News

Liverpool council is to challenge the government in the courts over its funding of those already in care who had previously been funded by the benefit system.

The council is to seek a judicial review over the way money has been allocated after local authorities took responsibility for the funding of people who had been entitled to preserved rights benefit rates of income support because they were resident in nursing and residential care homes when the community care policy was introduced in 1993.

Numerous councils have claimed that central government has underestimated the amount needed to cover their new responsibilities, but Liverpool is understood to be the first council in the country to initiate legal action.

The council said it found itself with a £1.63 million shortfall when it became responsible for an additional 800 older people following the transfer of people with preserved rights in April.

Dr Jeremy Chowings, executive member for social care and health, said: "This needs to be sorted out because it's about the care of people. We're still hoping we might not get to the point of full blown legal action."

He said the council was currently working within its community care budget, but expected "difficult decisions" to have to be made before the end of the financial year.

The department of health said it will fight any action.