Direct Payments
When care at home is required, instead of receiving "arranged services" provided by your Local Authority, (Social Works Department in Scotland) your Local Authority or Social Works Department has a legal duty to offer you (or a responsible person on your behalf) Direct Payments a form of “Self Directed Support” but you are under no obligation to accept them.
What are Direct Payments?
Direct payments means you are given a personal budget to select and buy your own services. You can request Direct Payments either when care is first required or instead of any arrange services you are already receiving.
How to claim Direct Payments?
To get direct payments or “Self Directed Payments” in Scotland you'll need to contact your local council or (if you live in Scotland your Social Works Department) to ask them to assess your needs.
If you are refused Direct Payments the reason why should be communicated to you in writing.
How much will you receive?
The amount you receive will be based on the amount of care you are assessed as needing (minus any contribution you are assessed as needing to make determined by the means test), see paying for care at home.
It is down to the local authority as to how much they pay you, however, they must pay you at least the equivalent of the reasonable cost for securing the services you need from the private sector. There is no upper or lower limit. In arriving at reasonable costs, allowances should also be made for an element towards recruitment costs, NI and Statutory Sick Pay and Maternity Pay as you will be responsible for employing your own staff or hiring an agency.
How frequently you receive payments will be decided by the Local Authority.
Can Direct Payments be stopped?
Even if you decide to opt for Direct Payments the local authority still has a legal responsibility to make sure your needs are being met and can change the amount depending on changes in your need. They can also decide to stop Direct Payments at anytime if they think you no longer have needs or your needs are not being met by the money being paid.
If Direct Payments are stopped, your needs would then be provided by the Local Authority.
Your responsibilities
Whilst Direct Payments are designed to give you greater freedom and do not count as your own income for income tax purposes, they do place the following extra responsibilities on you or someone allowed to manage the money for you.
- You (or a responsible person acting for you) will have to account to the local authority as to how the money is spent.
- You will need to open a separate bank account and keep records.
If you use the money to employ someone directly to provide your services (rather than through an agency) you will also have employer responsibilities including:-
- Providing them with a contract of employment,
- Ensuring you pay at least the national minimum Wage
- Deducting the appropriate Tax and National insurance contributions and paying them to the relevant authorities
- Meeting health and safety standards
- Providing minimum holiday entitlements and finding cover.
- Ensuring you hold employers liability insurance and public liability insurances although the latter may be covered by your existing home insurance.
What can't you use Direct Payments for?
In England and Wales you cannot use the money to pay for a spouse, partner or close relative who lives in the same house as you, to care for you unless it is the only suitable way to provide you the care and support required. This could be the case if you had dementia and would only feel safe with your spouse or partner. There is no such restriction if a close relative doesn't live with you.
You also cannot use it for:-
- Services provided by the Local Authority or NHS,
- To pay for permanent care in a care home although respite care (up to a maximum of 4 weeks within any 12 month period).
The amount you receive in a direct payment can alter as your needs change