Adults, Health & Community wellbeing
Policy Document
Putting People First
Self-directed support – Income collection and debt
recovery policy
Lead Director:
Liz Chidgey, Deputy Executive Director, Adults, Health and
Community Wellbeing
Adults, Health & Community Wellbeing Management Team
17th July 2008
Policy approved by:
Date Policy
approved:
Implementation Date: September 2008
Review Date:
July 2009
Status:
Final
Version no:
Final
Adults, Health & Community wellbeing
Document Control Sheet
Title of Policy:
Purpose of Policy:
Putting People First: Self-Directed Support – Income
collection and debt recovery policy
To confirm the policy on income collection and debt
recovery in relation to Self-Directed Support for Adult Social
Care in Essex
Operational policy
Type of Policy:
Target Audience:
Managers and staff involved in delivery and administration
of the income collection and debt recovery processes for
users of self-directed support services
1 September 2008
Implementation Date:
Action required:
Adoption of this policy as the framework for the income
collection and debt recovery processes for self-directed
support in Adult Social Care.
N/A
This policy supersedes:
This policy should be
read alongside:
Lead Director:
ECC SDS Charging Policy
ECC SDS Strategic framework policy
ECC SDS Direct Payments policy
ECC Safeguards policies
ECC Fraud policy
Liz Chidgey, Deputy Executive Director, Adults, Health and Community
Wellbeing
Rebecca Halpin
Policy Lead / Author:
Project Team:
Anna Casbolt, Amanda Julian, John Webster, Ron Hiller, Karen
Bellamy, David Williams, Valerie Russell, Gillian McDonald
Draft Versions only:
Comments to:
Deadline:
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Adults, Health & Community wellbeing
Putting People First
Self-Directed Support – Income collection and debt
recovery policy
1. Policy Statement
1.1 This policy underpins the process for collecting income from service users of Adult
Social Care in Essex who have been assessed as having to pay a charge in relation
to their care. It also underpins the process for recovering debt from service users.
1.2 The policy allows for Essex County Council (ECC) to maintain its duty of care toward
service users whilst undertaking to collect income and recover debts by allowing
service users to continue to access the support that they require.
1.3 This policy is an extension to the main ECC Income Collection policy to recognise the
specific circumstances in relation to Adult Social Care and Self-Directed Support. It
should be read in conjunction with the ECC Self-Directed Support Charging Policy.
1.4 This policy forms part of the over-arching Self-Directed Support (SDS) policy for social
care provision, and, in line with the Putting People First approach towards social care,
shares the same goal of promoting the independence and health of service users,
while improving the choice and control offered to service users.
2. Guiding principles
 Every service user who has been assessed as being able to pay towards the cost of
their support will be required to pay a charge.
 Where a debt has been incurred by a service user, all reasonable means will be
used to recover the debt.
 ECC will pursue all debts.
 The Council’s statutory duty of care towards people assessed as needing services
remains.
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3. Outcomes
3.1 To deliver an income collection system that enables the Council to effectively collect
income and recover debts owed by service users whilst ensuring that the Council’s
duty of care towards service users is maintained.
4. Scope and exclusions
4.1 This policy applies to users of Adult Social Care services in Essex who have received
support under the Self-Directed Support scheme and who have been assessed to pay
a charge towards their support.
4.2 This policy also applies to all SDS service users who have not paid their assessed
charge/s or other applicable SDS payments within the appropriate timeframe specified
by the Council.
5. Regulatory and policy context
5.1 The central government, through the Department of Health, sets the strategic direction
of adult health and community wellbeing in England. It also provides the legal
guidance and policy framework and funding to local authorities to enable them to
operate effective services. While central government sets the strategic direction, it
does not have direct responsibility for delivering services. Essex County Council has
responsibility for meeting eligible adult community care needs.
5.2 Essex County Council has issued a number of policies and practice guidelines that
govern the administration of adult health and community wellbeing in Essex, of which
this policy forms a part. These documents complement the policy documents that
have been released by central government which set out the guiding principles and
objectives to be fulfilled by the model of Self-Directed Support.
5.3 More specifically, Section 17 of the Health and Social Services and Social Security
Adjudications Act 1983 (HASSASSA Act 1983) gives councils a discretionary power to
charge adult recipients of non-residential care services and provides that councils may
recover such charges as they consider reasonable in respect of relevant services.
