To update Cabinet on the changes to the financial assessment framework introduced by the new Social Services and Well-being (Wales) Act 2014 for residential and non-residential services and seek approval to undertake a formal consultation exercise to inform a new Charging Policy.

The Head of Finance and ICT presented a report, in order to update Cabinet on the changes to the financial assessment framework introduced by the new Social Services and Well-being (Wales) Act 2014 for residential and non-residential services, and to seek approval to undertake a formal consultation exercise to inform a new Charging Policy.

He confirmed that the charging and financial assessment provisions are contained in Part 5 of the above Act, and this this allows local authorities to impose charges for providing or arranging a service where appropriate. The Act provides for regulations to create a framework for charges, including matters to be taken in account in determining a person’s ability to pay; and a system for review of a local authority’s determination in this respect.

The Head of Finance and ICT advised that the Act provides for a single legal framework for charging for care and support, or in the case of a carer, charging for support. It provides a local authority with the discretion to charge in either case. It also provides authorities with the discretion to require payment of a contribution, or a reimbursement, towards the cost of securing care and support (or support to a carer) where a person receives direct payments to enable them to obtain this.  Local authorities can exercise this discretion to charge, or to require a contribution or reimbursement where they feel it is appropriate to do so and where they have established that the person required to pay any charge, contribution or reimbursement has sufficient financial means to do so. The framework entirely replaces the existing framework that is currently in use he added.

He then referred to paragraph 4.3 of the report which outlined the main charges being introduced by the Act in relation to Charging and Financial Assessments, whilst paragraph 4.4 confirmed the major elements of the Authority’s existing framework that remained unchanged under the new framework.

The Head of Finance and ICT then referred to the section of the report relating to Deferred Payments. These are legal agreements which currently allow the resident to defer part of their care payments until either the resident sells their main home, or until 56 days after the resident’s death.

However, the Social Services and Wellbeing (Wales) Act 2014 introduced some changes to deferred payments, and the main ones of these were identified in paragraph 4.7 of the report.

The Head of Finance and ICT then confirmed, that once more as a result of the Act, it was necessary to propose a change to paragraph 5.9 of Scheme B2 of the Scheme of Delegations as a function allocated to the Corporate Director Social Services and Wellbeing, and this amendment was required to be affected from 6 April 2016. The amendment was shown in paragraph 4.10 of the report.

He then concluded his submission by sharing with Cabinet, information relating to a new Charging Policy.  As local authorities were required to charge for residential accommodation under the National Assistance Act 1948, there was no requirement for Councils to have a policy in relation to residential charging. Therefore, in order to inform and create a new Charging Policy, it was necessary to undertake a formal consultation exercise. He added that the non-residential charging policy that was agreed by Cabinet on 30 April 2013 would also be reviewed.

Finally, he advised that the new financial assessment rules apply to those that have new care plans made under the Act. Existing cases would be transferred onto the new assessment arrangements during April 2016.

The Cabinet Member Adult Social Care and Health and Wellbeing expressed a little concern regarding the report’s financial implications and paragraph 7.2, where it stated that any loss of income as a result of the report’s proposals would be met from within existing Social Services and Wellbeing resources, which may put further pressure on the service. He asked the Corporate Director Resources if she could look at this as part of the budget requirements, and she agreed that she would.

The Head of Finance and ICT confirmed that such a budget pressure could arise if a person had more than one 8 week period in respite care in the space of 12 months.

The Deputy Leader added that this should be monitored, as Anglesey Council had predicted that costs for the changes relating to the financial framework assessment of residential respite care alone as a result of the introduction by the new Act could be as much as £1m.

RESOLVED:            That Cabinet:

1. Noted the new financial assessment and charging framework under the Social Services and Well-being (Wales) Act 2014.
2. Approved that a formal consultation exercise be undertaken in order to inform a Charging Policy as set out at paragraphs 4.11 - 4.14 of the report.
3. Noted that a further report would be brought to Cabinet following the outcome of the consultation exercise.
4. Approved amendment to the Scheme of Delegations in relation to Deferred Payment Agreements as set out in paragraph 4.10 of the report with effect from 6 April 2016.