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England and Wales High Court (Administrative Court) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Administrative Court) Decisions >> Becker, R (On the Application Of) v Plymouth City Council [2022] EWHC 1885 (Admin) (20 July 2022) URL: http://www.bailii.org/ew/cases/EWHC/Admin/2022/1885.html Cite as: [2022] EWHC 1885 (Admin) |
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QUEEN'S BENCH DIVISION
ADMINISTRATIVE COURT
Strand, London, WC2A 2LL |
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B e f o r e :
____________________
THE QUEEN on the application of SARAH BECKER |
Claimant |
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- and – |
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PLYMOUTH CITY COUNCIL |
Defendant |
____________________
Mr David Carter (instructed by Legal Services, Plymourth City Council) for the Defendant
Hearing date: 23 June 2022
____________________
Crown Copyright ©
Mr Justice Lane :
A. SPECIAL GUARDIANSHIP: PRIMARY AND SECONDARY LEGISLATION
"(1) Each local authority must make arrangements for the provision within their area of special guardianship support services, which means –
(a) counselling, advice and information; and
(b) such other services as are prescribed,
In relation to special guardianship.
(2) The power to make regulations under subsection (1)(B) is to be exercised so as to secure that local authorities provide financial support.
…"
"6 Circumstances in which financial support is payable
(1) Financial support is payable under this Chapter to a special guardian or prospective special guardian—
(a) to facilitate arrangements for a person to become the special guardian of a child where the local authority consider such arrangements to be beneficial to the child's welfare; or
(b) to support the continuation of such arrangements after a special guardianship order is made
(2) Such support is payable only in the following circumstances—
(a) where the local authority consider that it is necessary to ensure that the special guardian or prospective special guardian can look after the child;
(b) where the local authority consider that the child needs special care which requires a greater expenditure of resources than would otherwise be the case because of his illness disability, emotional or behavioural difficulties or the consequences of his past abuse or neglect;
(c) where the local authority consider that it is appropriate to contribute to any legal costs including court fees, of a special guardian or prospective special guardian as the case may be, associated with -
(i) the making of a special guardianship order or any application to vary or discharge such an order;
(ii) an application for an order under section 8 of the Act;
(iii) an order for financial provision to be made to or for the benefit of the child; or
(d) where the local authority consider that it is appropriate to contribute to the expenditure necessary for the purposes of accommodating and maintaining the child, including the provision of furniture and domestic equipment, alterations to and adaptations of the home, provision of means of transport and provision of clothing, toys and other items necessary for the purpose of looking after the child.
…
13. Assessment and need for financial support
(1) This regulation applies where the local authority carries out an assessment of a person's need for financial support.
(2) In determining the amount of financial support, the local authority must take account of any other grant, benefit, allowance or resource which is available to the person in respect of his needs as a result of becoming a special guardian of the child.
(3) … The local authority must also take account of the following considerations
(a) the person's financial resources, including any tax credit or benefit, which would be available to him if the child lived with him;
(b) the amount required by the person in respect of his reasonable outgoings and commitments (excluding outgoings in respect of the child);
(c) The financial needs and resources of the child.
…"
B. STATUTORY GUIDANCE
"financial issues should not be the sole reason for a special guardianship arrangement failing to survive. The central principle is that financial support should be payable in accordance with the Regulations to help secure a suitable special guardianship arrangement where such an arrangement cannot be readily made because of a financial obstacle. Regulation 6 provides that financial support is payable to facilitate arrangements for a person to become the child's special guardian, where this is considered to be beneficial to the child's welfare, and to support the continuation of these arrangements after the order has been made."
"39. Payment of financial support under (b) is intended where the child's condition is serious and long-term. For example, where a child needs a special diet or where items such as shoes, clothing or bedding need to be replaced at a higher rate than would normally be the case with a child similar of age who was unaffected by the particular condition."
