10 All service providers will complete service contracts with Medway Council which will state whether or not a service is chargeable to service users.

1.11 If a service is chargeable, each service user will undertake a legally binding obligation to pay the full support charge to the service provider from the commencement of the service to the service user.

1.12 Where the support service is provided as part of an integrated package of accommodation and support service, the service user’s obligation to pay support charges will be contained in the tenancy agreement or occupation licence (which will be collectively referred to as the Occupation Agreement) which the service user will enter into with the service provider.

1.13 Where the support service is not linked to an Occupation Agreement, the service user’s obligation to pay the support charges will be contained in a support agreement into which the service user will enter with the service provider.

1.14 In the agreement between the service user and the service provider the service user’s obligation to pay the support charge will be clearly and separately identifiable from any other money charge such as rent or other service charge.

1.15 The services provider will be responsible for the collection of any support charges due from the service users. These may be collected using the same collection methods as the service user’s rent.  

2. Payments to Services providers

Contract payments (and Service Level Agreements)

Types of contract

2.1 There are two types of contract which are used in most circumstances between Medway Council (the Administering Authority) and service providers. One is known as Block Gross and the other is known as Block Subsidy. Different contractual arrangements are made in some circumstances, e.g. leaseholders. Some Supporting People Services in Medway are provided by Medway Council Departments who enter Service Level Agreements with the Supporting People Department. For the purposes of these charging rules all references to contracts should be taken to include such Service Level Agreements when appropriate.

2.2 During the initial phase of the Supporting People Programme since 1 April 2003 Medway Council will use the Interim Contract prescribed by the office of the Deputy Prime Minister for Block Gross and for Block Subsidy services contracts.

2.3 After the Interim Contract Stage Supporting People Services will be commissioned by Medway Council under long term contracts known as Steady State Contracts.

2.4 When chargeable services are commissioned under an Interim Contract Medway Council will use a Block Subsidy contract as recommended by the Office of the Deputy Prime Minister.

2.5 When chargeable services are commissioned under a Steady State Contract Medway Council may use a Block Gross contract or a Block Subsidy contract.

2.6 Under Block Subsidy contracts service users who are liable to pay for their support pay this to their landlord or support provider. (This is similar to the position prior to April 2003, where support costs were part of rent.) For all other service users the Medway Council will pay a subsidy to the provider. This subsidy will be based on full or partial unit costs, depending on the extent to which the service user is entitled to relief from charges. Payments will be made by Medway Council to the service provider periodically in advance, with a series of adjustments to take account of service users’ changes of circumstances. Under Block Subsidy contracts service providers are only paid in respect of service users who are eligible for subsidy.

2.7 Under Block Gross contracts the provider is paid the whole cost of the service. Under Steady State Block Gross contracts individual service users who are liable to pay support charges will be charged by the  service provider and reductions will be made to contract price payments on account of these charges.

2.8 Leasehold sheltered services will not be subject to the above contracts but eligible people will be subsidised through the use of spot payments. In the case of leasehold services, this will be via a single annual direct payment to the leaseholder. Leaseholders are entitled to subsidy on the same basis as other users except that Income Support or Income Based Job Seekers Allowance is used rather than Housing Benefit to determine full charge exemption. Leaseholders are required to inform the Supporting People Team of relevant changes of circumstances in the same way as any other service user.

3. Relief from Charging (General)

3.1 Service users will be given relief from paying support charges where:

3.1.1 the service user is eligible for Housing Benefit; or

3.1.2 a service user not eligible for Housing Benefit, may be eligible for full or partial relief from support charges through Medway’s Fairer Charging policy. A copy of the policy is available on request. This is more generous than Housing Benefit as earned income is disregarded and the capital thresholds (where savings can be disregarded) are higher. Medway Council’s Financial Assessment Officers will calculate entitlement for this relief; or

3.1.3 the service user is entitled to transitional protection; or

3.1.4 another agency is statutorily required to pay the costs of these services. For example housing related costs relating to 16 and 17 year old care leavers are the responsibility of the relevant local authority’s Social Services department

4. Relief due to receipt of full or partial Housing Benefit

4.1 Any service user who is in receipt of any Housing Benefit is entitled to be exempt from paying for any service funded by Supporting People.

4.2 Service providers are required to inform service users of their right to apply for relief from charges, and to encourage and facilitate them in doing so. They should encourage service users to apply at the start of a relevant tenancy or support agreement to ensure that backdating of any relief from charges can be made to the start of such an agreement.

