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LAC (2005)7: Charges for residential accommodation: CRAG amendment no 23

National assistance (sums for personal requirements and assessment of resources) (Amendment) (England) Regulations 2005 (S.I. 2005/708)

This circular announces the amendments to the Charging for Residential Accommodation Guide (CRAG) which are to come into force on 11 April 2005. The amendments include revisions to the Personal Expenses Allowance, capital limits and savings disregards and new disregards in relation to special guardianship support and Armed Forces Compensation Scheme payments. It also reminds councils of the guidance in relation to residents who lack capacity and of their powers to operate deferred payments arrangements. The residential care charging arrangements apply to all care home residents receiving help from councils to meet the cost of accommodation provided under Part 3 of the National Assistance Act 1948.

The Annex contains fuller details.

A revised copy of the Charging for Residential Accommodation Guide (CRAG) is available below.

In recognition of the widespread use of the Internet, revised pages of CRAG are not being provided in hard copy.  Changes to CRAG will instead be clearly shown on the Internet version.

Summary

This circular:

I. Announces the revised Personal Expenses Allowance (PEA) of £18.80, which is to come into force on 11 April 2005.  The PEA applies to all care home residents receiving help from councils with social services responsibilities (hereafter referred to as 'councils') to meet the cost of accommodation provided under Part 3 of the National Assistance Act 1948.  Councils are also reminded of the purpose of the PEA.

II. Announces the revised capital limits of £12,500 (lower capital limit) and £20,500 (upper capital limit), which are to come into force on 11 April 2005. Councils are also reminded of the effect of the revised capital limits on charges for home care.

III. Announces the revised savings disregards of up to £4.85 per week for individual supported residents aged 65 and over and up to £7.20 per week for couples, which are to come into force on 11 April 2005.

IV. Advises councils of a new income and capital disregard to cover payments of financial support made to special guardians or prospective special guardians under a new scheme to be introduced by the Department for Education and Skills.

V. Advises councils of the £10 income disregard which applies to recipients of the new Armed Forces Compensation Scheme (AFCS) announced by the Ministry of Defence.

VI. Reminds councils of the guidance in relation to residents who are unable to manage their own affairs and alerts them to the role of the Public Guardianship Office in this area.

VII. Reminds councils of their powers to operate deferred payments arrangements.

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