Financing & Funding | Statutory Routes

Find the duty first. Then build the funding around the person.

Local-authority social care, NHS Continuing Healthcare and Section 117 aftercare are governed by different tests. The right route depends on the person’s needs, legal status and required outcomes—not on which organisation answers the telephone first.

One Person
Several Duties
Local AuthorityEligible social-care needs
NHSPrimary health need
Section 117Qualifying aftercare
Choose The Correct Starting Point

The same support task can sit within a different legal route

Do not classify funding solely by diagnosis, setting or service name. Ask why the support is required, what outcome it achieves and which body has the legal responsibility to arrange it.

Assessments can run in parallel. A person should not be left without safe interim support while the council and NHS decide how responsibility is divided.
Care Act

Difficulty Achieving Everyday Outcomes

Needs arise from physical or mental impairment or illness and affect wellbeing through specified daily-life outcomes.

Needs Assessment

NHS CHC

Possible Primary Health Need

The totality of needs may go beyond what a local authority can lawfully provide as social care.

Checklist / Full Assessment

Section 117

Qualifying Mental-Health Aftercare

The person left hospital after detention under a qualifying Mental Health Act provision and requires relevant aftercare.

Aftercare Planning

Joint

Health And Social-Care Responsibilities

Different assessed elements may properly be commissioned or funded by different statutory bodies.

Written Division

Three Tests, Three Purposes

Do not collapse distinct rights into one generic funding conversation

Each route has a different gateway, charging position and responsible decision-maker.

Local Authority

Care And Support

The council assesses needs and eligibility, agrees how eligible needs will be met and prepares a personal budget.

GatewayCare Act needs and national eligibility criteria.
ChargingMany services can be means-tested after a financial assessment.
OutputCare and support plan, personal budget and contribution decision.
NHS

Continuing Healthcare

The Integrated Care Board assesses whether the adult has a primary health need requiring an NHS-funded package.

GatewayNature, intensity, complexity and unpredictability of needs.
ChargingCHC is not means-tested.
OutputEligibility decision and commissioned care package.
Section 117

Mental-Health Aftercare

The responsible NHS body and local social services authority jointly arrange qualifying aftercare following specified detention.

GatewayLegal detention history plus qualifying aftercare need.
ChargingCovered aftercare services are provided free of charge.
OutputJointly planned and reviewed aftercare arrangements.
The Local-Authority Route

From first contact to an accountable personal budget

A financial assessment must not replace the needs assessment. First establish what eligible support is required; then determine any lawful contribution.

01

Request Assessment

Anyone can ask the council to assess an adult who appears to need care and support.

The needs assessment itself is free.

02

Describe Outcomes

Record what the person cannot achieve, the impact on wellbeing and existing unpaid support.

Include fluctuating and foreseeable needs.

03

Decide Eligibility

The council applies the national criteria and gives a written decision.

Non-eligible needs still require information and advice.

04

Plan Support

Agree how eligible needs and desired outcomes will be met.

Involve the person and advocate where required.

05

Set The Budget

The personal budget identifies the cost to the council of meeting needs.

It must be sufficient for the agreed plan.

06

Review Delivery

Check whether the plan remains effective, safe and proportionate.

Request an earlier review when needs change.

A council-managed service, an individual service fund, a direct payment or a mixed arrangement may be used. The mechanism changes control and administration; it does not remove the duty to meet eligible needs.
The NHS Continuing Healthcare Route

Look at the totality of need—not the diagnosis label

CHC eligibility is not awarded because a person has a particular diagnosis, lives in a particular setting or requires an expensive package. The question is whether the characteristics and interaction of their needs demonstrate a primary health need.

The Decision Support Tool supports professional judgement; it is not a points calculator. Well-managed needs are still needs. Evidence should show what intervention prevents deterioration and what would happen without it.
Nature

What The Need Is

The type, effect and quality of the need, including the intervention required to manage it.

Intensity

Quantity And Severity

The degree, frequency and continuity of support, including sustained care demands.

Complexity

Interaction Of Needs

How symptoms, risks and interventions combine and require skill to manage.

Unpredictability

Change And Response

How difficult fluctuations are to anticipate and the consequences of delayed or inadequate response.