63. It is important to ensure that special guardians are helped to access benefits to which they are entitled. Local authorities should therefore endeavour to ensure that the special guardian or prospective special guardian is aware of, and taking advantage of, all benefits and tax credits available to them. Financial support paid under these Regulations cannot duplicate any other payment available to the special guardian or prospective special guardian and regulation 13 provides that in determining the amount of any financial support the local authority must take account of any other grant, benefit, allowance or resource which is available to the person in respect of his needs as a result of becoming a special guardian of the child.
64. When considering providing financial support the local authority will normally consider the special guardian or prospective special guardian's means and regulation 13 requires that the local authority consider:
(a) the special guardian or prospective special guardian's financial resources (which should include significant income from any investments, but not their home) including any tax credit or benefit, which would be available to him if the child lived with him. This is consistent with the fact that financial support for special guardians is disregarded for the purpose of calculating income related benefits and tax credits
(b) the amount required by the special guardian or prospective special guardian in respect of his reasonable outgoings and commitments, e.g. housing and transport costs, and daily living expenses (but not outgoings in respect of the child)
(c) the financial needs that relate to the child (e.g. because of special diet or need for replacement bedding) and the resources of the child (e.g. a trust fund)
65. In determining the amount of any ongoing financial support, the local authority should have regard to the amount of fostering allowance which would have been payable if the child were fostered. The local authority's core allowance plus any enhancement that would be payable in respect of the particular child, will make up the maximum payment the local authority could consider paying the family. Any means test carried out as appropriate to the circumstances would use this maximum payment as a basis.
66. Regulation 13 provides for when the local authority has discretion to disregard means and for when they must disregard them.
67. The local authority may disregard means where they are considering providing financial support in respect of:
- the initial costs of accommodating a child who has been looked after by the local authority— where a payment made is of the nature of a 'settling-in grant'. It is not expected that this payment would be means tested, but local authorities might for example, want to means test any contribution to an adaptation to the home
- recurring costs in respect of travel for the purpose of visits between the child and a related person with whom they have contact (or would have contact but for prohibitive travel costs) so that, for example, where the local authority wants to underline the value of and facilitate contact for the child with a sibling they can achieve this by not means testing payments to support this
- any special care referred to in regulation 6(2) (b) which requires a greater expenditure of resources than would otherwise be the case because of his illness, disability, emotional or behavioural difficulties, or the consequences of his past abuse or neglect in relation to a child who has previously been looked after by the local authority. This will allow local authorities to provide a financial package for a particular child to facilitate the making of a special guardianship order where they are considering including an element of remuneration in financial support payments to ex-foster carers - so that local authorities can maintain the amount paid to a foster carer who goes on to become a special guardian for the transitional period
68. The only circumstance in which the local authority must disregard means is when they are considering providing financial support in respect of legal costs, including fees payable to a court. This applies where a special guardianship order is applied for in respect of a child who is looked after by the local authority, and the authority support the making of that order, or an application is made to vary or discharge a special guardianship order in respect of that child."
C. THE DEPARTMENT'S MODEL
"STANDARDISED MEANS TEST MODEL FOR ADOPTION AND SPECIAL GUARDIANSHIP FINANCIAL SUPPORT"
Introduction
1. The Department for Education and Skills has developed a model means test for adoption and special guardianship financial support /The model has been tested with various local authorities and modifications made as a result.
2. Please note that this test is a suggested model only. It is not a /statutory requirement for local authorities to use this model in place of their existing system. However, we do recommend its use by local authorities, as we believe that the model developed is fair and that adoptive or special guardian families would benefit from a consistent approach by local authorities.
3. The model proposed is intended to deliver a standard approach to arriving at adoption support or special guardianship support payments (if not always a standard payment), so that adopters and special guardians are treated equitably within the context of what is affordable within existing local authority budgets.
4. For any queries about the model please contact the Adoption Team on [email protected].
Guidance on using means test model
General
5. The model is based on disposable income, and so provides a thorough analysis of the family's financial situation. Key principles of the test are set out in this section.
6. The regulations on adoption and special guardianship support services set out that there must be no reward element in financial payments other than as a transitional provision for foster carers adopting or becoming special guardians for a child for whom they are currently caring.
