Personal Injury Trusts and access to public funding

An advice blog for housing and healthcare professionals by Kate Sheehan, Occupational Therapist

It is important as professionals, working in the private and public housing sector, that we keep up to date on new Court rulings to understand funding for care for our clients. For example, a recent Court ruling confirms that funds held in a Personal Injury Trust are to be disregarded when assessing the capital resources of a person applying to their local authority for statutory funding for care needs.

Court Ruling

This judgement, R (on the application of CGT) v West Sussex County Council [2026] EWHC 293 (Admin) held that the defendant local authority was unlawful in its decision to deny funding to a seriously injured claimant, on the grounds that his monies were subject to a means test, despite the claimant having held the funds in a Personal Injury Trust.

In detail, West Sussex County Council had refused to fund the claimant’s care from 6 July 2024 and required repayment of £271,253.44 in respect of care costs paid between July 2020 and July 2024. The client was awarded £3.5 million by the Criminal Injuries Compensation Authority on the condition it be paid into a discretionary trust, which he was the sole beneficiary.

His Honour Judge Auerbach set out four grounds:

1. The defendant acted unlawfully because its decision was contrary to the express terms of para.15 of sch.2 of the Care and Support (Charging and Assessment of Resources) Regulations 2014/2672, and to the Guidance.
2. The defendant did not provide adequate or intelligible reasons for its decision.
3. The defendant wrongly took into account the 2012 Criminal Injuries Compensation Authority (CICA) undertakings, despite them not being binding on the claimant’s father (SGT), and despite the Court Of Protection having refused the defendant’s request to amend the terms of his appointment.
4. The defendant has failed, as required by the 2014 Act, to carry out a needs assessment and provide a written record of it.

The Court examined each argument presented and ultimately reached a clear conclusion determining that Schedule 2 of the Care and Support Act together with the Care and Support Statutory Guidance (currently under review), allows for the disregard of capital held in a Personal Injury Trust when calculating capital for the purposes of a Local Authority’s financial assessment. This finding applies regardless of whether damages have been specifically awarded for future care costs.

What does this mean for those of us working in the home adaptations field where there is a Personal Injury Trust?

The Court’s statement ‘allows for the disregard of capital held in a Personal Injury Trust when calculating capital for the purposes of a Local Authority’s financial assessment’ would indicate that the funds in the trust cannot be used in the means testing for a Disabled Facilities Grant (DFG).

As practitioners within the private sector, we have a duty to discuss with our clients, their deputies and/or solicitors the statutory funding available and if it is appropriate to make a request for funding under the DFG purposes if the required adaptations are necessary and appropriate. The reality is that often the waiting lists for DFG funding can be long which can impact our client’s ability to reach their goals. A direct referral to the Local Authority Housing Department is possible, although in District Councils they still have a duty to consult social services.

Essential reading

Disabled Facilities Grant (DFG) delivery: Guidance for Local Authorities in England. Pages 29 and 68 of this guidance outlines the best way forward which is clear, effective communication and collaboration between all parties involved.

To discuss this more, join the next ‘Ask the Expert’ day held by Adaptation Design on the first Thursday of the month: Call 020 8492 1617 or email info@adaptationdesign.co.uk to book your slot and receive expert, practical advice.