The Carers and Disabled Children Act 2000 empowered local authorities to offer direct payments to:
Subsequent Government guidance has placed a duty on local authorities to offer services to users via direct payments. This means that social workers must give parents/carers and young people the opportunity to use direct payments if they wish, to purchase the agreed services that form their package of care.
Direct payments can only be agreed if you are eligible to receive services from this Department, and if you and your allocated worker feel that it would be a good way of meeting your assessed needs.
Whilst the scheme provides many advantages, it also requires that you take responsibility for the day-to-day management of your assistance requirements. This is a daunting prospect for some people. For this reason, Direct Payments Support Workers are employed independently from the Adult Services or Children’s Services to provide impartial information, advice and support to anyone that needs it. The Support Workers all have personal experience of disability and use Direct Payments in their own lives. They therefore “know what it’s like”. Advice is also available from other organisations.
The Support Worker for carers and for parents of children with disabilities is employed by Carers Together, and will explain and support you through the setting up of a direct payment, and can assist with recruitment of a carer if required, help with contracts of employment, provide links to the Inland Revenue and other government agencies.
As Direct Payments are a considerable responsibility, the decision to use them should not be undertaken lightly. We suggest you read the remainder of this section, seek additional advice and support from your Support Worker, as well as talking to other people using the scheme, before making your decision.
Direct Payments enable you to control your own life, so that you can do what you want - just like everyone else.
What rules do you have to abide by?
- you must use the money to meet your assessed needs
- you are not allowed to employ close family members, who live in the same household, to provide the assistance you need, except in exceptional circumstances
- you must keep your Direct Payments in a separate bank account
- you must keep simple records on how you spend the money
- you must sign a ‘Letter of Agreement’ with the Adult Services or Children’s Services to ensure that you understand the principles of the scheme
- you have to accept the responsibilities involved in employing/arranging your staff
What are your responsibilities?
Whilst Direct Payments give you freedom and control over your life, it also puts certain responsibilities on you:
- you have to recruit and pay your staff, or arrange alternative services
- you have to manage the money you are given
- you have to make sure that your staff are not put at risk of being injured through poor health and safety procedures
- you will be expected to treat your employees reasonably
In addition, if you employ your own staff directly:
- you have to be a responsible employer, providing your employee with a job description and a contract of employment
- you may have to inform the local tax office that you are employing someone
- you may have to deduct National Insurance and tax and pay these to the Inland Revenue
- you have to ensure that you are adequately insured, particularly for Employers Liability Insurance which is a legal requirement when employing staff
In the same way that you cannot be forced to receive Direct Payments against your wishes, similarly you cannot force the Adult Services or Children’s Services to give you Direct Payments. You will need to satisfy them that you are able to manage the scheme and use the money you are given to meet your assessed needs. Your Direct Payments Support Worker can offer you assistance to set up and run the scheme, but the ultimate responsibility is yours.
It is the policy of Hampshire County Council that anyone working with children/young people will be subject to a criminal record check. For the purposes of direct payments, this includes anyone the person with parental responsibility wishes to employ to care/support that child. If you are a young person aged 16/17 years wishing to use direct payments to employ someone to provide your care, you will also need to ensure that the person has been police checked. The Adult Services and Children’s Services will undertake this (via the Criminal Records Bureau) and fund the criminal record check on your behalf.
If you decide to use direct payments to purchase care via an agency you should ask the agency whether their employees are police checked. Agencies who provide care solely for children will usually have had their staff police checked, but those who provide care for adults, or a mix of adults and children may not have had their employees checked. The local authority must be satisfied that the proposed care to be purchased is designed to safeguard and promote the welfare of your child.
Is HDPS suitable for you?
The Hampshire Direct Payments Scheme has been designed in partnership with the Adult Services and Children’s Services and disabled people to ensure that it enables you to manage your assistance requirements in a flexible way to meet your differing needs. However, HDPS is only one of a number of schemes that the Adult Services and Children’s Services offer to enable you to live in your own home. You should consider the advantages and disadvantages of each before you decide which one is best for you.
