4.1.2 Direct Payments

1. What are Direct Payments?

A Direct Payment is money given to children aged 16 yrs or over who have a disability and to parents or carers, aged 16 or over of young people, by the authority to enable them to obtain for themselves services to meet their assessed needs, rather than relying on direct service provision from Northamptonshire Children’s Trust. Direct payments are monetary payments made by councils directly to individuals who have been assessed as having eligible needs for certain services (‘eligible needs’), including those that care for others. Direct payments are one way in which people can direct their own support. As such they promote independence, choice and inclusion by enabling people to purchase the assistance or services that the council would otherwise provide in order to live in their own homes, to be fully involved as active citizens in family and community life, and to engage in work, education and leisure.

The Children & Families Act 2014 introduced new legal duties relating to children and young people with SEND. The Act introduces a right to a Personal Budget for all children and young people who have an Education Health & Care Plan (EHCP) and assessment and planning is required from age 0 to 25 to help avoid the often difficult experience of transition from children’s to adult services.

People eligible for direct payments include carers of disabled children and 16 – 17 year old young people with disabilities. Direct payments provide people with the freedom to design services around their specific circumstances and needs and will remain a core component in delivering the personalisation agenda and supporting individual independence, choice and control. The Government has produced a national guide for people who receive direct payments and a parents’ guide for parents with disabled children. Councils should also allow for differing communication requirements, for example for non-English speakers, British sign language, for deafblind people, large print, audio and Braille.

Direct payments may, for some carers and people with parental responsibility for disabled children, be the key to accessing the support they require to enable them to continue in their caring role and to promote the welfare of their disabled child. A financial payment gives carers and young people with disabilities flexibility to look beyond the ‘off-the-peg’ service solutions for personal assistance to meet their assessed needs. This will help increase opportunities for independence and enhanced self-esteem.

Direct payments allow for choice and flexibility in meeting the needs of a child with disabilities e.g. where the local council is providing a care service, the person with parental responsibility of a disabled child may want that part of the package to continue to be provided direct whilst purchasing other parts of the care package from other sources.

NCT has a duty, or in some circumstances, a power to provide Direct Payments for:

• A service under section 2 of the Carers & Disabled Children's Act 2000;
• A service, which the Local Authority may provide under section 17 of the Children Act 1989 (provision of services for children in need, their families and others);
• Practical assistance under section 2 of the Chronically Sick & Disabled Persons Act 1970;
• The special educational provision specified in an EHCP.

Provision of Information Regarding Direct Payments

Each eligible carer of a child with a disability, or 16 and 17 year old young person with a disability, should be offered the choice of having their needs for an equivalent service met through direct payments rather than through services provided or arranged by the council. This should be discussed as part of the Children in Need planning process.

Information and support should be offered to carers and young people as early in the support planning process as possible about what receiving a direct payment will involve, as managing direct payments is not simply about handling money. It also involves people making their own arrangements, with assistance if necessary, to obtain the services which the council would otherwise have arranged or provided. Northamptonshire Children’s Trust use the Personal Budget Support Service (PBSS) which is a team within West Northamptonshire Council that supports adults and children who receive a Direct Payment and want assistance in managing their Direct Payment.

PBSS gives advice and support on all matters relating to managing your Direct Payment, including:

• Employer role and responsibilities;
• Employment law;
• Paying staff;
• Managing care agencies;
• Keeping records.  

The team also support with recruiting Personal Assistants (PAs) including shortlisting, interviewing, DBS checks and reference checks. People who employ a PA can access and use the PBSS payroll or managed accounts service, which includes HMRC payments and pension contributions for employees.

If individuals wish, mixed packages may be arranged with some directly provided services and direct payments for other needs. This could give carers and young people the opportunity to familiarise themselves with the business of using direct payments before taking on responsibility for arranging services to meet all their needs.

People who are already receiving services may wish to switch to direct payments. They may also wish to combine a package of services and direct payments. They may not raise these possibilities themselves so staff should raise them at, or between, a person’s reviews.

Where there is a difference of views between parents and disabled young people aged 16 or 17, the duty to make direct payments might mean that local councils should give precedence to the views of the young person. It follows that there may be situations where it would be right for a young person to receive a direct payment whether the parents agree or not, although it is important that local councils consider the welfare of the young person in such circumstances.

