Has anyone had any success challenging the capping of direct payments for people 65+ at the residential care rate? A colleague mentioned a precedent which may allow this to be challenged, but I am unable to find it. Any help would be greatly appreciated.

Assume you mean adult services 'direct payments' under community care legislation. If so, not sure that it's a benefit query, but will leave that to Shawn. Without further information it is impossible to give advice, but a very good legal textbook which covers this area is L Clements:- Community Care and the Law. LAG.

I'm also unsure as to whether this is strictly a "benefits" issue, but as rightsnet deals with Tax Credits (which are definitely not "benefits"), and I for one feel direct payments and personal budgets are impacting on a whole raft of benefits-related issues, then here goes:-

My understanding is that the level of direct payments is set by a Local Authority via Guidance to the Community Care (Direct Payments) Act 1996 (accounting and financial management guidelines 1998) and produced by Chartered Institute of Public Finance and Accountancy (CIPFA).

There are many cases of insufficient level of payment to cover actual cost of care (especially when elements of cost such as training the carer etc are routinely ignored in the CIPFA calculation). These decisions are challengeable via the LA Complaints procedure in the usual way. Whilst a complaint is being heard, the SU can agree to the (reduced) DP or refuse the (reduced) DP, without prejudicing the outcome.

I am not personally aware of a case regarding the capping at resi care rate.

Not sure if this helps.

If I understand you correctly the local authority sets a maximum amount it will pay any person via direct payments. This is essentially the same issue as setting a maximum amount of home care that it will provide irrespective of someone's circumstances. I would have thought there would be some mileage in seeking advice regarding a potential JR for 'fettering its discretion'.