4.3 If proof of Housing Benefit entitlement is produced to the Supporting People Team, full relief from support charges will be backdated to the time a successful application for benefit was made or the commencement of the provision of the support service, whichever is the later, and will continue until the service user ceases to be entitled to Housing Benefit. The service provider will provide the relief and will make any refund to the service user in relation to support charges which the service user has paid for as is necessary to effect backdating.

4.4 Service providers of chargeable services are required to inform the Supporting People Team of any material change of circumstances of their service users that they are aware of which may affect the service user’s entitlement to relief from charges for housing-related support, including any information relating to service users’ Housing Benefit status.

4.5 Where overpayments are made to a service provider in respect of a service user an adjustment may be made in accordance with the service contract.

5. Full or partial exemptions following a Fairer Charging Assessment

5.1 Service users who are not in receipt of any Housing Benefit are entitled to apply for a Fairer Charging Assessment.

5.2 Application forms for a Fairer Charging Assessment are available from the Supporting People or Fairer Charging Teams. All service providers for chargeable services should hold application forms and information.

5.3 It is expected that service providers under Interim Contracts will assist each individual to complete their Fairer Charging Financial Assessment Form to receive their entitlement to relief from support charges. Service providers under Steady State Contracts will have an obligation to provide this assistance.

5.4 Completed application forms should be returned to Financial Assessment Team Room 141 Municipal Buildings Canterbury St, Gillingham Kent ME7 5LA.

5.5 The Financial Assessment Officer will assess the contribution (if any) which each service user must make to their support charges under Medway’s charging rules criteria. Relief from the balance of the support charges will be given by the Administering Authority.

5.6 The Financial Assessment Officer will formally notify the Supporting People team, service user and the service provider of the outcome.

5.7 The service provider should then liaise with the Supporting People team to validate the relief and arrange for any adjustments to be made to service contract payments.

5.8 Where relief from support charges is granted as the result of the Fairer Charging Assessment, the relief will be backdated to the date of the application for the Fairer Charging Assessment or the commencement of the service provision, whichever is the later except that :

5.8.1 For the financial year 2003/2004, for all applications received by 1 October 2003, relief from support charges will be backdated to 7 April 2003 or the commencement of the service provision, whichever is the later.

5.8.2 Where an application for Fairer Charging is made further to an unsuccessful Housing Benefit claim in 2003/04 or in later years, relief from support charges will be backdated to the commencement of the service or the date of the Housing Benefit claim, whichever is the later.

5.9 The relief granted under the Fairer Charging Assessment will continue until the earliest of :

5.9.1 change of circumstances makes the service user ineligible for such relief;

5.9.2 The service user’s Supporting People care package changes;

5.9.3 the Fairer Charging Assessment ceases to have effect one year from the date of the application for the Fairer Charging Assessment.

5.9.4 Where relief from payment of support charges is backdated the service provider will effect the relief by making a refund to the service user.

5.9.5 The date of the service user’s making the application for a Fairer Charging Assessment will be determined using the same criteria as an application for Housing Benefit is determined.

5.10 Where service users receive both Supporting People Services and Homecare Services a single Fairer Charging Assessment will be carried out and support charges collected will be apportioned on a pro rata basis between the two services based on the respective cost of each service.

5.11 Subsidy payable as a result of the fairer charging assessment will be calculated and reviewed in accordance with the Fairer Charging Assessment Policy.

5.12 Service users receiving Supporting People eligible services prior to 31/03/03 will not be entitled to request a fairer charging assessment prior to service review. In exceptional circumstances however a second assessment may be granted. This will be treated in the same manner as an appeal.

6. Effective Dates for Award of Relief from payment of Support Charges

6.1 Where service users are eligible for relief from payment of support charges, the relief will be backdated to the earliest of:

6.1.1 The date of commencement of an award of Housing Benefit; or

6.1.2 The Monday following the date they applied for relief under the Fairer Charging Assessment. (This will be the date of application for housing benefit if the applications are made simultaneously)

6.2 If a service user is absent from the property which the support charge relates to for circumstances outside the service user’s control (e.g. the service user is in hospital or respite care) Medway Council will continue to make payments as long as all the following criteria are satisfied:

6.2.1 The service user is in receipt of Housing Benefit or is eligible for at least the same level of subsidy resulting from a Fairer Charging Assessment applicable when the service user was present at the property;

6.2.2 The service user intends to return to the property;

6.2.3 The service user is away for no longer than 12 months,

6.2.4 The service user retains a tenancy or licence at the same address;

6.2.5 The Occupation Agreement or service agreement that obligates the service user to be liable for the support service charges is not altered during the period the service user is away except with the written prior agreement of Medway Council; and

6.2.6 The property the charge relates to remains unoccupied

6.3 In the event of the death of a service user who is a sole tenant, payment of subsidy shall continue until the following Monday at the same rate that was payable immediately before death.

