ANNEX A: Outline of the existing law relating to the NHS(12) The NHS and Local Authorities
253.Local Authorities are responsible for the provision of what may be described as “social care,” e.g. residential accommodation for the disabled or elderly.   The enactments under which functions in this respect are conferred on Local Authorities are set out in Schedule 1 to the Local Social Services Act 1970 (c.42) and other legislation.  Section 21 and Schedule 8 of the 1977 Act make provision for the exercise of certain specified functions.  Local Authorities also exercise functions in respect of housing (e.g.: the Housing Act 1985 (c.68)) and education (the Education Act 1996 (c.56)).
254.Sections 22 and sections 26 to 28BB of the 1977 Act, as amended by sections 27, 29 and 30 of the Health Act, make provision for co-operation between the NHS and Local Authorities.  Section 22(1) of the 1977 Act, as substituted by section 27(2) of the Health Act, places a general duty on NHS bodies (on the one hand) and Local Authorities (on the other) to co-operate in the exercise of their functions in order to secure and advance the health and welfare of the people of England and Wales.  Sections 26 to 28 make provision for the supply of goods and services by the Secretary of State to Local Authorities and vice-versa.  Section 28A of the 1977 Act, as amended by section 29 of the Health Act, makes provision for HAs in England to make payments towards expenditure by Local Authority bodies on community services, such as social services, housing and education for the disabled.  Section 28B makes similar provision for Wales.
255.The Health Act makes further provision for co-operation between the NHS and Local Authorities.  Most importantly, section 31 makes provision for NHS bodies and Local Authorities to enter arrangements under which an NHS body exercises LA functions or vice-versa.  Provision is also made for arrangements to operate a “pooled fund” from which payments may be made towards expenditure on either NHS or LA functions.  In addition to section 31, section 28 provides for HAs, with the assistance of PCTs, NHS trusts and Local Authorities, to prepare plans setting out a strategy for improving both the health of the local population and the provision of health care to that population.  Section 30 of the Health Act inserts a new section 28BB into the 1977 Act, which makes provision for Local Authorities to make payments towards expenditure incurred by NHS bodies: this provision mirrors section 28A of the 1977 Act.
256.The HSC makes further changes in relation to “partnership arrangements.” Sections 45, 47 and 48 makes provision for NHS trusts and PCTs to be designated as Care Trusts where those trusts exercise Local Authority functions under arrangements under section 31 of the Health Act.  Section 46 provides that the Secretary of State may, in certain circumstances, direct NHS bodies and Local Authorities to enter into such arrangements.  Sections 46 to 48 came into force on 1st August 2001 but section 45 is not yet in force.