Direct Payments

Direct payments are cash payments made directly to the child's parent, the young person or their nominee, allowing them to arrange provision themselves. It is a different way of arranging support and can offer more flexibility, choice and control in the way support is provided.

Direct payments in respect of educational, social care and / or healthcare provision specified in an Education, Health & Care (EHC) Plan may only be agreed where a valid request has been made for a personal budget, including a request for direct payments.

Direct payments are available for social care and / or healthcare without having an EHC plan.

For the purposes of this guidance social care can include support provided via Early help short breaks.

• Social care provision – must be assessed as having a qualifying social care need over and above what universal services can provide, including when additional support is offered by way of reasonable adjustments.
• Healthcare provision – where the child or young person has been assessed as eligible for continuing care (Personal Health Budget).

Direct Payments are not means tested and will not affect any benefits and are not counted as taxable income.

Further information:

• Local Offer - Children's Direct Payments.

Parents of a disabled child under 18 years of age and/or disabled young people between 16 and 18 years old who have been assessed as having a qualifying social care need. For social care and / or educational direct payments, a child becomes a young person when they cease to be of compulsory school age, which is on the last Friday in June in the school year that they become 16 years of age, for healthcare direct payments, a child becomes a young person on their 16th birthday.

Children and young people who have an Education, Health and Care Plan and their parents, have the right to request a Personal Budget. The Personal Budget may contain elements of education, social care and health funding which may be delivered by way of Direct Payments.

Direct payments in respect of educational provision may continue up to the age of 25, if the young person remains in full time education or training and has an EHC plan.

Direct payments for social care and / or healthcare could continue up to the age of 18. However, as long as children's services remain appropriate, they may continue beyond this age while the Local Authorities Adult Services and / or the Integrated Care Board's (ICB) NHS Continuing Healthcare reach a conclusion about whether the young person has any eligible needs that will be met by them.

Local authorities must offer direct payments as one method of receiving social care support for their child. For both education and social care the local authority must be satisfied that the person who receives the direct payments will use them in an appropriate way and that they will act in the best interests of the child or young person. Regulations governing the use of direct payments for special educational provision place a number of additional requirements on both local authorities and parents before a direct payment can be agreed. These include requirements to consider the impact on other service users and value for money and to seek agreement from educational establishments where a service funded by a direct payment is delivered on their premises.

Direct payments give greater control and independence, but this increased freedom must inevitably be accompanied by increased responsibilities. Recipients take on the responsibility for sourcing the support to meet assessed needs and outcomes as agreed in the child/young person’s support plan. This involves Children's Services in partnership with carers and young people ensuring that the services they commission meet the needs identified in the assessment and that the standard is acceptable. This often involves taking on legal responsibilities e.g. as an employer. The Recipient is also accountable to the Local Authority for the way in which the money is spent; this will involve accounts being audited.

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

A Social Worker from Children’s Social Care or Liverpool’s Short Break Service (Fusion) will undertake an assessment in the usual way.

When the Social Worker has identified needs which are the responsibility of Children's Services  to meet, and considered the carer's or 16 and 17 year olds ability to manage the role as an employer, then the worker will offer the option of Direct Payments.

The Social Worker will submit the child’s assessment, care and support plan and budget authorisation form to management for approval.

If funding is approved the Direct Payments Officer in the Self Directed Support team will make sure all necessary arrangements are in place when setting up the direct payments. For eg insurance for any Personal Assistant employed, ensuring contingency funds are available and setting up a payroll provider so payments can be made.

The Direct Payments Officer in the Self Directed Support team will also make arrangements for an Enhanced Disclosure and Barring Service (DBS) check for any Personal Assistants employed and complete the contract of employment with the recipient.

The Direct Payments Officer from the Self Directed Support Team will relay the results of any checks to the Recipient and remind them that repeat DBS checks are required every 3 years.

Social Workers will ensure that carers are fully alerted to the potential risks for children and are provided with advice to minimise those risks; the available UK evidence on the extent of abuse amongst disabled children suggests that disabled children are at increased risk of abuse.

The Direct Payments Officer will ensure that the direct payments recipient opens a separate bank account. 

Once the Direct Payments Officer has confirmed all checks are satisfactory they will ensure the direct payments agreement is completed and signed. A copy will be retained on the child's electronic file. It is important the Direct Payments Officer ensures the direct payments recipient understands the agreement before signing it.

The Social Worker will ensure accuracy of the child’s Care and Support Plan prior to the commencement of the service Direct payments will cease once the Recipients financial responsibility for the personal assistant has ended.