7. The overall approach used in the test is a snapshot of the family's current circumstances. By this, we mean that if the adopted or special guardian child is already living with the prospective adopters or adoptive parents/special guardian, then the child should be included in the calculations. If the child is not yet placed with the prospective adopters/special guardian, then the child should not be included in the calculations.
8. If a family is in receipt of Income Support, we recommend that the local authority pay the family the applicable maximum payment without assessing their income/expenditure in this test. The figure paid to the family should not include any deductions for child benefit (as they are in receipt of Income Support).
9. Financial support paid to adoptive parents or special guardians under the regulations cannot duplicate (or be a substitute for) any payment to which adopters or special guardians would be entitled under the tax and benefit system. We recommend that local authorities only include benefits that are currently being paid to members of the household. If the local authority believes that there are other benefits to which the household would be entitled, this should be pointed out to the adopters or special guardian. A reassessment after 3 months could then be made which would capture all of the new benefits being received. This could be the case where, for example, a child has recently been placed with the prospective adopters or special guardian, and they have not yet claimed child tax credits.
10. The test is currently worked out on a monthly basis. If local authorities prefer to use weekly figures, the model can be adapted for this.
PROJECTED FAMILY INCOME
Section 1i - Pay
11. This section should include basic net monthly pay, before any deductions for savings schemes social clubs, accommodation/food and loans. However, the income figure used should exclude any payments into pension funds.
12. Where one (or both) of the parents or special guardian is self-employed, the only income which should be considered is 'drawings' as this is the equivalent of pay from an employer. Any profit from the business sitting in a bank account (and thereby not being reinvested) should be taken into account as capital under section 1 iv: other sources of income.
13. If one (or both) of the parents or special guardian does receives overtime, fees, bonus/commission and/or gratuities on a regular basis (for example annual bonuses) should be included as part of the monthly payment (i.e. if the payments are annual these should be divided by 12 to give a monthly amount to be included in the 'basic net monthly pay' section). If local authorities are using weekly figures the extra income should be calculated on this basis.
Section 1ii Benefits and pensions (parents)
14. Where the parents or special guardian receive individual benefits (i.e. those that are not calculated on a household basis) these should be included in this section. If the benefit payments are currently received weekly, please multiply by 52 and divide by 12 to give a monthly amount. Benefits to be entered in this section are:
- Employer's sick pay (after compulsory deductions)
- Incapacity benefit
- Statutory maternity, paternity and/or adoption pay and/or maternity allowance
- Bereavement benefit
- Working tax credit (if paid directly and not as part of pay and excluding any childcare element received)
- All pension payments received
- Other benefits
15. In relation to working tax credit, our understanding is that an employed person currently receives working tax credit within pay from his employer. If this is the case, the amount will be included in the basic net monthly pay section. All those who receive working tax credit will receive an award notice which sets out how much they will receive. This award notice will provide the information needed for this section of the test.
16. Where a childcare element is paid as part of the working tax credit this should be disregarded for the income section of the test. The existence of this type of credit needs to be considered when completing the expenditure section on childcare (see below).
17. Any other benefits received by the parents, for example help with costs associated with disability or mobility, should be recorded in the 'other benefits' section.
Section 1ii - Benefits (family/children)
18. Where benefits are received by the family or household, as opposed to being paid directly to the parents, they should be recorded in this section. This is primarily for benefits which are calculated on the basis of composition. Benefits to be included in this section are:/
- Income Support
- Jobseeker's Allowance
- Child tax credit per household
- Child benefit for each child, excluding the child/children who are the subject of this assessment application
19. If a member of the household receives Income Support or Jobseeker's Allowance, the amount per household should be recorded here. Also see paragraph 8 above, where it is recommended that where the only income families receive is Income Support, the applicable maximum payment should be made to the family.
20. Benefits which should be included in this section are child tax credit received for each child, at the time that the test is applied. All those who received child tax credit should receive an award notice setting out how much they will receive.