Direct Payments can be used in a variety of different ways:
- Some people use their Direct Payments to employ their own personal assistants whilst others use their Direct Payments to pay an agency to provide them with the support they need.
- If you employ your own personal assistants you will assume all the responsibilities, both legal and otherwise, of being an employer. You use the money you receive to pay staff, advertising costs, tax, national insurance and all other overheads. Some people, however find this preferable to using an agency as it can be more flexible and offer more choice
How much do I receive?
- You will receive a payment based on the number of hours agreed by the Adult Services or Children’s Services to enable you to meet your assessed needs. The gross rate is £9.56 per hour if you employ your own personal assistants or the actual cost of the agencies used.
- The hourly rate is multiplied by the number of hours agreed by the Adult Services or Children’s Services to enable you to meet your assessed needs
- You are paid monthly in advance, based on the number of days in the month
- You will be financially assessed for a possible financial contribution towards the cost of your scheme, in the same way as the Adult Services or Children’s Services would if they arranged services for you. Some people are exempt from making client contributions.
- If you have to make a financial contribution, this will be deducted from your Direct Payment before you receive it. You will be expected to top up the money you receive to reflect this and pay this contribution into your Direct Payments bank account to enable you to meet your assessed needs
- The hourly rate is reviewed each April to ensure that it is set at an appropriate level.
The choice is yours!
If you felt that Direct Payments would be the best option for some of your needs, but felt that other needs would be met best by other services provided by the Adult Services or Children’s Services (home care, day centres etc.); this is possible and is known as a ‘mixed package’. You should talk to your The Adult Services or Children’s Department Care Manager/Care Coordinator about this.
Above all, when considering “do I want to use Direct Payments?” - the most important issue is “do I want to be in control of my own life?” If you do, it is important to realise that you will not be abandoned when you start on HDPS. There is plenty of advice and support available from the Direct Payments Support Workers, organisations of disabled people and from experienced Direct Payments recipients.
After all, the best advice you can get is from someone who has been through and tackled the same issues you may be about to face. Many disabled people’s lives have been changed for the better through the control that Direct Payments offer – these people are the experts and you would be well advised to talk to them, or attend one of the regular meetings that are arranged by Disabled People and their organisations. The final decision whether you receive HDPS, or not, is up to the Adult Services or Children’s Services, based on your wishes and views.
Preparing for the assessment
The better you prepare for your assessment the more accurate will be the result, after all, you know your needs better than anyone else. There are a number of things you should think about when preparing for your assessment.
These can be done on your own, but we recommend you ask your support worker to assist you
- You need to be ready to explain to the care manager, why you have asked for assistance and how you want them to help you
- You need to work out how many hours of assistance you feel you need each week, identifying all your needs and be able to explain these to your care manager. A Personal Needs Plan and a Job Description will make this task easier. See advice sheets 2 & 3
- You need to decide what other services, if any, you feel you need
- You need to think how you will find staff, agencies or other services to work for you. You will need to be ready to discuss your financial circumstances, that is income, savings and commitments, if this is requested
- You should also consider whether anything such as equipment, adaptations etc. would give you greater independence
The assessment
At your assessment, your Care Manager will want to gain as full a picture as possible of your life and your needs, in order for them to be able to judge what the Adult Services or Children’s Services will be able to provide you with. This assessment should be seen as a joint assessment, between you and the care manager.
You will discuss your needs with the care manager and negotiate an agreement on how your needs are to be met. You should state your preference for direct payments and explain why you feel it is the best option to enable you to achieve your goals in life.
If your needs are sufficiently high that they will cost the Adult Services or Children’s Services more than £200 per week, you will be expected to consider applying to the Independent Living Fund (ILF) for additional funding above that level.
By the end of the meeting, or meetings, you must be happy that you and your care manager have adequately calculated the hours you need to meet your eligible needs. Don’t forget that the support worker has an important role in assisting you to properly assess your needs and will be happy to assist you.