5.4 Essex County Council has also issued a set of Financial Regulations which govern,
among other financial matters, debt recovery and bad debts.
5.5 As a result, this policy has been designed to be consistent with national and local
policy, legislation and regulations, a list of which is located at Annex A.
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6. Policy Background
6.1 Essex County Council is required to provide Adult Social Care services to those
individuals who qualify under the Council’s eligibility criteria. This is provided via a
system of Self-Directed Support.
The Self-Directed Support framework
6.2 Self-Directed Support is the new model for Social Care across the country. The aim of
Self-Directed Support is to transform support provision by putting service users in
control and by tailoring care to individual needs.
6.3 Under the Self-Directed Support framework, if an adult is deemed to be eligible for
support they are required to undertake a supported self-assessment to establish an
indicative personal budget. The service user can then use their personal budget to
meet their care needs in accordance with an agreed support plan.
6.4 Every service user who can afford to will be required to make a financial contribution
towards the cost of their support. Under the ECC Financial Regulations and other
national guidance, all reasonable means may be used to recover a debt from service
users.
7. Policy Requirements
Charging for services
7.1 The Department of Health Guidance - Fairer Charging Policy for home care and other
non-residential social services: Guidance for Councils with social services
responsibilities – states that every service user who can afford to will be required to
make a financial contribution towards the cost of their support. Applicable charges are
decided by way of a financial assessment. All financial assessments will be carried
out in line with the current operational guidance and service standards.
7.2 See the ECC Charging Policy for more information on charging for services.
Non-payment of a charge
7.3 If a service user, or the person acting as their representative, fails to pay their
contribution within the timeframe specified by the Council, and no correspondence or
contact is received from the service user in the form of either:



a payment,
notification of a review or appeal process, or
notification of a change in circumstances
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Adults, Health & Community wellbeing
ECC will assume that the service user, or the person acting as their representative, is
withholding payment without just cause.
Investigating non-payment
7.4 If payment has been deemed to be withheld without just cause the Council will
undertake an examination of the users’ debt based on an individual’s circumstances.
The examination will include one or more of the following:



contact with the service user or their representative in order to understand
the reason for non-payment, if any (at this point it is possible that the user
may request a review of, or appeal, a charge);
examination of the original charge calculation to ascertain the accuracy of
the charges that the service user has failed to pay; and
contact with care managers, social workers and other individuals who may
have a relationship with the service user under examination.
7.5 The investigation should enable ECC to gain a complete picture of the circumstances
surrounding non-payment. If it is concluded that the service user has the ability to pay
a charge, and there are no extenuating circumstances, debt recovery proceedings will
be instigated.
7.6 If there are extenuating circumstances, these will be considered and provision made
as appropriate. This is in order to maintain the Council’s overarching priority of putting
the customer first.
Recovering a debt
7.7 Where a service user is assessed as having the ability to pay a charge and does not
pay, this is considered a debt. Under the ECC Financial Regulations and other
national guidance, all reasonable means may be used to recover a debt from service
users in a timely way.
7.8 When considering whether to instigate debt recovery proceedings, the Council will
have regard to the size of the debt, the costs that would be incurred by undertaking
debt recovery procedures, and the effect on the service user.
7.9 Taking all of these areas into consideration, the Council will undertake any form of
debt recovery action as appropriate to the circumstances, including recovery via the
Courts if appropriate. This could include, but is not limited to, the following:




issue of a Final Demand;
use of Debt Collection Agencies;
negotiation of deferred/instalment payment plans;
commencement of legal proceedings.
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Adults, Health & Community wellbeing
Notification of change in service users’ legal status
7.10 If, during the debt recovery process, ECC receives notification of a change in the
service user’s ability to manage their finances, the debt recovery activity should be
suspended. In order to verify the ability of the service user to manage their finances,
ECC will expect to receive a certified copy of a registered Enduring Power of
Attorney, a Lasting Power of Attorney with evidence that the service user lacks
capacity, or Court Order made on behalf of a Deputy.
7.11 Although notification of a Power of Attorney or Appointeeship does not mean that the
service user lacks the capacity to manage his or her affairs, this may cause the
process to be suspended if considered in the best interest of the service user.
Debt recovery and the Council’s duty of care
7.12
The Council’s statutory duty towards people assessed as needing services remains.
