Dla reform and Personal Independence Payment – completing the detailed design

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Hospital and care home residents

4.8 Sections 85 and 86 of the Act provide powers to make regulations concerning the payment of Personal Independence Payment in care homes and hospitals. Section 85 sets out that residents of care homes will not be paid the daily living component if any of the ‘qualifying services’ (defined in subsection (4)) they receive are met from public or local funds by virtue of a specified enactment. Regulations will specify these enactments.

4.9 Section 86 sets out that neither the daily living component nor the mobility component will not be payable to persons undergoing medical or other treatment as an in-patient at a hospital or similar institution when any of the costs of the treatment, accommodation or any related treatment are met from public funds. Regulations will determine whether these costs are met from public funds.

4.10 We propose that Personal Independence Payment follows the approach taken by DLA and AA in relation to residency in care homes and in-patient care in hospitals.

4.11 Under these rules, payment of AA or the DLA care component stops after 28 days for residents of care homes but any mobility component continues to be paid to eligible residents.

4.12 Payment of AA and both the care and mobility components of DLA stop after 28 days for in-patients of a hospital or similar institution. The primary intention of these provisions is to prevent the duplication of funding that would otherwise arise if these disability-related benefits were paid at the same time as those costs were being met from public or local funds.

4.13 Payment is made for the first 28 days to pay for any continuing costs and to avoid a break in the claim during short periods of hospitalisation or respite care.

4.14 Those affected by these rules remain entitled to the benefit and payment resumes when they leave the care home or hospital and continue to satisfy eligibility conditions.

Existing transitional protection arrangements

4.15 Although the payability principles for hospital in-patients in DLA are broadly being carried over into Personal Independence Payment, we do not propose to retain any transitional protection arrangements which apply to DLA. DLA regulation 12B provides that when the current rules applying to mobility component in hospital were enacted in 1996, people who had been in hospital for at least a year, and since then have not spent longer than 28 continuous days out of hospital, can continue to receive the lower rate of mobility component whilst in hospital. Although Personal Independence payment is a successor to DLA, it is a new benefit and everyone will be subject to re-assessment, in addition the remaining people benefiting from this provision have had a significant period to adjust to the new rules. We do not therefore think it is appropriate to carry over this transitional protection to the new benefit.

Extension of benefit payment to Motability customers

4.16 Similarly, the extension which applies to DLA Motability leaseholders will not be carried over into Personal Independence Payment. This is because we intend to withdraw this extension in DLA and it is reasonable that the same approach is taken in Personal Independence Payment. This is discussed in more detail in the section “Changes to certain DLA & AA rules” below.

Question 11

Do you have any views on our proposal to take forward into Personal Independence Payment the approach taken by DLA and AA in relation to residency in care homes and in-patient care in hospitals?

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