2. Who can get Direct Payments?

Those who have been assessed as meeting the criteria for disabled children's services aged 16 or over. Children and young people who have Education, Health and Care Plan and their parents have the right to request a Personal Budget, which may contain elements of education, social care and health funding, and may be delivered by way of Direct Payments. Under the Children and Families Act 2014, this covers those aged 0-25 having special educational needs and disabilities. Direct payments are available if a child or young person is disabled and aged 16 or over or is a carer or parent aged 16 or over for a child with disabilities.

Direct payments can also be made to a willing and appropriate person on a disabled person's behalf if they lack the mental capacity to agree to and manage direct payments themselves.

3. How Often are Direct Payments Made?

Direct Payments are paid in advance into a bank or building society account specifically set up for this purpose, as a one off payment or on a weekly basis. If the direct payment is assessed as being needed at key times e.g. school holidays, then payment will be made accordingly.

4. What is the Process?

Following completion of a child and family assessment and having decided the overall level of need for the child, the social worker will discuss the range of services available to the child and family including the appropriateness and eligibility to using a Direct Payment to enable the child or family to purchase an equivalent service. Where the carers of a child with a disability seek to receive a direct payment in place of direct provision of services for some of all of their assessed support needs, the request will be presented to the Service Manager of the Children with Disabilities Service, with the relevant needs request form and the supporting assessment. The payment will be linked to the assessed level of need. The outcome will be recorded as part of the decision making process and if agreed, the request will be completed for the Monitoring and Payments Team responsible for Direct Payments.

A separate bank account for the Direct Payment will need to be opened by the child or the parents/carers and a full record kept of how the Direct Payment has been spent.

5. The Use of Direct Payments

5.1 Ofsted regulations

Please note that Ofsted regulations may apply to some direct payment arrangements, especially for children under eight years of age. Full details and exemptions are given in the Direct Payments Guidance.

5.2 Employing relatives

Direct payments cannot be used to pay for services from a spouse, partner or a close relative living in the household unless the local authority consider it is necessary to do so.

Regarding the employment of relatives, as explained in the Direct Payments Guidance, the allocated worker should seek advice from the team manager before making a payment in these circumstances.

NCT regards relatives as part of the child and family's support network, whether living in the same household, or elsewhere, and as such would not usually expect to receive payment for providing support as a family member. In exceptional circumstances this may be agreed and will need to be authorised by the relevant Team Manager before payments can be made. The Team Manager's decision must be noted in the child's Carefirst record.

5.3 Workplace pensions

Direct Payment recipients are now (from 2015) required to provide access to workplace pension schemes for employed personal assistants. This applies when certain criteria are met and further advice should be sought from the Direct Payment Support Scheme. Please refer to the Direct Payments Guidance which explains that where this applies.

6. Disclosure and Barring Service Checks and Risk Assessments

Please read relevant chapter of the Direct Payments Guidance.

6.1 Direct payment recipient declines DBS check

Where a direct payment recipient has declined for a DBS check to be completed on the prospective carer, the Declined DBS Risk Assessment must be completed. The DCT social worker will carry out the risk assessment interview, with the prospective employee and the Direct Payment recipient (usually the child's parent).

The completed risk assessment form will be sent to the Assistant Director Corporate Parenting for approval. The direct payment recipient will be required to sign Declaration before direct payments can start.

6.2 Commencing care prior to DBS check

Where the need for support is immediate and a direct payment recipient wants a carer to start prior to receiving the outcome of the DBS check, the direct payment recipient will be required to sign DBS Declaration form if all the requirements are met, these are:

These should only be used in extreme circumstances where the employment cannot wait for the DBS check to be completed.

They can only be used when:

• The DBS check has been applied for prior to starting;
• The self-declaration has been completed and shows no adverse information;
• All other pre-employment checks are completed including references, self-declaration form;
• The team manager is in agreement and confirms no adverse information is held about the applicant;
• The applicant will be supervised at all times;
• The risk assessment must be reviewed weekly until the DBS check has been returned and evidenced.

6.3 Carer is unwilling to provide evidence of DBS check

In cases where the direct payment recipient insists upon employing a carer who is unwilling to provide evidence of the DBS check outcome, NCT will consider the risks and any concerns and will either refuse the direct payment or require DBS Declaration form to be signed.

6.4 DBS check reveals a trace

Where the DBS check reveals a trace the DCT Team Manager will advise as to whether a risk assessment is required. A DBS Trace Risk Assessment will be undertaken by the DCT Social Worker with the proposed carer and the Direct Payment recipient (usually the child's parent).

