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(1) These Regulations may be cited as the National Assistance (Residential Accommodation) (Additional Payments and Assessment of Resources) (Amendment) (England) Regulations 2001, and shall come into force on 24th October 2001.
(2) These Regulations extend to England only
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(1) In these Regulations—
 “the 2001 Act” means the Health and Social Care Act 2001;
 “the Act” means the National Assistance Act 1948;
 “the Assessment Regulations” means the National Assistance (Assessment of Resources) Regulations 1992;
 “the Directions” means the National Assistance Act 1948 (Choice of Accommodation) Directions 1992;
 “lower capital limit” means the lower of the two capital amounts specified in regulation 28 of the Assessment Regulations;
 “preferred accommodation” means Part 3 accommodation at the place of the resident’s choice within England and Wales as indicated by the resident, in accordance with paragraph 2 of the Directions;
 “relevant liable relative” means a person who is liable under section 42 of the Act to maintain the resident and is making maintenance contributions;
 “relevant preferred accommodation” means preferred accommodation which meets the conditions in paragraph 3(a), (c) and (d) of the Directions, but where the cost of providing the resident with that preferred accommodation would require the local authority to pay more than that authority would usually expect to pay in order to provide Part 3 accommodation suitable for a person with the assessed needs of that resident;
 “relevant resident” means a resident—
(a) to whom paragraph 1A of Schedule 4 to the Assessment Regulations (the twelve week property disregard) applies; or
(b) who has entered into, or agreed to enter into, a deferred payment agreement with the local authority, as provided for in section 55 of the 2001 Act; and
 “resident” means a person whom the local authority has assessed under section 47 of the National Health Service and Community Care Act 1990 as needing accommodation pursuant to section 21 of the Act (whether or not that person has become a resident in such accommodation).
(2) In these Regulations, unless the context otherwise requires, a reference—
(a) to a numbered regulation is to the regulation in these Regulations bearing that number; and
(b) in a regulation to a numbered paragraph is to the paragraph in that regulation bearing that number.
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(1) Regulation 4 applies if a resident has indicated that he wishes to be accommodated in relevant preferred accommodation.
(2) Regulation 4 does not apply to any arrangements made under paragraph 4 of the Directions prior to 1st October 2001.
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(1) A local authority shall provide a resident with relevant preferred accommodation in the following circumstances—
(a) if a third party other than a relevant liable relative agrees to make the additional payments; or
(b) in the case of a relevant resident, if it is agreed that the additional payments will be made by one or both of the following persons—
(i) a third party other than a relevant liable relative, and
(ii) the resident himself, from any resource or combination of resources specified in paragraph (2)
and each person can reasonably be expected to make those additional payments for the duration of the arrangements.
(2) The resources referred to in paragraph (1)(b)(ii) are—
(a) in the case of a resident who is a relevant resident by virtue of paragraph (a) or (b) of the definition of that term in regulation 2(1), any income or capital disregarded under Schedule 2, 3 or 4 to the Assessment Regulations, except capital disregarded under paragraph 1A of Schedule 4;
(b) in the case of a resident who is a relevant resident by virtue of paragraph (a) only of that definition, capital not exceeding the lower capital limit; and
(c) in the case of a resident who is a relevant resident by virtue of paragraph (b) only of that definition, any capital exceeding the lower capital limit, which may include the value of the resident’s property which he occupies or formerly occupied as his only or main home, provided that if any additional payments are to be made from the value of that property they will form part of the relevant contributions under the deferred payment agreement.
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(1) After regulation 16 of the Assessment Regulations, there shall be inserted the following regulation—“
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(1) An amount equivalent to any additional payments made or due to be made by a resident from resources specified in paragraph (2) shall be treated as part of the income of the resident.
(2) The resources specified for the purposes of paragraph (1) are the resources specified in regulation 4(2) of the National Assistance (Residential Accommodation) (Additional Payments and Assessment of Resources) (Amendment) (England) Regulations 2001 (additional payments from specified resources of relevant residents), except in a case falling within sub-paragraph (c) of that paragraph of that regulation where the additional payments are to be made from the value of the resident’s property which he occupies or formerly occupied as his only or main home.”
(2) After paragraph (3) of regulation 28 of the Assessment Regulations, there shall be inserted the following paragraph—“
(4) For the purposes of paragraph (1), where a resident makes additional payments as provided for in regulation 4(2)(b) of the National Assistance (Residential Accommodation) (Additional Payments and Assessment of Resources) (Amendment) (England) Regulations 2001 (additional payments from capital not exceeding the lower capital limit), the resident is to be treated as possessing capital equivalent to the amount of any additional payments.”
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The National Assistance (Residential Accommodation) (Additional Payments) (England) Regulations 2001 are hereby revoked.
Signed by authority of the Secretary of State for Health
Jacqui Smith,
Minister of State
Department of Health
19th October 2001