21. Child benefit should be included for each child living in the household, excluding the child/children who are the subject of this assessment application. Current rates for child benefit can be found by clicking here.
22. Housing benefit should also be excluded from this section, as it is disregarded for the purposes of the expenditure section below.
Section 1iv — Other sources of income
23. Where the family receive income from capital, savings and/or investments, this should be assessed in terms of net monthly interest only, as paid. This is the income that is routinely available to the family, and should be clearly shown on statements/similar. Any interest received from Government Child Trust Funds should not be included in this section.
24. If the family receive income from boarders/lodgers, this should be calculated on a weekly basis (then multiplied by 52 and divided by 12 to give a monthly amount if the test is being completed on a monthly basis). To calculate the weekly income, ail weekly payments for board and lodging must be added together, a £20 disregard applied and then 50 per cent of any excess over £20 for each person deducted: This is how income from boarders/lodgers is calculated for income support purposes.
25. Examples of the approach for income from boarders/lodgers are as follows:
Boarder/lodger 1 | |
Weekly payment | £55 |
Deduct £20 (disregard) | -£20 |
£35 | |
Deduct 50% remainder | £17.50 |
Income from boarder/ lodger 1 | £17.50 |
Boarder/lodger 2 | |
Weekly payment | £60 |
Deduct £20 (disregard) | £20 |
£40 | |
Deduct | 50% |
Income from boarder/ lodger 2 | £20 |
26. Where the family receive income from rent on an unfurnished property, this should be calculated on the following basis: monthly income received in rent after the deduction of any costs. Deductions can be made for:
- Interest payments on the mortgage (but not mortgage capital payments);
- Repairs;
- Council tax (if paid by the family being assessed)
- Agents' fees; and
- Insurance (buildings)
27. If income is received from furnished properties, the same calculation applies as above for unfurnished property, but an extra 10% deduction from the monthly rent received can be made as a 'wear and tear allowance'.
28. The approach used in paragraphs 25 and 26 above is consistent with that used for calculating income from property for the purposes of income tax. If the person who is the subject of the assessment has completed a recent tax return, local authorities may ask to see a copy of this. The tax return should have the information needed for this section of the test.
29. Other income to take into consideration includes maintenance payments received for any child in the household and existing adoption or special guardian allowances (including enhancements for special needs) paid for any child. This latter may be paid where, for example, the family have adopted or become a special guardian for a child with a different local authority and therefore receive a separate allowance.
Section 1v - Income relating to the child/children being adopted or becoming a special guardian child
30. This section relates to the child/children being adopted or becoming a special guardian child only. Any regular interest on capital and/or income in which the child/children has a legal interest and entitlement should be included here. This could be, for example, a savings account, trust fund, property or other legacy.
31. Payments from Criminal Injuries Compensation Awards should not be included. Any interest received from Government Child Trust Funds should not be included in this section.
32. Please also consider any other income to which the child/children might be entitled. This section does not record child benefit for the adopted or special guardian child, which will be deducted from the final payment resulting from this means test.
Income calculation
33. The means test spreadsheet will automatically calculate the household monthly income, and will also apply a 20% disregard to this income figure.
PROJECTED FAMILY EXPENDITURE
Section 2i — Home expenditure
34. This section should include mortgage payments, made up of capital and interest, and also including any endowment payments linked to the mortgage. If the family pays rent, the monthly amount actually paid should be recorded here, after any deductions made for housing benefit. The only other outgoing which should be included in this section is council tax paid; this should be the amount paid after the deduction of any council tax benefit received by the household or discount for single adult households or second homes.
Section 2ii - Other outgoings
35. Where the family pay regular monthly repayments on loans for housing improvement (e.g. extensions/new kitchens) or transport costs (e.g. new car), we suggest that these are included in this section. Local authorities will need to decide in relation to the individual circumstances as to whether a loan repayment should be included here. Some loans may have been taken out by the adoptive or special guardian family to meet a new need incurred as a result of the adoption or special guardianship order buying a larger car).
