Except as provided by subsection (2) below, the fact that an authority make a payment under section 1(1) above shall not affect their functions with respect to the provision under the relevant community care enactment of the service to which the payment relates.

Where an authority make a payment under section 1(1) above, they shall not be under any obligation to the payee with respect to the provision under the relevant community care enactment of the service to which the payment relates as long as they are satisfied that the need which calls for the provision of the service will be met by virtue of the payee’s own arrangements.

In subsections (1) and (2) above, references to the relevant community care enactment, in relation to the provision of a service, are to the enactment under which the service would fall to be provided apart from this Act.