Section 117 Aftercare

A joint statutory duty—not a discretionary funding favour

Section 117 applies after a person leaves hospital following detention for treatment under specified Mental Health Act provisions. The responsible NHS body and local social services authority must arrange aftercare until they are jointly satisfied it is no longer required.

Covered aftercare is free of charge. The key question is whether the service meets needs arising from or related to the mental disorder and reduces the risk of deterioration or readmission. Not every accommodation, household or unrelated care cost is automatically aftercare.
Eligibility Trigger

Confirm The Legal Route

Check the detention provision and discharge history. Qualifying routes include detention under sections 3, 37, 45A, 47 or 48 before leaving hospital.

Purpose Test

Define Each Aftercare Need

Link every proposed service to mental-health needs and the prevention of deterioration or readmission.

Joint Planning

Name Both Responsible Bodies

Record who commissions, funds, monitors and authorises changes to each part of the aftercare plan.

Ending The Duty

No Automatic Expiry

Moving area, entering hospital again or appearing stable does not by itself end the duty. Discharge requires the relevant authorities’ joint decision.

Where Duties Meet

A mixed package needs clear borders—without gaps

One provider may deliver several types of support, but the statutory bodies should still identify the legal basis and payment responsibility for each commissioned element.

NHS Responsibility

Health-Led Elements

Examples may include CHC-funded care, specialist clinical input, healthcare equipment or treatment responsibilities.

State the assessed health need and clinical oversight.
Identify the ICB commissioner and package review route.
Separate CHC from the more limited FNC contribution.
JOINT PLAN
ONE PERSON
Section 117 changes the charging analysis for qualifying aftercare. A service should not be charged merely because it resembles ordinary social care if, in that individual case, it is required as Section 117 aftercare. Equally, the label “Section 117” does not make every unrelated cost free.
Make Responsibility Visible

Four names every plan should contain

When roles are vague, reviews stall and providers receive conflicting instructions.

LA

Responsible Council

Name the social-work lead, team, funding panel route and finance contact.

Confirm ordinary-residence or statutory responsibility rather than assuming the placement address decides it.

ICB

Responsible NHS Body

Name the CHC, mental-health or commissioning lead and the relevant decision forum.

Responsibility should follow the applicable NHS “Who Pays?” rules.

CP

Care Co-ordinator

Identify who brings the multidisciplinary information together and tracks agreed actions.

This role does not replace each organisation’s legal accountability.

PR

Person Or Representative

Record capacity, advocacy, attorney, deputy, suitable person or other lawful involvement.

Provide accessible information and support genuine participation.

Build An Auditable Package

Every funded pound should connect to an assessed outcome

A robust proposal explains the need, intervention, staffing, frequency, evidence, responsible funder and review trigger.

Core Support

Shared And Background Staffing

Explain availability, planned interventions, communal support, overnight arrangements and how staffing safely serves more than one person.

Individual Hours

One-To-One Support

Link hours to named tasks, risks, outcomes and an evidence-based weekly pattern.

Overnight

Sleep-In Or Waking Night

Use recorded need and response requirements; do not choose by label or price alone.

Clinical

Health Input

State practitioner, frequency, delegation, monitoring and escalation responsibility.

Housing

Rent And Housing Costs

Keep housing liability distinct from care and support, especially in supported living.

Contingency And Review

What Happens When Need Changes?

Agree interim authority, emergency cover, evidence thresholds, funding review timing and how reductions or increases are implemented.

The Evidence Vault

Collect information that explains consequences—not just incidents

Good evidence connects presentation, intervention and outcome. A calm week may demonstrate effective support rather than absence of need.

Avoid copying identical phrases across documents. Decision-makers need consistent facts seen from different professional perspectives, including the person’s own account.
Daily EvidenceSupport Records And ABC Charts

Frequency, duration, triggers, staff response and outcome.

Clinical EvidenceReports, Reviews And Medication

Diagnosis, formulation, treatment, side effects and monitoring.

Risk EvidencePlans, Incidents And Near Misses

Likelihood, consequence and the controls preventing harm.

Functional EvidenceWhat The Person Can Reliably Do

Consider prompting, supervision, fluctuation and sustainability.

Legal EvidenceDetention And Aftercare Documents

Section history, tribunal or discharge conditions and Section 117 plans.