36. Other payments which can be included in this section include maintenance payments relating to court orders, private pension contributions and national insurance if self-employed or not working.
37. The section for 'reasonable' child care costs will need to be determined by each local authority depending on (a) the circumstances of the family in question (e.g. how many hours the parents work). and (b) local costs for child care services. Costs recorded in this section should be those paid after any childcare element paid as part at the parents working tax credit. All those who receive working tax credit will receive an award notice which sets out how much they receive/.
Section 2iii - Core regular family expenditure
38. General household expenditure on items such as food, transport, clothes, recreation should be calculated using the Income Support allowance rates, but increased by 25%. The latest rates can be found by clicking here. The calculations below are based on the rates for 2005-6 as an indication:
Personal Allowance | Normal monthly rate | 125% of normal monthly rate (for use in this means test) |
Single adult aged 16-17 | £146.68 | £183.35 |
Single adult aged 18-24 | £192.83 | £241.04 |
Single adult aged 25 or over | £243.53 | £304.41 |
Couples both aged 18 or over | £381.98 | £477.48 |
Lone parent aged 16-17 | £146.68 | £183.35 |
Lone parent aged 18 or over | £243.53 | £304.41 |
Dependent children | £190.15 | £237.69 |
39. In completing the means test, local authorities will need to calculate the appropriate figure for the family being assessed. For example, for a household with a couple (parents) and 2 dependent children the core regular family expenditure should be recorded as £952.86 (made up of couple's allowance of £477.48 and 2 allowances for dependent children of £237.69 each).
CALCULATION
40. The spreadsheet will calculate the household's monthly disposable income.
41. Local authorities will need to enter the appropriate maximum payment for the household, depending on the number and age of the child/children being adopted or becoming special guardian children, and the circumstances of the child e.g. special needs.
42. We understand that most local authorities will have a payment structure for fostering allowances consisting of a core allowance paid for all children, plus enhancements linked to, for example, special needs. This payment structure will be linked to local variations in the cost of living and individual local authority budgets. We recommend that adoption and special guardianship maximum payments are tied to these allowances. This would result in a different maximum payment in individual cases, determined by the needs of the child, against which amount the test is run.
43. After the local authority maximum payment has been entered manually, the box marked 'amount of payment to adopters or special guardian, will show the payment that the test has calculated for adopters or the special guardian. This amount is calculated on the following basis:
- Where the family's disposable income is less than £0, the spreadsheet will show the local authority's maximum payment. This is because the adopters or special guardian have provided evidence via the disposable income calculation that shows they do not have the means to accommodate any further expenditure.
- Where the family's disposable income is higher than £0, the spreadsheet will calculate a figure that is a percentage of the maximum payment. As the disposable income figure rises above zero, the percentage of the maximum payment that the adopters or special guardian be tapered at a set rate of 50%. This rate means that for every pound of monthly disposable income a family is found to have, they will have 50 pence deducted from the monthly maximum payment.
44. We understand that many local authorities determine payments to adopters or special guardians based on the allowances they pay foster carers, and then deduct child benefit from the final amount. This is to reflect that child benefit can be claimed by adopters and special guardians but not foster carers. The appropriate amount of child benefit for the child/children who are the subject of the test should be entered into the spreadsheet. Please note that the maximum payment used to calculate the payment to adopters should not take into account any child benefit the adopters might receive (i.e., should not deduct it) as the spreadsheet allows the child benefit to be deducted after the payment has been calculated.
45. The final payment shown will be the calculation of the means test minus child benefit entered by the local authority.
D. THE DEFENDANT'S WORKING PRACTICE
"It is necessary to have a standard approach to arriving at adoption support or special guardianship support payments (if not always a standard payment), so that adopters and special guardians are treated equitably within the context of what is affordable within existing local authority budgets.
4. Plymouth City Council has a model, based on the Department of Education's model, which forms the basis for the calculation of these allowances".
"8. If a family is in receipt of Income Support, we recommend that the local authority pay the family the applicable maximum payment without assessing their income/expenditure in this test. The figure paid to the family should not include any deductions for child benefit (as they are in receipt of Income Support )" .
