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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 >> S, R (on the application of) v A Social Security Commissioner & Ors [2009] EWHC 2221 (Admin) (03 September 2009) URL: http://www.bailii.org/ew/cases/EWHC/Admin/2009/2221.html Cite as: (2009) 12 CCL Rep 654, [2009] EWHC 2221 (Admin), [2010] PTSR 1785 |
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QUEEN'S BENCH DIVISION
ADMINISTRATIVE COURT
Royal Courts of Justice Strand, London, WC2A 2LL |
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B e f o r e :
Sitting as a Judge of the High Court
____________________
THE QUEEN on the application of S (By the Official Solicitor as Litigation Friend) |
Claimant |
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- and - |
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A SOCIAL SECURITY COMMISSIONER (Mr Charles Turnbull) |
Defendant |
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- and - |
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(2) THE SECRETARY OF STATE FOR WORK AND PENSIONS -and- (3) WALSALL METROPOLITAN BOROUGH COUNCIL |
First Interested Party Second Interested Party |
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(instructed by Community Law Partnership, Solicitors) for the Claimant
David Blundell (instructed by the Treasury Solicitor)
for the Secretary of State for Work and Pensions
Simon Birks (instructed by Bhupinder Gill, Solicitor to Walsall MBC)
for Walsall Metropolitan Borough Council
Hearing date: 18th June 2009
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Crown Copyright ©
Sir Thayne Forbes:
" provided by a non-metropolitan county council , a housing association, a registered charity or a voluntary organisation where that body or a person acting on its behalf also provides the claimant with care, support or supervision." (Emphasis added).
i) Under Regulation 14 and Schedule 2, the housing benefit authority was required to refer most housing benefit claims to rent officers, although certain types of tenancy were excluded, including (for example) the following: (a) a protected tenancy, (b) a tenancy granted by a housing action trust and (c) a tenancy granted by a registered housing association, unless the housing benefit authority considered that the dwelling in question was unreasonably large or the rent unreasonably high.ii) The rent officers were then required to make various determinations under the Rent Officers (Housing Benefit Functions) Order 1997, SI No. 1984: i.e. as to whether the rent was "significantly high" or "exceptionally high", as to whether either of those two figures was higher than the "local reference rent", and as to what was the "claim-related rent" (in all cases), the "local reference rent" (in some cases) and the "single room rent" (in the case of young individuals). The claimant's "eligible rent" was then established as the lowest of the last three figures.
iii) By virtue of Regulation 12, the housing benefit authority was required to limit its payments of housing benefit by reference to a "maximum rent" figure. Pursuant to Regulation 13, the "maximum rent" figure was itself derived from the "eligible rent" as determined by the rent officer.
"Following the decision in [RH) 2/07] it is no longer being argued that care, support and supervision is provided on behalf of the landlord. Although the landlord is intimately involved in all aspects of the supported housing scheme, including the monitoring of the support provider, the commissioner's ruling has prevented this argument from being pursued."
"The only point in issue is whether or not the landlord provides support to the tenants so as to render the accommodation as exempt for the purposes of old Regulation 11.
Having considered the scheduled evidence and heard evidence and argument I am not satisfied that [Rivendell] provides care support or supervision so that the accommodation may be considered exempt accommodation within the meaning of the regulations."
"21. The only ground of appeal which is now relied upon is that my decision in R(H) 2/07 was wrong. More specifically, it is said (correctly) that in that decision I placed some reliance on the decision of Peter Gibson J in Gaspet v Ellis (1985) 1 WLR 1214 when in fact, unknown to me, that case went to the Court of Appeal. The Court of Appeal upheld the first instance decision, but it is contended that the Court of Appeal's reasoning was significantly different from that of Peter Gibson J., and that the Court of Appeal's reasoning ought to have led in R(H) 2/07, and ought to have led in the cases now before me, to the conclusion that the care and support provider (in these cases Lifeways) did provide support "on Rivendell's behalf".
22. One difficulty with this argument is that, because it was accepted by Mr Ennals in these cases that R(H) 2/207 meant that it could not be argued that Lifeways was providing support on behalf of Rivendell, by no means all the documents and facts which might have been material to such an argument were put before the Tribunal. For example, there were no copies of the Agreements between Rivendell and Lifeways, and no evidence as to the precise role of the social services departments of the relevant local authorities in commissioning and contracting for the provision of care etc. by Lifeways. Contrast the detailed evidence which was before the appeal tribunal in R(H) 2/07.
23. However, it is asserted on behalf of the Claimants in these applications that the arrangement between Rivendell and Lifeways is broadly "on all fours" with that between Rivendell and Citizenship First in R(H) 2/07. I have been provided with copies of an Agreement dated 16 April 2004 between Rivendell and Lifeways and with a copy of an engrossed (in 2005) but unexecuted version of what would appear to have been intended to be a replacement agreement between the same parties.
