Of course, the provision of this care is right and proper. However, there is no doubt that in today’s financial climate, in which local authorities are under unprecedented financial pressure, continued non-payment by the care receiver can have dire consequences for every local authority. An estimated national debt of £500 million owed to the public purse in respect of residential care charges alone, puts the problem in some context.
When you find yourself delivering care without receiving the funds that the recipient is legally obliged to pay, you can initiate your internal debt recovery process, which may resolve some cases. However, the escalating debts local authorities are facing suggest further action is warranted.
Historically, many local authorities have shied away from taking that further action, hence the ever increasing level of national debt. With these sensitivities surrounding the process, it’s no surprise that unpaid care charges often exceed the six year limitation period, with the result that the debt must simply be written off.
Find out in a FREE consultation with one of our legal experts.