"Reference should be made to paragraph 17. Only if income support is the only benefit in payment should the maximum allowance be awarded."
"17. If a member of the household receives Income Support or Jobseeker's Allowance, the amount per household should be recorded here. Also see paragraph 8 above, where it is recommended that where the only income families receive is Income Support, the applicable maximum payment should be made to the family."
"38. The total household weekly income is calculated.
39. 25% of this is recorded as this is disregarded in lieu of general household expenditure.
40. A personal allowance for the carer (single person or couple) is established. This is based on income support rates.
41. The amount of weekly allowable expenditure is established.
42. The figures from parts 39, 40 and 41 above are added together then deducted from the total weekly income.
43. This leaves the amount of disposable weekly income. This is deducted from the base allowance which is based on the fostering allowance. From this is also deducted an amount for child benefit as this should be claimed. Where the family's disposable income is less than £0, the maximum payment will be payable (i.e. base amount less child benefit). This is because the adopters or special guardian have provided evidence via the disposable income calculation that shows they do not have the means to accommodate any further expenditure.
As the disposable income figure rises above zero, the percentage of the maximum payment that the adopters or special guardian be tapered at a set rate of 100%. This rate means that for every pound of monthly disposable income a family is found to have they will have £1 deducted from the monthly maximum payment."
E. THE FACTS
"Calculation of the allowance"
A – The total weekly household income is calculated.
B – A percentage of this is disregarded in lieu of general household expenditure.
C – A personal allowance for the carer (single person or couple) is established, this is based on income support rates.
D – The amount of weekly allowable expenditure is established.
E – The figures from parts B, C, D are added together the [sic: presumably 'then'] deducted from A (the weekly income).
F – This leaves the amount of "disposable" weekly income referred to as "taper" value.
This taper value is then deducted from the base allowance for each child. The base allowance is based on the fostering allowance.
From the base allowance is deducted child benefit as this amount can be claimed from the Department of Work and Pensions for each child (which foster carers cannot claim).
"From 27 September 2021
The calculation relating to your assessment is as follows:
A – 417.93
B – 104.48
C – 74.70
D – 112.91
E – 292.09
F- 125.84 (taper amount, which is divided by the number of children for whom the allowance is being claimed).
£125.84 divided by 2 = £62.92
Base allowance for child aged based on South East rate, for child up to 5 this is £153 per week, for child aged over 5 this is £169 per week.
Calculation summary
Base allowance less taper less child benefit = award
K £169 - £62.92 - £14 = £92.08
R £153 - £62.92 - £14 = £76.08"
F. THE GROUNDS OF CHALLENGE
"the team leader is not aware of any discrepancy between [the WP] and the [Department's] model document that disadvantages SG carers. It is not the intention of Plymouth City Council to do so … local authorities are not required to comply with the guidance in any event and the guidance itself sets this out, however Plymouth City Council has adopted this and work to the spirit of it".
G. CASE LAW
"(1) The government's recommendation was that where the special guardian was in receipt of Income Support, he/she should be paid the maximum locally set allowance. Merton rejected this on the basis that it suggested that Income Support was not enough to meet the needs of any family, regardless of their individual circumstances.
(2) Whilst the Model provided that the first 20% of a prospective special guardian's income should be disregarded, Merton rejected this on the basis that actual needs must be considered.
(3) The Model provided that in order to determine a family's core expenditure on household items, Income Support rates should be used with an uplift of 25%. Merton rejected this on the ground that the assessment should be of essential need and that the Income Support rates should be used without any uplift. The policy states that this "ensures that all families are treated fairly and equally". I find this last comment hard to follow - I am at a loss to see how any family that included a special guardian would be treated less fairly than any other such family by the adoption of Income Support rates plus 25% when calculating predicted expenditure or, alternatively, why families with a special guardian should be treated on exactly the same basis as families with natural children.