7. Transitional Protection (General)

7.1 Service users who receive housing-related support prior to April 2003 (as part of their overall rent) will continue to do so at no increase in cost to themselves, (excluding inflation). This will last until their circumstances change or their support scheme is reviewed. Service users will therefore not have to contribute to the cost of services that were, prior to 01/04/03, being funded purely from non-contributory “legacy” funding sources (i.e. Supported Housing Management Grant and/or Probation Accommodation Grant Scheme), until the transitional protection ceases.

7.2 Service users do not need to apply for this transitional protection. Relevant information will be provided by Housing Benefits sections in accordance with the Department of Work and Pensions HB/CTB Circular A15/2002. However all such users may be asked to give permission for the Supporting People Team to verify this with the Housing Benefit Section on an ongoing basis.

7.3 The first round of scheme reviews will take place on a rolling basis over a three-year period from April 2003 until March 2006. The principles by which the review programme is established are set out in guidance from the Office of the Deputy Prime Minister.

7.4 Where a service provider has advised the Supporting People Team that a service user is entitled to relief from support charges, the service provider must inform the Supporting People Team of any change of circumstances of which the provider is aware on the part of the service user which could affect the service user’s entitlement to relief from payment of support charges. If overpayments are made by the Medway Council to a support provider due to the service provider failing to inform the Supporting People Team of a change of circumstances that affects a service users entitlement to transitional relief, the provider will be liable for the relevant amount. The method for collecting such overpayments will be made on an adjustment basis to future support service payments. Accuracy of information will be monitored through the scheme review and contract monitoring arrangements.

8.Transitional protection for Local Authority tenants in relation to unpooled Housing Reserve Account

8.1 Prior to April 2003 Medway Council, in common with many other Local Authorities, has spread all or part of the costs of providing housing-related support across all its tenants. The amount of this support has been identified, where relevant, in the Housing Revenue Account of the Council and is known as unpooled HRA.

8.2 In the case of tenants whose rents are unpooled in April 2003 but are not required to pay any support charge in any case because they are in receipt of Housing Benefit, any unpooled HRA costs of their support will be met from within the Supporting People Grant.

8.3 In the case of tenants whose rents are unpooled in April 2003, and who are not eligible for Housing Benefit, such tenants will receive transitional protection in real terms from the unpooled HRA elements of their service. The cost of providing this protection will be met by the local authority from resources freed as a result of the unpooling exercise.

8.4 In either case, service users do not need to apply for this transitional protection, it will be calculated and applied automatically. This protection will be reviewed on an annual basis as part of the HRA rent setting process.

8.5 When a service charge is increased for inflation and there are both unpooled and residual service charges, they will be increased by the same percentage. The increased residual amount will be payable by the service user.

9. Rules for adjustments and errors under Services Contracts

9.1The provisions for adjustments for errors in contract payments relating to service user relief from support charges are set out in the services contract. The underlying rule is that that the party which makes an error will be liable for any consequent inaccurate payments.

10. Appeals

10.1 Service users who wish to appeal against a Housing Benefit determination must do so directly to the Council’s Housing Benefit section using the standard appeals process of that section.

10.2 Service users who wish to appeal against a decision made by a Fairer Charging Assessment Officer must do so directly to the Fairer Charging Assessment section using that sections standard appeals process.

10.3 Service users and service providers who wish to appeal against a decision about their chargeable status should make such an appeal in the first instance to the Supporting People Manager. If this does not resolve the matter, an appeal can be made to the Commissioning Body which will hear the matter at the next available meeting or may delegate the hearing of the matter to a panel of members of that Body.

10.4 Service users and service providers who wish to complain against any other decision or action made by the Administering Authority or the council should do so in accordance with Medway Council’s normal complaints procedure

^ (back to top)