20.—(1) The Secretary of State or an after-care PCT must stop making direct payments—
(a)in the case of a patient, other than a child, who has capacity to consent to the making of direct payments, when the patient does not, or has withdrawn, consent to the making of the payments;
(b)in the case of a child or a patient who lacks capacity to consent to the making of direct payments, when the representative has withdrawn consent to the making of the payments and there is no other representative who consents pursuant to regulation 8(1)(d) or (7)(b); and
(c)in the circumstances mentioned in regulation 8(8)(b).
(2) The Secretary of State or an after-care PCT may stop making direct payments if satisfied that it is appropriate to do so and in particular if—
(a)a person in respect of whom a direct payment is made is not a patient;
(b)the Secretary of State or after-care PCT does not consider that the representative or nominee is a suitable person to receive direct payments in respect of the patient;
(c)the nominee does not agree to receive the direct payments in respect of the patient;
(d)the person who has nominated the nominee pursuant to regulation 9(1) has withdrawn the nomination;
(e)the direct payments have been used otherwise than for a service specified in the care plan;
(f)the Secretary of State or after-care PCT considers that theft, fraud or another offence may have occurred in connection with the direct payments;
(g)the Secretary of State or after-care PCT considers that the health needs of the patient cannot be, or are not being, met by services secured by means of direct payments; or
(h)the patient has died.
(3) Where the Secretary of State or an after-care PCT decides under paragraph (1) or (2) to stop making direct payments, the Secretary of State or after-care PCT must give reasonable notice in writing to the patient and any representative or nominee, stating the reasons for the decision.
(4) In the case of a patient who has died, the notice mentioned in paragraph (3) must be given to the personal representatives of the patient.
(5) On receipt of a notice under paragraph (3), a patient, personal representative, representative or nominee may require the Secretary of State or after-care PCT to re-consider the decision, and may provide evidence or relevant information for the Secretary of State or after-care PCT to consider as part of that deliberation.
(6) The Secretary of State or after-care PCT must inform the patient and any personal representatives, representative or nominee in writing of the decision on a re-consideration, stating the reasons for the decision.
(7) The Secretary of State or after-care PCT may not be required to undertake more than one re-consideration following a decision under paragraph (1) or (2).
(8) The Secretary of State or after-care PCT may stop making direct payments following reasonable notice even though a decision under paragraph (1) or (2) is being re-considered.
(9) Any right or liability of the patient, personal representatives, representative or nominee to a third party acquired or incurred in respect of a service secured by means of a direct payment shall transfer to the Secretary of State or after-care PCT when the Secretary of State or after-care PCT stops making direct payments pursuant to paragraph (1) or (2).
(10) The transfer of any liability under paragraph (9) is binding on the third party, even though, apart from this paragraph, it would have required the consent or concurrence of that party.