The completed risk assessment form will be sent to the Assistant Director Corporate Parenting for approval. The proposed carer will not be able to commence employment until the outcome is positively confirmed.

6.5 Referrals to the DBS

Where direct payment recipients wish to refer to the DBS any relevant concerns that may arise in the course of employment, they are advised to contact their child’s social worker for further support. The social worker should liaise with the Recruitment Hub to provide support.

7. Direct Payments: What They Can and Can’t be Spent on

Please read relevant chapter of the Direct Payments Guidance.

8. Decisions Not to Make Direct Payments

Where NCT decides not to make Direct Payments it must inform in writing the child's parent or the young person of its decision and reasons in a format that is accessible to them and in line with the Data Protection Act. It must also advise of their right to request a review of the decision.

9. Monitoring and Review of Direct Payments

Direct payments are subject to review and financial audit.

Direct payments are flexible and can change to meet new or changing needs but within the matrix guidance arrangements. The use of direct payments should be reviewed at every planning meeting which reviews the Child in Need Plan. If the level of need changes or new needs arise, the payment may be amended accordingly.

The outcome of the review of the Direct Payment must be reported to the who undertake financial audit in respect of the payment.

When carrying out a review, the NCT must consider whether:

• It should continue to secure the agreed provision by means of Direct Payments;
• The Direct Payments have been used effectively;
• The amount of direct payments continues to be sufficient to secure the agreed provision;
• The recipient has complied with their obligations on the use of the Direct Payment.

Following a review the NCT may:

• Substitute the person receiving the Direct Payments with a nominee, the child's parent or the young person, as appropriate;
• Increase, maintain or reduce the amount of Direct Payments;
• Require the recipient to comply with either or both of the following conditions:
  • Not to secure a service from a particular person;
  • To provide such information as the NCT considers necessary.
• Stop making Direct Payments.

Where NCT decides to reduce the amount of Direct Payments, it must provide reasonable notice to the recipient, and must set out in the notice the reasons for its decision.

NCT must reconsider its decision, where requested to do so by the recipient, but is not required to undertake more than one reconsideration of a decision. When conducting its reconsideration, NCT must consider the representations made by the recipient (and where the recipient is a nominee, any representations made by the child's parent or the young person) and must then provide written reasons to the recipient (and to the child's parent or young person, where the recipient is a nominee) of its decision following the reconsideration. NCT may reduce Direct Payments following reasonable notice despite the fact that a request for reconsideration has been made.

10. Repayment and Recovery of Direct Payments

NCT may require the recipient to repay part or all of the direct payments, where:

• The circumstances of the child or young person have changed in a manner which has an impact on the appropriateness of the agreed provision;
• All or part of the Direct Payments have not been used to secure the agreed provision;
• Theft, fraud or another offence may have occurred in connection with the Direct Payments;
• The child or young person has died.

It must give notice in writing to the recipient, setting out the reasons for the decision, the amount to be repaid and a reasonable timescale within which the amount must be repaid.

NCT must reconsider its decision where requested to do so by the recipient (but is not required to undertake more than one reconsideration of a decision). When conducting its reconsideration, NCT must consider the representations made by the recipient (and where the recipient is a nominee, any representations made by the child's parent or young person) and must then provide written reasons of its decision following the reconsideration to the recipient (and to the child's parent or young person, where the recipient is a nominee).

NCT may only seek repayment of any portion of the Direct Payments that has not already been spent on the agreed provision.

11. Ceasing Direct Payments

NCT must stop making Direct Payments if:

• The recipient has notified the local authority in writing that he or she no longer consents to receive the Direct Payments;
• The recipient ceases to be a person to whom a Direct Payments may be made;
• Following a review, it appears to the local authority that:
  • The recipient is not using the payment to secure the agreed provision;
  • The agreed provision can no longer be secured by means of Direct Payments.
• At any point NCT becomes aware that the making of Direct Payments is:
  • Having an adverse impact on other services which the local authority provides or arranges for children and young people with an Education, Health and Care Plan which the authority maintains; or
  • No longer compatible with NCT's efficient use of its resources.
• It has taken reasonable steps to ascertain whether the young person consents to Direct Payments and the young person has not notified NCT of their consent.

Where NCT decides to stop making Direct Payments, the local authority must first give notice in writing to the recipient setting out the reasons for its decision.