Not sure about all the implications but on a personal note I can say something.
Dad received Attendance Allowance but it basically went into his bank account and back out to the Care Company who were attending him (set up by Social Services) . I don't remember there being much left over money wise to be honest but at the end of the day that was what the money was intended for,his care and welfare.
I am wondering why there is a thought to change the system ? I do know of a couple who have openly said the hubby gets AA and other benefits and they use it for holidays, that makes my blood boil. I don't know the answer to that but I guess as long as dad received the same level of care it wouldn't have mattered a jot if the money wasn't paid to him or directly to Social Services for them to supply the care package deemed suitable for him.
Will look into this more but a valid point to make trisher.
Forgetting where you left your keys does not mean you are “losing it”