— The council ceased paying rent under s117 when a residential care home was deregistered to become supported living accommodation. During the Ombudsman's investigation the council relied on the three-stage Mwanza test, arguing that it was not specialised accommodation and that the resident had not been placed there involuntarily owing to a lack of capacity; the Ombudsman applied the test without criticism (curiously), though not in favour of the council. It was "accommodation plus" (enhanced specialised accommodation) rather than ordinary housing, and was still required, so remained within the scope of s117. The council agreed to repay £59,149.86 for rent (which had been paid from savings until the resident became eligible for housing benefit), plus interest, and £9,143 legal fees, and to consider the cases of 21 other residents who were also told to claim housing benefit. The Ombudsman noted: "When accommodation is part of a person's section 117 aftercare, it must be free to the person. The Council and the ICB should not advise people to claim housing benefit to pay for accommodation which is part of their section 117 aftercare. ... Aftercare services cannot be withdrawn simply because the status of a person’s accommodation changes from registered residential care accommodation to supported housing accommodation."
Full details available at: https://www.mentalhealthlaw.co.uk/Cheshire_East_Council_(23_005_368)_(2025)_MHLO_9_(LGSCO)?id=140425-1432