(4) The Model suggested that where a family has a disposable income, only 50% of that disposable income should be taken into account. Merton rejected this. The effect of this is that Merton appropriates any assessed disposable income in diminution of the allowance it pays to the special guardian.
46. In relation to the last point, in fairness to Merton it should be made clear that the method adopted by Merton's means test is to take the cared for child's tax credit into account when assessing the special guardian's family income but to ignore the cost of caring for the child when assessing the expenditure. Thus the inclusion of the child tax credit without deducting the corresponding expenditure might well result in a surplus. However, this has given rise to a further point."
"69. I can deal fairly shortly with the challenge to the form of means test adopted by Merton. It is quite true that Merton has, at various points, departed from the means test suggested and adopted an approach less favourable to special guardians. However, in the case of each departure it has given reasons for adopting a different approach that I have already summarised. Whilst many people might regard Merton's approach to some of the points as mean, the question is whether it was unlawful."
70. It is, common ground that the model means test suggested by the Department for Education and Skills does not carry the same weight as the Guidance. The Department says that its adoption is recommended in order to achieve fairness and consistency between special guardians in different local authorities.
71. Although it is essentially a matter of impression, I am unable to conclude that the differences adopted by Merton, even when taken cumulatively, are ones that no reasonable local authority could have taken. If put on a Wednesbury basis, therefore, this ground of challenge therefore fails.
72. However, as I have already mentioned, Miss Scolding submits that an issue involving fundamental human rights involves a more sophisticated level of scrutiny than for mere Wednesbury unreasonableness: there has to be both a rational connection and a fair balance between ends and means. The reasons given by Merton, for departing from the Model are, in my judgment, perfectly rational. As to the fair balance, I do not think that it can be said that the balance struck by Merton, whilst capable of being described as somewhat mean, is unfair.
73. But there is a further ground for rejecting this part of the claim. It is well accepted that local authorities have a wide margin of appreciation in matters such as the allocation of resources, which is effectively to what this amounts. The fact that Merton may adopt a more stringent approach to means testing than, say, Westminster does not begin to found the basis for an allegation that the balance struck by Merton is unfair. Merton's resources may be more limited than those of Westminster but the demands on those resources just as great. Merton has to determine its priorities and allocate its resources accordingly. In these circumstances I do not see how the court can intervene on an application for judicial review save in the clearest of cases."
H. DISCUSSION
"21. It is in my view plain that the Code does not have the binding effect which a statutory provision or a statutory instrument would have. It is what it purports to be, guidance and not instruction. But the matters relied on by Mr Munjaz show that the guidance should be given great weight. It is not instruction, but it is much more than mere advice which an addressee is free to follow or not as it chooses. It is guidance which any hospital should consider with great care, and from which it should depart only if it has cogent reasons for doing so. Where, which is not this case, the guidance addresses a matter covered by section 118(2), any departure would call for even stronger reasons. In reviewing any challenge to a departure from the Code, the court should scrutinise the reasons given by the hospital for departure with the intensity which the importance and sensitivity of the subject matter requires."
"69. The Court of Appeal said in para 76 of its judgment that the Code is something that those to whom it is addressed are expected to follow unless they have good reason for not doing so: see R v Islington London Borough Council, ex p Rixon (1996) 1 CCLR 119, per Sedley J at p 123. Like my noble and learned friend Lord Bingham of Cornhill I would go further. They must give cogent reasons if in any respect they decide not to follow it. These reasons must be spelled out clearly, logically and convincingly. I would emphatically reject any suggestion that they have a discretion to depart from the Code as they see fit. Parliament by enacting section 118(1) has made it clear that it expects that the persons to whom the Code is addressed will follow it, unless they can demonstrate that they have a cogent reasons for not doing so. This expectation extends to the Code as a whole, from its statement of the guiding principles to all the detail that it gives with regard to admission and to treatment and care in hospital, except for those parts of it which specify forms of medical treatment requiring consent falling within section 118(2) where the treatment may not be given at all unless the conditions which it sets out are satisfied."
Ground 1
Ground 2
Ground 3
Ground 4