Facts: the NHS was responsible for severe injuries that C sustained at birth. At the time of trial, C was living in supervised accommodation where care was provided by carers paid by the local authority. The judge at first instance concluded that it was reasonable to assess damages on the basis that C would purchase private sector accommodation and care, in the future. However, he also provided for the damages to be reduced to reflect direct payments towards C’s care costs that he considered that the local authority would make, in the future.

Judgment: the Court of Appeal (May, Dyson and Smith LJJ) held that when a local authority decided whether it was necessary for it to make direct payments, under section 2 of the Chronically Sick and Disabled Persons Act 1970 and/or section 29 of the National Assistance Act 1948, it was required to disregard personal injury damages administered by the Court of Protection. Unless it was very unclear whether such direct payments would be received, they should be taken into account in the assessment of damages. In this case, the issue had arisen at the last moment and important pieces of evidence were missing, as to whether the local authority would make direct payments, so the issue would be remitted.