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32.—(1) Subject to sub-paragraphs (2) and (3), in the case of a claimant in a residential care home or nursing home, any payment, whether or not the payment is charitable or voluntary but not a payment to which paragraph 16 applies, made to the claimant which is intended to be used and is used to meet the cost of maintaining the claimant in that home.
(2) This paragraph shall not apply to a claimant for whom accommodation in a residential care home or nursing home is provided by a local authority under section 26 of the National Assistance Act 1948 or section 59 of the Social Work (Scotland) Act 1968, or whose applicable amount falls to be calculated in accordance with regulation 86.
(3) The amount to be disregarded under this paragraph shall not exceed the difference between—
(a)the claimant’s applicable amount less any of the amounts referred to in paragraph 11 of Schedule 4 (personal allowances) which would be applicable to the claimant if his applicable amount fell to be calculated in accordance with that Schedule, and
(b)the weekly charge for the accommodation.
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