24. The question for me in these applications therefore becomes, in effect, whether it is arguable that the reasoning of the Court of Appeal in Gaspet v Ellis leads to the conclusion that my decision in R(H) 2/07 was wrong.
25. I think that it is clear from my reasoning in R(H) 2/07 that I was very conscious that Gaspet v Ellis could not be a direct authority on the meaning of the definition of "exempt accommodation" because it related to different wording in a different statutory context. The same must be true of the Court of Appeal's reasoning.
26. The significant passage from the judgment of Peter Gibson J. is set out in para. 48 of R(H) 2/07. In particular he said:
'The phrase, "by him or on his behalf" is to my mind one very familiar in ordinary language I would venture to say that its ordinary and natural connotation is that the act must be done by the claimant or his agent. I am satisfied that [counsel for the Revenue] is correct in his submission that there must be a contractual link between the claimant and the person by whom the research is directly undertaken and the contractual link is one of agency or something akin thereto '
27. In my judgment, it is reasonably clear from the judgments of Kerr and Nicholls L.J. in that case that they agreed with that statement, subject only to the qualification that the relationship giving rise to the agency or something akin to it did not have to be a direct contractual one. Kerr LJ said (p. 775B):
'As the judge said, the phrase "on behalf of", in particular in the context of the phrase "by or on behalf of", denotes the concept of agency. This is a perfectly straightforward concept, even if in a context such as the present it may require a wider interpretation than agency resulting from a direct contractual relationship. Where, as here, the taxpayer company did not directly undertake the work itself, I therefore ask myself whether the work was undertaken by anyone as its agent, allowing for this wider sense in favour of the taxpayer company.'
Nicholls LJ said (at 777B):
'I agree with the judge that to be within the phrase "on behalf of" the relationship must be one of agency, or akin thereto, although I think that there need not necessarily be a direct contractual link between the claimant and the person by whom the research is directly undertaken.'
28. In saying that there need be no direct contractual link between the person undertaking the research and the claimant the Court of Appeal appears to have had in mind situations such as that where A commissions B to carry out research, and B subcontracts the work to C. In that situation C might well be carrying out the research "on behalf of" A. That was the example given by Nicholls LJ at 777D to E. In the present case, and in R(H) 2/07, there was a direct contractual link between Rivendell and the care and support provider. However, for the reasons which I gave in R(H) 2/07 that relationship was not in my judgment one of agency or anything akin to it.
29. The Claimants in this case also rely on the following passage in the judgment of Kerr LJ (at 776A-B):
'It is true that the words "on behalf of" can have a more extended meaning than agency, in the sense of "for the benefit of" or "in the interests of". But I do not think that this is the sense in the present context. It would introduce a great deal of uncertainty into the effect of the section. A close relationship between the claimant and the undertaking of the research is inherent in the language. The concept is that the research is being undertaken directly, either personally or through an agent.'
30. It is said on behalf of the Claimants that in the definition of "exempt accommodation" the word "directly" is not present, and that there is nothing in that definition that requires such a close relationship as to preclude work that is merely "for the benefit of" or "in the best interests of". It is of course perfectly true that the word "directly" is not present, as it was in the provision under consideration in Gaspet v Ellis. It is also true that Bingham LJ in his judgment attached considerable significance to the presence of that word. But it does not follow from the Court of Appeal's reasoning in Gaspet v Ellis that where that word is absent the wider meaning referred to by Kerr LJ, and which had been in effect contended for in R(H) 2/07, must apply. For the reasons which I gave in R(H) 2/07, and in particular at paragraphs 51 and 52, the words "or a person acting on its behalf" in the definition of "exempt accommodation" do not in my judgment have that broader meaning.
31. It is further said on behalf of the Claimants that Rivendell and Lifeways were parties to a joint venture, and that it was accepted in Gaspet v Ellis that the research was being carried out by BP and Amoco on behalf of other members of the syndicates (i.e. the other parties to a joint venture). However, the relationship between BP and Amoco and the other members of the syndicates was clearly, so far as the carrying out of the research was concerned, one of agency; BP and Amoco were clearly carrying out the research on behalf of the other members of the syndicates.
32. Reliance was placed by Mr Rutledge on the fact that Kerr LJ said (at p. 775D):
'The commissioners said that "undertaking the research" refers to persons who have commissioned it, in a wide sense, i.e. without any direct contractual link as a necessary requirement. I agree with that approach. One can also say that it refers to, or any rate includes, the persons who have undertaken direct responsibility for the research and procured it to be carried out. It seems to me that, broadly speaking, those situations cover the meaning of the words "directly undertaken.'