The more prepared you are for the assessment, the better the chances that you and your care manager will be able to correctly assess your needs.
It is important to remember that the Adult Services or Children’s Services will decide if a direct payment will best meet your needs, it is for you to convince them that it is!
What if you are not happy with the outcome?
If you are not happy with the outcome from your assessment, you have the right to appeal against the decision. Speak to your care manager or direct payments support worker who will advise you about who to contact and what to do if you want to appeal. Alternatively you can use the Adult Services or Children’s Services formal complaints procedure. Your care manager or support worker will give you a leaflet, which explains the process and includes a complaints form.
Applying to the ILF
The ILF is a trust set up and financed by central government. Its aim is to provide top-up funding for disabled people whose assistance needs have been assessed as costing over £200 per week. In order to apply you must meet all of the following conditions:
- be aged 16-65
- be receiving the highest care component of the Disability Living Allowance (DLA)
- have less than £18,500 in savings
You must also be able to live in the community for at least the next six months, need more assistance at home than you can afford and your local authority can provide, and live alone or with people who are unable to fully meet your needs.
Further information is available, see advice sheet 12.
What happens next?
I have been awarded HDPS what next?
If you are accepted onto HDPS you will receive another visit from your care manager. They will explain what the Adult Services or Children’s Services have agreed to provide you with. You should receive two documents:
- Your ‘Care Plan’, this explains your circumstances, your needs and the services that Adult Services or Children’s Services have agreed to provide you.
- A ‘Letter of Agreement’. This will clearly state your responsibilities in agreeing to accept direct payments and the Adult Services or Children’s Services responsibilities in agreeing to make direct payments. As part of the agreement, you will have to agree to keep simple records to demonstrate that the money you receive has been spent appropriately.
These documents will clearly state how many hours HDPS you will receive, and when the scheme will start. You have to sign the Letter of Agreement to indicate your acceptance of the terms.
You will need to set up a separate bank or building society account for the direct payments. Your care manager or support worker will ask you to complete and sign a yellow form to ensure that Adult Services or Children’s Services have recorded your bank details accurately. Your payment will then be paid directly into this account. The first payment may be made by cheque.
At this point, you should speak to your support worker, to ensure that you receive whatever information and support you need to ensure you use HDPS successfully. Your support worker is available at any time in the future if you need extra support.
How much am I paid?
You will receive £9.56 per hour if you employ your own staff. If you are going to use an agency, you will normally receive the rate the agency charges, however this must be agreed with Adult Services or Children’s Services. This is reviewed each April.
You are paid monthly in advance based on the number of days in the month.
You will receive a ‘Remittance advice slip’ confirming your payment details.
If applicable, your client contribution will have been already deducted from your payment.
The hourly rate, if you employ your own personal assistants, includes allowances for admin costs, insurance costs etc. It is for you to decide how much you pay staff, and how much to leave to cover these extra costs.
It should be stressed that you are allowed to pay staff what you like, as long as it is above the minimum wage of £5.05 per hour. You may have to pay more for evenings, weekends, or bank holidays, so make provision for this.
See advice sheet 7 for more information.
Key questions
The following are key questions that you will need to answer. Your support worker can provide more information on these subjects.
How do I find assistants?
Word-of-mouth, newspaper advert, shop windows, agencies etc. You will need to interview and select the one best suited to the job. It is very important to be able to 'get-on' with your assistant. You also need to think about backup staff for emergencies.
How do I pay my assistants?
You would normally pay them weekly or monthly and should keep a record of hours worked to enable you to calculate their pay. You should issue your employees a pay slip detailing how their pay has been calculated. If you use agencies, be sure to negotiate the cost in advance, don’t forget to ask about extras such as travel costs. They will normally issue you with an invoice.
How do I tell my assistants what to do?
However you find staff, you are the boss. Direct Payments are all about you being in control. