Part 6: Miscellaneous Social Care: Regulation and Financial Assistance Section 166: Cap on care costs for charging purposes
Subsection (1) sets out that the Care Act 2014 is to be amended.
	Subsection (2) makes amendments to section 15 of the 2014 Act meaning the costs that accrue towards the cap on care costs are the costs the adult is required to pay (at the local authority rate) rather than the combined costs incurred by both the adult and the local authority.
	Section 15(2) and (3) of the 2014 Act is substituted by a new subsections (2) to (3B) to specify what costs incurred in meeting eligible care and support needs can count towards the cap on care costs:
	Where a local authority is meeting eligible needs, the amount the adult was required to pay accrues towards the cap, at a local authority determined rate, which is set out in a personal budget.
	Where a local authority is not meeting eligible needs, the rate of spend that accrues towards the cap will be set out in either an adult’s personal budget (section 26(2A)(a) of the 2014 Act) or an independent personal budget.
	The new subsection (3) confirms any reference to "eligible needs" does not include any eligible needs prior to when a Personal Budget or Independent Personal Budget is in place, other than the period of time between the individual making the request for the Personal Budget or Independent Personal Budget, or while it is being prepared, and it being put in place.
	The new subsection (3A) includes a new definition of the term "eligible needs" in section 15 of the 2014 Act and the new subsection (3B) is a new definition of "responsible local authority". Both of these definitions apply across Part 1 of the 2014 Act.
	Subsection (3) amends section 24 of the 2014 Act (the steps for the local authority to take) by substituting subsection (3) of that section, which sets out the steps to be taken by a local authority where none of an adult’s eligible care needs are being met by a local authority. This provides a duty for the responsible local authority to prepare an Independent Personal Budget, which is used to determine the rate the adult will accrues towards the cap.
	Subsection (4) amends section 26 (personal budget) of the 2014 Act to require specific information on the needs a local authority is meeting and how costs are apportioned and then charged to an adult, to be set out in a personal budget. If eligible needs are being met by a local authority, there is also a requirement for the personal budget to include the cost of meeting those needs at the local authority rate, how much the adult must pay towards that cost and any daily living costs, if appropriate. In addition, if the adult has other eligible needs which are not being met by a local authority, the local authority must include in the personal budget what the cost of meeting those needs would be at the responsible local authority’s rate and any daily living costs, if appropriate.
	Subsection (5) amends section 28 of the 2014 Act (independent personal budget) to provide that an independent personal budget specifies what the cost of meeting an adult’s eligible needs during a relevant period at the responsible local authority determined rate would be.
	Subsection (6) amends section 29 (care account) to prevent duplication and refer to the new definition of "responsible local authority", as inserted by subsection (2) of this section.
	Subsections (7) and (8) amend Section 31 (adults with capacity to request direct payments) and 32 (adults without capacity to request direct payments) of the 2014 Act respectively, to clarify that, where the personal budget includes both eligible needs to be met by the local authority and eligible needs that the local authority is not meeting (as provided for in the amendments to section 26 of the 2014 Act set out in subsection (4)), the request for a direct payment can only apply to those needs the local authority must or chooses to meet under section 24(1) of the 2014 Act.
	Subsection (9) amends section 37(15)(a) of the 2014 Act (notification, assessment etc.) to omit a definition of "eligible needs" as a new definition of "eligible needs" has been inserted for the purposes of Part 1 of the 2014 Act into section 15 of the 2014 Act by subsection (2) of this section.
	Subsection (10) inserts new locations of definitions for "eligible needs" and "the responsible local authority" into section 80 of the 2014 Act to aid interpretation of that Act.