Ombudsman investigation sees council agree to waive £15k in care charges

The Local Government and Social Care Ombudsman has found the London Borough of Barking and Dagenham at fault for failing to complete a capacity assessment of a woman, and failing to keep her and her mother “suitably informed” about care charges.

Following the watchdog’s investigation, the council has agreed to waive the full outstanding balance owed by the woman totalling £15,339.64 for her client care contributions for the period March 2020 to December 2022.

Outlining the background to the case, the Ombudsman said the complainant, Ms X, complained that the council billed her daughter (Ms Y) for £20,000 in care charges for the time she spent in supported living from 2015 to 2022.

Ms X said her daughter cannot manage her own finances and that the council failed to tell Ms X about the care charges.

Ms X also complained that the council gave Ms Y a grant but because the council did not make either her or her daughter aware of it, the council reclaimed the grant as unused.

Looking at the initial period of charges, the Ombudsman said in 2015 the council completed a financial assessment of Ms Y’s charges for her supported living care.

The council completed the financial assessment and sent it to both Ms X and Ms Y confirming Ms Y’s client care contributions. A council support worker helped Ms Y set up a Standing Order to pay for her client care contributions.

The Ombudsman said: “The Council acted correctly in 2015 and I do not find fault.”

In November 2019, Ms Y stopped her Standing Order following moving out of her previous property. She did this because she was no longer receiving the care for which she was receiving the client care contributions.

The Ombudsman said: “All outstanding balance was settled to this point. Neither Ms Y nor the Council took any action causing issue at this time.”

However, the watchdog found the council at fault for failing to properly update Ms Y’s address on its billing system.

The report noted: “The Council was aware in 2019 that Ms Y had moved but only updated its Adult Social Care system and not its billing system, this was fault. This fault meant the Council sent any future billing to Ms X’s previous address.”

The council decided in 2019 that Ms Y had capacity to manage her own finances.

The Ombudsman said: “The Council assumed Ms Y had capacity despite its records showing that Ms Y showed certain behaviours to question whether she could manage her own finances. Ms X also told the Council in 2019 that Ms Y does not understand charges, cannot budget and was reckless with money.”

An application was made for a corporate appointee to help Ms Y manage her finances but this was withdrawn because it was unaffordable for Ms Y.

Following the Ombudsman’s investigation, the London Borough of Barking and Dagenham accepted fault for failing to complete a mental capacity assessment of Ms Y to decide if she could manage her own finances in 2019.

The watchdog concluded: “The result of the Council using the incorrect billing address meant that Ms Y only received the financial assessment letters once per year in 2020, 2021 and 2022 but none of the billing. Given that Ms Y could not understand how to manage her own finances, these financial assessment letters would not have been useful information for her. The Council also failed to follow up the unpaid charges with Ms Y meaning she would have been unaware of money owed to the Council.

“Following Ms X’s request in 2023 for the Council to send communication to her about Ms Y’s financial matters, the Council failed to make any contact until January 2024 to advise about the outstanding balance owed for the charges from March 2020 to December 2022. This was fault.”

To remedy the injustice caused, the council offered to waive the full charges from March 2020 to December 2022 totalling £15,339.64.

The council also agreed to apologise to Ms X for delays in confirming the care charges owed from January 2023 to June 2023, and offer a payment arrangement to repay this balance owed.

A spokesperson for the London Borough of Barking and Dagenham said: "Having considered the Ombudsman’s decision, we have looked at the case in detail and accept the Ombudsman’s decision without reservation. Accordingly, we have reviewed all of our processes and practices to ensure that this situation will not be repeated in future.”

Lottie Winson