Financial EvidenceCosted Weekly Proposal

Hours, rates, shared allocation, on-costs and review assumptions.

When A Decision Does Not Fit

Challenge the reasoning, not simply the outcome

Use the route belonging to the organisation and decision concerned, while protecting immediate safety.

01

Request The Record

Obtain assessment, eligibility reasoning, tool, minutes, cost calculation and decision letter.

Check factual errors and missing evidence.

02

Seek Clarification

Ask which test was applied, who decided and how conflicting evidence was resolved.

Set a clear response date.

03

Request Review

Use the council review or complaint route, CHC local resolution or the relevant Section 117 process.

Submit focused supporting evidence.

04

Escalate Properly

Consider the appropriate ombudsman, NHS review mechanism, advocacy or specialist advice.

Different bodies examine different failures.

05

Protect The Person

Agree interim support and record unmanaged risk while the funding dispute continues.

A boundary dispute should not become a care gap.

Statutory Funding FAQs

Answers across the three routes

These answers explain the framework in England. Individual responsibility depends on assessment, legal history, ordinary-residence and NHS commissioning rules.

Preparing A Funding Proposal?

Bring the assessments, legal status, weekly support model, cost breakdown and the decisions already received. The gaps can then be identified precisely.

Discuss A Referral →

Can someone request a Care Act needs assessment even if they have savings?
Yes. The needs assessment is separate from the financial assessment and is available regardless of income or capital. A person may be required to pay the full cost after financial assessment, but the council should still identify needs and provide relevant information and advice.
Does a diagnosis automatically qualify someone for NHS Continuing Healthcare?
No. CHC eligibility is not diagnosis-led. The multidisciplinary assessment considers the totality of need, including its nature, intensity, complexity and unpredictability, to decide whether the person has a primary health need.
Is NHS Continuing Healthcare means-tested?
No. Financial resources do not determine CHC eligibility. If eligible, the NHS is responsible for funding an appropriate package to meet the assessed health and associated social-care needs.
Who qualifies for Section 117 aftercare?
Section 117 applies to a person who ceases to be detained and leaves hospital after detention for treatment under specified Mental Health Act provisions, including sections 3, 37, 45A, 47 or 48. The precise legal history should be confirmed from the detention and discharge records.
Is all support free once someone has Section 117 status?
No. Services falling within the statutory meaning of aftercare must be provided without charge. These are services meeting needs arising from or related to the person’s mental disorder and reducing the risk of deterioration or readmission. Other unrelated care, housing and ordinary living costs require separate analysis.
Can Section 117 end because the person moves to another council area?
No. A move does not itself discharge the duty or automatically transfer responsibility. The responsible bodies must be identified under the applicable legal rules, and the aftercare duty continues until the relevant NHS body and local social services authority are jointly satisfied it is no longer needed.
Can local-authority and NHS funding be combined?
Yes. A joint package may divide responsibility for different assessed needs. The written plan should identify each funded element, commissioner, amount, payment mechanism, review route and contingency. Section 117 elements require their own charging analysis.
What if the council and NHS disagree about who should pay?
Ask both organisations to use their formal dispute-resolution arrangements and to identify safe interim responsibility. The person should not be left without assessed support while organisational boundaries are resolved. Record the needs, risks, proposed package and each body’s stated reasoning.
Can a funded package be reduced at review?
A review can lead to change, but the decision should be based on current assessed need and lawful criteria. Stability may reflect successful support rather than reduced need. Request the evidence, reasoning, revised risk analysis, implementation date and contingency before a reduction takes effect.
What if the person cannot participate in the assessment?
The assessor should provide accessible communication and take all practicable steps to support involvement. Depending on the circumstances, a family member, appropriate representative, independent advocate, attorney or deputy may be involved. Mental capacity is decision-specific and should not be assumed from diagnosis.
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Personal Budgets & Direct Payments

Continue to budget control, managed accounts, direct payments, employing personal assistants, record-keeping and combining purchasing options.

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Important: General information for England only; not legal or financial advice. Official reference points include the NHS guides to care needs assessments, NHS Continuing Healthcare and personal budgets, the Government’s Care and Support Statutory Guidance and National CHC Framework, and Section 117 of the Mental Health Act 1983. Responsibility and eligibility require case-specific confirmation.