The LAF Supporting People for Frontline Workers Seminar raised a lot of questions about different aspects of the new programme. Charging for services was one are that caused some concern and confusion. Here is a basic guide to how charging will work. 

The Office for the Deputy Prime Minister (ODPM) released the long awaited Supporting People Interim Financial Package on 10 June 2002. It contained a great deal of information about the nuts and bolts of Supporting People, including a large section on charging for Supporting People services.

Many of the questions and issues raised about charging at LAF’s recent Supporting People seminars had already been taken up with the ODPM by national organisations such as SITRA and the National Housing Federation. This meant that the guidance addressed many of these issues in some detail. Here we will attempt to provide some clarity about charging using information taken directly from the Financial Package as well as subsequent briefings produced by the National Housing Federation and discussions with members of the Leeds City Council Supporting People Team.

Where does charging fit in to Supporting People?

Supporting People will be used to provide free ‘short term’ support services, and means-tested ‘long term’ support services. Charging will affect some people who are receiving the long term support services, generally those that are making some sort of financial contribution already. The main way means-testing will be implemented on the longer term services is through the housing benefits system: if a tenant is in receipt of housing benefit, they can receive free long term support. If not, they will be liable to charging. However, there are some additional subsidies for those not on housing benefit but on a low income.

Does there have to be charging at all?

The local Commissioning Body (the local partnership which oversees the implementation of Supporting People in your area) will determine any local variations to the national charging policy. They may decide not to implement charging at all. However, they cannot favour certain sectors (e.g. implement charging in the private sector but not the voluntary sector).

The Supporting People grant will be paid by Central Government to the local Commissioning Body minus any amounts they calculate should be collected via charging.  It will therefore be up to the Commissioning Body to top up their Supporting People pot with funding from other sources should they decide to reduce charging or eliminate it altogether.

So who exactly will and won’t be charged?

Here’s a basic breakdown of who the ODPM expects will and won’t be charged for Supporting people services:

Won’t be subject to charging:   

• anyone in receipt of housing benefit   
• anyone receiving short term support (services or supported accommodation planned to last less than two years)   
• floating support will generally be considered to be short term and will usually be free of charge

Will be subject to charging:   

• anyone receiving long term support (more than two  years) and those in sheltered housing with an open ended support package, if they are not in receipt of Housing Benefit

The two year period being used to differentiate between short and long term support is being treated as a ‘rule of thumb’ and there will be some flexibility to avoid  unwarranted bureaucracy and unfairness. The degree of flexibility is expected to be determined on  a case by case basis (and within reason).

What if our service is a mixture of short & long term support?

For mixed services — those that offer support on both a temporary and long term basis — charging will be determined  on a case by case basis in negotiation with the local Supporting People Team.

Is charging fair on those with long term support needs?

There is some degree of concern about people with longer term support needs being affected by charging under Supporting People. In particular, older people, disabled people and some users of mental health provision may be particularly affected. There have been suggestions that such a negative impact on specific groups would render the charging proposals unlawful  under the Disability Discrimination Act 1995 or the Human Rights Act 1998. The ODPM have stated that they do not consider charging to have any legal implications under either of these Acts.

While there may or may not be legal ramifications, the fairness of this situation is still hotly debated. The ODPM is well aware that Supporting people has to be fair to be effective and have introduced a subsidy scheme and some specific undertakings for current service users.

What are subsidies?

There will be means-tested subsidies available for people facing charges. People can request a financial assessment which will determine the level of subsidy available to them. As a result, those liable for charges could still receive free or partially subsidised services.

The assessment process is expected to mirror those currently used for non-residential social services such as home care. These processes are all determined locally, but operate within parameters set by national statutory guidance on fairer charging. Supporting people and Social Services assessments are likely to be integrated so that one assessment will be used for a range of support provision both within and outside of the Supporting people programme.

How the subsidies will be paid (along with who will collect charges)  will depend on the tenancy relationship between the service provider and the service user, and on the provider’s contract with the Administering Authority. A good account of the different charging models is given in the National Housing Federation briefing “Charging for Support Services under Supporting People” available from NHF website (see below).

What about those who currently get free long term support?

The ODPM has established a principle that no one should be worse off after Supporting People than before it. For example, those currently receiving long term support funded via SHMG grants will continue to receive free support for a transitional period.

Likewise, those who suddenly lose entitlement to Housing Benefit after April 2003 because their rent has dropped will also receive transitional protection.

In a nutshell, no-one should be worse off immediately after 1 April 2003, and some may even find themselves better off because of the subsidy system. However, charging will be introduced over time for those with transitional protection, probably during the review process, so this situation may change.

How will it all work?

One of the main concerns is the additional burden that could be placed on service users and/or providers to determine whether people are exempt from charging. There are already plans to minimise that burden as far as possible:

• passporting housing benefit recipients for free Supporting People services. The theory is that IT systems will provide Supporting People Teams with information about Housing Benefit recipients, making Housing Benefit a ‘one-stop-shop’ for free Supporting People services. This should avoid too much additional bureaucratic burden being placed on service users. However, just putting the terms ‘passport’ and ‘IT’ together is enough to make many people sceptical about whether or not this system will ever really work!
• local authorities are already working to combine Supporting People financial assessements their social services Fairer Charging policies.

In summary

• There will be no charging at all for short term support services or for the majority of floating support services
• Recipients of housing benefit will not be charged for any long term services either
• Those facing charges can request a financial assessment to have costs fully or partially covered by a subsidy
• Service users who lose entitlement to Housing Benefit  because of the changes on 1 April 2003 should not be any worse off for a transitional period
• Anyone receiving long term support via SHMG grants will be protected from charging for a transitional period
• Any protection in the interim period will gradually be replaced by local charging policies linked closely with local social services non-residential charging regimes (subject to ODPM and Department of Health guidance).

For further information, go to: http://www.housing.org.uk or http://www.spkweb.org.uk