Can anyone help me with this issue. I keep hearing that it is impossible for clients who are in any kind of residential accommodation where they receive any kind of care to work.

Apparently, if they do work they are expected to pay for their own care, obviously this makes work financially very unbeneficial. But why should this be so, I had understood that earnings are supposed to be disregarded?

Can anyone help me understand this please?

Someone in residential care funded by Social Services is subject to the charging regime detailed in the Charging for Residential Accommodation Guide (CRAG). Current version available here:
http://www.dh.gov.uk/en/Policyandguidance/Organisationpolicy/Financeandplanning/Residentialcare/index.htm
(it's a 1 meg PDF).

Treatment of earnings is in Section 9 and basically follows IS rules and disregards but with no 16 hour limit.

So there is no formal restriction on working but in practice all someone will gain is the usual £20pw - everything over this will have to be paid to Social Services in additional charges. Whether that would mean a person paying for the whole of their residential care will depend on whether their earnings, and any other income, exceed their costs.

Earnings should be entirely disregarded in the calculation of charges for non-residential care provided by Social Services, under the DH's 'Fairer Charging' guidance. This doesn't apply to residential care.

CRAG rules are compulsory - LA's have to follow them (S.22, National Assistance Axct 1948). The only flexibility allowed is that LA's can allow an enhanced personal alowance under S.22(4). There would be a good case for a modestly enhanced personal allowance for someone in residential care trying to work but no chance of a complete disregard of earnings.

All this only applies to residential care. In supported accommodation of various kinds shoud be charged for as non-residential care and earnings disregarded.

Richard Atkinson

Thanks Richard that's very comprehensive and prompt