Finally there has been an Ombudsman ruling on a case where Mum was paying non-resident daughter £850 pm for looking after her. Daughter is set up as self employed and reports money as earnings.
When more care was needed a Combined assessment showed what daughter did and 1 extra hour a day from an agency was granted. Except when finance review done subsequently (and Ombudsman says should have been done at time or before care started!) Council refused to recognise the money paid to daughter as money for care.
Ombudsmen ruled this was wrong and it had to be treated as a care related expense
Please do note that there are many Ombudsmen and this one seems particularly simple in his approach and belief of what should happen, but it still remains a ruling thay can be refered to.
Note too, the paid family member had to be non-resident