• To take the young person/child into the community to access an activity, support inclusion, going to a club etc.
• To work provide care and support to the child/young person directly within their home, to give parents and siblings a break.

• Using an approved agency to provide direct care to meet your child/family's needs;
• After school clubs and holiday play schemes for your disabled child;
• Special educational provision specified in an Education, Health and Care Plan.
• **Overnight breaks for a child/young person, either in their home or the home of the Personal Assistant.
• **To provide care and support to a child/young person in the home of the home of the Personal Assistant.

NB overnight short breaks and care in a Personal Assistant’s own home will be subject to additional assessments and checks; such as home safety checks, DBS checks on any other household member aged 16 and over and any other assessments that are felt necessary to ensure the safe delivery of care and support to the child/young person.

Overnights will be provided and reviewed within statutory social care only.

• Employing someone without Disclosure and Barring Service and Child Protection Plan checks; someone subject to a drug or alcohol treatment requirement, youth rehabilitation order or released on National Offender Management licence conditions, or references;
• Funding a school place or post 16 institutions;
• Any services already provided by the council e.g. Residential or Outreach support services;
• Where provision is already available through a block contract - it is unlikely that a direct payment (as part of a Personal Budget) would be available to access alternative services as this would be determined to be 'double funding' and therefore an inefficient use of resources;
• Anything that has not been identified as meeting any agreed outcomes in the child/young person’s assessment, care and support or EHC plan;
• Anything identified as illegal; gambling, alcohol or tobacco; everyday living costs (e.g. rent/bills etc.); health services (e.g. vaccinations, dental charges, prescriptions etc.).

Direct Payments allow parents and young people greater choice flexibility and control, to employ their own workers at times convenient to them and in the way they wish, to provide an individual service to meet their needs.

Where the local authority decides not to make Direct Payments it must inform in writing the child's parent, or the young person, of its decision and reasons. It must also advise of their right to request a review of the decision.

Direct payments will be reviewed by the Local Authority and, where appropriate, the ICB, within the first three months of the first direct payment being made and thereafter on at least an annual basis. If the child or young person has an EHC plan, when this plan is reviewed.

The Local Authority and, where appropriate, the ICB will provide reasonable written notice of any decision to stop or reduce the amount of the direct payments, except in extreme cases where immediate cessation of payment may be appropriate and necessary. For example, payments will be stopped immediately if the Local Authority and, where appropriate, the ICB has reasonable cause to believe misappropriation of funds has occurred.

The Local Authority and, where appropriate, the ICB may stop making, or reduce the amount of direct payments if:

• Payments have accumulated, provided that they are satisfied that the reduced amount is sufficient to secure the agreed provision.
• The conditions upon which the direct payments were made, are no longer being complied with.
• The Recipient is no longer capable of managing a direct payment (in these circumstances alternative arrangements will be explored as appropriate).

The Recipient may request a reconsideration of any decision to stop or reduce the direct payments. *The Local Authority and, where appropriate, the ICB are not required to undertake more than one reconsideration of any such decision*.

The Recipient can also stop receiving direct payments by notifying the Local Authority in writing that they no longer consent to receive the direct payments.

In some circumstances, the Local Authority and, where appropriate, the ICB may require the Recipient to repay part or all of the direct payments (the decision to seek repayment, and the amount of money to be reclaimed will be at the discretion of the Local Authority and, where appropriate, the ICB).

Direct payments may be reclaimed if:

• The circumstances of the child or young person have changed in a manner which has an impact on the appropriateness of the agreed provision specified in their support or EHC plan;
• All or part of the direct payments have not been used to secure the agreed provision and/or have accumulated;
• They have been used otherwise than to secure the provision specified in the child or young person's support or EHC plan;
• Theft, fraud or another offence, such as misappropriation of funds, is found to have occurred in connection with the direct payments;
• The person in respect of whom direct payments have been made has died, leaving part of the direct payments unspent (unless exceptional circumstances apply).

The child/young person has moved out of the Local Authority area providing the Direct payment.

The Local Authority will give the Recipient reasonable notice in writing stating: the reasons for the decision; the amount to be repaid; the time in which the money must be repaid and the name of the person responsible for making the repayment.

The Recipient may terminate by notifying the Local Authority in writing that they no longer consent to receive direct payments.

The Local Authority will notify the Recipient in writing if it intends to terminate for any of the reasons specified above in Sections 12 and 13 and of the Recipient's right to request that the Local Authority reconsiders its decision.

Direct payments will terminate automatically when the child or young person's care and support or EHC plan is no longer maintained; a decision is made that children's services are no longer appropriate; or in the event of the child or young person's death.