Review of a charge and debt recovery
7.13 Section 17(3) of the HASSASSA Act 1983 gives service users the right to ask a
council for a review of a charge which has been assessed if the user considers that
they cannot afford to pay it. Under the legislation, the Council must be satisfied that
the user’s means are insufficient to pay the amount they would otherwise be charged,
before deciding to reduce or waive a charge.
7.14 Where a service user has requested a review of their charge/s, any debt recovery
action relating to the charge/s will be suspended, although ECC will continue to
generate the charge until a decision regarding the charge/s in question has been
reached.
7.15 If a review rules that a charge/s is correct (that is, the ECC charging policy has been
applied accurately), appropriate debt recovery action will be reinitiated. If a review
rules that a charge/s is incorrect (that is, the ECC charging policy has not been
applied accurately), the charge/s in question will be recalculated and the account reissued.
Appeal of charge and debt recovery
7.16 Section 17(3) of the HASSASSA Act 1983 gives service users the right to appeal a
charge which has been assessed if the user considers that they cannot afford to pay
it. Under the legislation, the Council must be satisfied that the user’s means are
insufficient to pay the amount they would otherwise be charged, before deciding to
reduce or waive a charge.
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Adults, Health & Community wellbeing
7.17 If a service user has had a charge/s reviewed and they still do not agree that the
charge is accurate, they are entitled to appeal the charge.
7.18 Any debt recovery action relating to the charge/s in question will be suspended whilst
the appeal process takes place, although ECC will continue to generate the charge
until a decision regarding the charge/s in question has been reached.
7.19 If an appeal is not upheld (that is, the charge/s is ruled to be accurate), appropriate
debt recovery action will be reinitiated. If an appeal is upheld (that is the charge/s is
ruled as inaccurate), the charge/s in question will be recalculated and the account reissued.
7.20 All appeals will be dealt with in accordance with the Council’s published appeals
process.
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Appendix A
National and local policy, legislation and regulations
Legislation
National Assistance Act 1948
Health Services and Public Health Act 1968 (subject to LAC(93) 10)
Chronically Sick and Disabled Persons Act 1970
Race Relations Act 1976
National Health Services Act 1977
Health and Social Services and Social Security Adjudications Act 1983
Mental Health Act 1983
Disabled Persons (Services Consultation and Representation) Act 1986
National Health Service and Community Care Act 1990
Carers (Recognition and Services) Act 1995
Human Rights Act 1998
Data Protection Act 1998
Health Act 1999
Race Relations Amendment Act 2000
Local Government Act 2000
Care Standards Act 2000
Freedom of Information Act 2000
Health and Social Care Act 2001
Local Government Act 2003
Community Care (Delayed Discharges etc.) Act 2003
Mental Capacity Act 2005
Disability Discrimination Act 1995 as amended by the Disability Discrimination Act 2005
The Carers (Equal Opportunity) Act 2004
Equalities Act 2006
Safeguarding Vulnerable Groups Act 2006
Mental Health Act 2007
Policy and Guidance
The New Performance Framework for Local Authority and Local Authority Partnerships
(2007)
Building on Progress Public Services (2007)
Putting People First (2007)
Strong and Prosperous Communities: Local Government White Paper (2006)
Our Health, Our Care, Our Say: a new direction for community Services (2006)
Independence Well-being and Choice (2005)
Improving the Life of Disabled People (2005)
Fairer Access to Care Guidance (2002)
Valuing People (2001)
National Service Framework for Older People
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Adults, Health & Community wellbeing
A Stronger Local Voice
National Carers Strategy
Independent Living Strategy
Independent Living (1983) Fund
Code of Practice for the Mental Capacity Act 2005
Fairer Charging Policy for home care and other non-residential social services: Guidance
for Councils with social services responsibilities (Department of Health)
Essex County Council Financial regulations
Essex County Council Charging Policy
Essex County Council Self-Directed Support Strategic Policy
Essex County Council Fair Access to Care Services Policy and Guidance
Local Authority Circulars
LAC (2008) 1 Transforming Social Care
LAC (2004) 24 Community Care Assessment Directions
LAC (2003) 14 Changes to Local Authorities Charging Regime for community equipment
and intermediate care services
LAC (2001)32 Fairer Charging Policies for Home Care and Other non-residential Social
Services - Guidance for Councils with Social Care Responsibilities
LAC (2001) 6 Better Care Higher Standards
LAC (93) 7 Ordinary Residence
LAC (93) 10
LAC (92) 15 Social Care for Adults with Learning Disabilities
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