Bolton Council revealed through a Freedom of Information request that it does include the daily living component of Personal Independence Payment (PIP) when assessing how much an individual must pay towards their care. In practice, this means people hand back part of their benefit to the Council, leaving them struggling to cover the costs of adaptations and assistance that help them manage their condition.
Personal Independence Payment – what is it meant for?
Personal Independence Payment can be given to help people with the additional cost of living, and for some working, with a long-term physical or mental health condition or disability, for the extra costs needed to help them manage. These additional costs can range from higher utility bills, to mobility aids, to specialist diets, or support with personal care. Unlike means-tested benefits, PIP is not awarded on the basis of savings or income but on how an individual’s condition affects their daily life. It is divided into two sections – daily living component and mobility component – and can be the difference between relying on friends and family or managing independently.
In theory PIP should provide a person financial stability – people who claim PIP face the prospect of having their financial situations evaluated to decide how much money they have to pay personally towards their care and how much the state will contribute.
How Bolton Council uses PIP in assessments
Bolton Council has admitted that twenty residents who receive the daily living component of Personal Independence Payment (PIP) are required to contribute towards so-called “means-tested” charges for their care. In practice, this means that the very benefit designed to help them cope with the extra costs of disability is factored into the local authority’s financial assessments, reducing the amount of support they receive.
This undermines the spirit of PIP, which was introduced precisely so disabled people could maintain a degree of independence. For those affected, it can feel less like a benefit and more like a revolving door, where money arrives from central government only to be reclaimed by the local authority.
Disability Related Expenses and the court
Charities such as Carers UK underline how important it is to consider accounting for disability-related expenses (DRE) when finances are being reviewed. DRE is not a payment, but a possible deduction that can be taken from the amount individuals have to pay towards their own adult social care. The Charity found that if higher levels of DRE are decided, the amount charged for adult care services by Local Authorities could be lowered.
In 2024, Bolton Council faced a challenge in the High Court by a person needing care in Bolton who accused the Council of not assessing his DRE when they decided how much he had to contribute for his care. Judge Fordham found that Bolton council had applied a restrictive policy that excluded certain expenses, such as travel costs and lunch for his personal assistant, unless they were explicitly listed in the care plan. Further noting that the Local Authority had violated “its basic public law duty to ask the legally correct question,” the Judge emphasised that decisions must be retaken lawfully and with proper consideration of individual needs. The Council was ordered to reassess the case and pay legal costs.
This ruling underlined that local authorities cannot enforce a sweeping policy; they must take into account each applicant’s unique situation.
What the law permits
The Care Act 2014 governs how local authorities must handle financial assessments for social care. While it does allow them to consider disability benefits such as PIP, this is conditional: authorities must ensure claimants retain enough to cover their disability-related costs.
Statutory guidance accompanying the Act – also cited in the 2024 High Court ruling – is explicit:
“Where disability-related benefits are taken into account as income, the local authority should make sure that appropriate amounts are allowed to cover disability-related expenditure.”
Summarising the position – welfare benefits, such as Personal Independence Payment, and particularly the daily living component, may be taken into account in a financial assessment. However, any portion of these payments that support people with disabilities should be ‘disregarded’ and not treated as ‘income’ when decisions are made about how much a person should contribute towards their care and assistance.
Why this matters
Bolton Council’s admission that it still counts PIP in financial assessments, despite its High Court defeat, is worrying. Arguably the authority risks exposing itself to further legal action by:
- continuing to treat PIP as income without properly considering DRE,
- applying uniform policies rather than tailoring assessments, and
- failing to communicate clearly with residents about their rights.
Such practices could be challenged by the Local Government Ombudsman, under the Equality Act 2010 for failure to make reasonable adjustments, or through further judicial review proceedings.
Looking forward
As criticism grows stronger over how local authorities are enforcing the policies of charging for social care, the method of the Local Authority in Bolton may continue being challenged by legal and popular opinion, particularly in the context of the High Court judgment in 2024.
The Local Authority should demonstrate how it makes sure that the rights of disabled members of the community are safeguarded, and fair evaluations that defend the foundation, fundamentals, and doctrines of the Care Act 2014.
