Summary: Mr X complains the Council agreed to an increase in Mrs Y’s care home charges without notice, causing her financial loss and putting him to time and trouble. The Ombudsman finds the Council at fault in its handling of Mrs Y’s care charges causing injustice. The Ombudsman recommends the Council provides a refund to Mrs Y, pays Mr X £100 for time and trouble and takes action to prevent recurrence.

The complaint

1. Mr X complains the Council increased Mrs Y’s care home charges without notice, causing her financial loss and putting him to time and trouble.

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The Ombudsman’s role and powers

2. We investigate complaints about ‘maladministration’ and ‘service failure’. In this statement, I have used the word fault to refer to these. We must also consider whether any fault has had an adverse impact on the person making the complaint. I refer to this as ‘injustice’. If there has been fault which has caused an injustice, we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
3. If we are satisfied with a council’s actions or proposed actions, we can complete our investigation and issue a decision statement. (Local Government Act 1974, section 30(1B) and 34H(i), as amended)

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How I considered this complaint

4. I spoke to Mr X and I reviewed documents provided by Mr X and the Council. I gave Mr X and the Council the opportunity to comment on a draft of this decision and I considered the comments provided.

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What I found

Care charges

5. Where a council arranges care and support to meet a person’s needs, it may charge the adult for this care.
6. Where a council has decided to charge and undertaken a financial assessment, it should support the person to identify options of how best to pay any charge. This may include offering the person a deferred payment agreement.
7. The approach to charging for care and support needs should be clear and transparent, so people know what they will be charged.

Deferred payment agreements

8. A council can agree to defer the payment of charges due to it from the service user for the costs of meeting their needs in a care home.
9. Usually the council will pay the care home directly and then defer the charges due to it from the individual.

What happened

10. In February 2018 the Council assessed Mrs Y and decided she needed residential nursing care.
11. Mr X has Power of Attorney over Mrs Y’s finances. He contracted with a care home on behalf of Mrs Y, who at that time was understood to be self funding her care. Mrs Y entered the care home on 12 March 2018.
12. Mr X says the care provider was to give him 28 days’ notice of any price increase.
13. Mrs Y’s capital reduced and so Mr X asked the Council to carry out a financial assessment.
14. In June 2018 the Council entered into a deferred payment agreement with Mrs Y and took over funding the placement effective from 12 March 2018. The Council says it initially paid the care home £938.81 per week.
15. The Council has not provided a copy of any contract agreed with the care home at this time. Or any evidence it told Mr X how it would deal with any price increases.
16. In July 2019 the care provider told the Council their rates had increased to £998 per week from 1 April 2019.
17. The Council has provided a copy of its contract with the care provider, signed by the Council in July 2019, which shows it agreed to pay the care provider £998 per week from 1 April 2019.
18. The Council then told Mr X of the price increase.
19. In November Mr X complained to the Council that it was negotiating Mrs Y’s contract and fees without his knowledge. He had received no notice of the price increase as expected.
20. The Council told Mr X the care provider had since apologised for not giving him 28 days’ notice and it would in future. The Council also apologised for not discussing the price increase with him and in future it would contact him before agreeing the contract.
21. Mr X complained again as he felt the response was inadequate. He had not agreed to the price increase imposed on Mrs Y.
22. The Council repeated the care provider should have told Mr X about the price increase and it had already apologised. It said the fees increased because Mrs Y’s needs increased and it told Mr X as soon as it knew.
23. (I note there is nothing in the documents provided to suggest the fees increased because Mrs Y’s needs increased. Rather this appears to have been a standard annual increase in the care provider’s fees).
24. In response to enquiries the Council says it has reviewed its decision making and notes it did not have a contract in place with the care provider until July 2019. Taking this into account it offers to refund the increase in charges from 1 April 2019 up to the date it informed Mr X of the increase plus 28 days’ notice. This amounts to £1120.95.
25. The Council explains a care provider should inform it of any price increase. It will then decide whether to fund the increase and inform Mr X of its recommendations. The care provider has since agreed to give Mr X 28 days’ notice of any price increase.

Findings

26. The Council agreed to fund Mrs Y’s care home placement subject to a deferred payment agreement from 12 March 2018. However, the Council did not enter into a contract with the care provider until July 2019. This amounts to fault.
27. The Council did not give Mr X any information about how it would deal with price increases, including details of any notice, at the start of the contract or at all. This amounts fault.
28. The Council told Mr X of a price increase three months after it had taken effect and expected payment for such. However, Mr X had not agreed to a price increase. This amounts to fault.
29. I note the Council has offered to provide a refund to Mrs Y to cover the price increase up to the date Mr X should have received adequate notice. I consider this is a suitable remedy for Mrs Y. However, Mr X has also been put to time and trouble in seeking to resolve this.
30. I also note the Council has taken action to ensure Mr X receives notice in future. However, I consider the Council needs to ensure it provides clear information on how price increases will be dealt with to all service users at the outset.

Agreed action

31. To remedy the injustice set out above I recommend the Council carry out the following actions:
32. Within one month:
• Provide Mrs Y with a refund for the increase in charges as offered;
• Pay Mr X £100 for time and trouble.
33. Within three months:
• Take action to ensure it routinely enters into a written agreement with any care provider at the start of a placement;
• Take action to ensure it routinely informs service users how it will deal with price increases before entering into a contract with a care provider;
• And inform the Ombudsman of the actions taken.
34. The Council has accepted my recommendations.

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Final decision

35. I find the Council at fault in its handling of Mrs Y’s care charges. The Council has accepted my recommendations and I have completed my investigation.

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Investigator's decision on behalf of the Ombudsman