Nicholas Bevan examines the extent to which local authority funded care affects personal injury awards
It is well established that where it can be shown that a claimant will continue to receive what is effectively free local authority provision then this should be taken into account when assessing that claimant’s net claim for future care. This was accepted by both parties as non controversial in Sowden v Lodge; Crookdale v Drury [2004] EWCA Civ 1370, [2005] 1 All ER 581.
Local authorities have a duty to recover the outlay incurred in the exercise of their statutory duties under the National Assistance Act 1948 (NAA 1948), ss 21 and 29. However, the effect of the various statutes, regulations and ministerial guidance on this topic is that they must disregard for means assessment purposes any award for personal injuries held within personal injury trusts or administered by the court. So unless a claimant blithely accepts a lump sum award without placing it in a personal injury trust, the local authority is required to disregard the existence of often substantial capital