33. Mr Rutledge submitted that Rivendell could be said to have commissioned the provision of care, support and supervision by Lifeways. I note that Kerr LJ was in that passage dealing with the meaning of "directly undertaken", rather than the meaning of "on behalf of". But in any event it does not seem to me that Rivendell can be said to have commissioned the research (sic) in circumstances where none of the care provider's remuneration came from Rivendell and where it was the social services department of the relevant council which engaged and (to a large extent) paid the care provider. I note that Clause 1 of the 2005 Agreement in the present case provides that the terms of the Agreement "shall be binding for the same period as the Support Provider's Contract continues with the Commissioning Authority " The "Commissioning Authority" is clearly the social services department of the relevant council.
34. At the end of the day, it is clear that (a) Rivendell had no statutory or contractual obligation to provide care, support or supervision which it needed to engage someone else to carry out on its behalf (b) the relevant social services departments did have the statutory obligations in that respect, and engaged the care provider to provide care, support and supervision, at an appropriate remuneration. In those circumstances, for the reasons given in R(H) 2/07, it is in my judgment clear that the care etc. was not being provided by the care provider on Rivendell's behalf, within the meaning of the definition of exempt accommodation.
35. In my judgment, the most which Mr Rutledge can get out of the Court of Appeal's decision in Gaspet v Ellis is that, because the Court of Appeal (and in particular Bingham LJ) placed somewhat more emphasis on the presence of the word "directly" than did Peter Gibson J., the Court of Appeal's judgments are perhaps less helpful as an authority in the present case than is that of Peter Gibson J. But it does not seem to me that the Court of Appeal's decision, any more than that of Peter Gibson J., supports an argument that on the facts of R(H) 2/07 the care and support provider was providing care and support on behalf of Rivendell.
36. I note that it is accepted by Mr. Rutledge and indeed positively asserted that it follows from his submissions that not only the housing related support, but also the personal care and supervision, was being provided on Rivendell's behalf. That submission was expressly disclaimed by Mr Ennals on behalf of the claimants in R(H) 2/07. It seems to me to be a startling proposition. Rivendell are surely in the business of providing housing, not of providing personal care and supervision.
37. "
i) Lifeways contracted to maintain its registration as a domiciliary care agency and to provide CSS to any individual identified by Walsall, pursuant to a commissioning agreement in the form of an Individual Service Agreement;ii) Lifeways contracted to provide care and support services up to specified standards; and
iii) Lifeways was required to implement Walsall's goals of (a) giving service users a choice of where, and with whom, they live, (b) promoting the community involvement of the service user, (c) separating housing from care provision wherever possible, and (iv) giving service users choice over who provides their care and support (see the annexed Service Specification).
i) The preamble states that Rivendell is a non-profit making voluntary body formed to provide housing for vulnerable people, that Lifeways is registered as a provider of domiciliary care under the National Care Standards Act 2000 and that it is the intention of the parties to provide accommodation "in a supportive environment for persons with learning disabilities (the Scheme)".ii) The function of Rivendell under the agreement was to acquire suitable property, to let it to tenants proposed by Lifeways and to attend to all housing-related matters.
iii) The essential function of Lifeways under the agreement was to select appropriate tenants and, thereafter, to provide the tenants with appropriate levels of CSS in accordance with a care plan and pursuant to a contract with a commissioning body (i.e. the relevant local authority, in this case Walsall): see, in particular, Lifeways' specified responsibilities as set out in paragraph 5.2 of the agreement.
"(2) Non-profit making accommodation managed by housing associations and charities should be exempt from the proposed restriction.
The Government accepts this recommendation in part. However, the Government is mindful to ensure that private landlords are not disadvantaged compared with housing associations. We will exempt from the new proposals the following accommodation:
Hostel accommodation for people without a fixed way of life which is funded under Schedule 5 of the Supplementary Benefits Act.
Accommodation provided by housing associations, registered charities or voluntary organisations where case, support or supervision is provided by, or on behalf of, the provider to residents.
However, not all accommodation managed by housing associations or charities is catering for people requiring care or support. Housing Association property is already treated advantageously for Housing Benefit purposes, and the Government considers that there is no reason to introduce further special treatment for Housing Association or other property that meets ordinary housing needs."
"K. POSTSCRIPT
101. It seems absurd that the very important question whether the rent eligible for housing benefit is limited to that assessed by a rent officer should depend on whether the landlord can be said to provide some degree of support. It is difficult to see why a landlord which provides no support should be in a different position from one which provides some, albeit not very much support. The factors which may render supported housing more expensive (e.g. the need for a room to accommodate an overnight carer), and so justify the absence of the usual restriction on the rent, are present whether the support is provided by the landlord or by some other person or body. In addition, if I am adopting the right approach to resolving the issue whether the landlord provides support, it will often be necessary to investigate the landlord's activities in considerable detail, which absorbs an enormous amount of the parties' time and money, and judicial time, and even then there is at the end of the day room for difference of opinion as to the correct outcome. It cannot be sensible to have that as the test unless no more practicable one can be found."