August 2021 – Blanket Charges for Administering Care Packages
The Local Government and Social Care Ombudsman has found a local authority acted outside statutory guidance in applying a blanket charge to cover its administration costs for managing a care package.
A complaint was made to the Ombudsman by a man after the London Borough of Bexley increased the amount it charged him in administration costs for it to manage the domiciliary care package received by his mother. The cost had risen from £260 per year to £793 per year.
The increase was the result of the council switching from charging a flat rate for the service to charging everyone 6.1 per cent of the care and support package received by an individual. After discussions, the council accepted that those with larger packages were paying more than the actual costs it incurred and proposed a new policy based on a banded system.
However, the Ombudsman stated that the council needs to put in place a system that is fair to all and ensure the new charging policy is in line with government guidance.
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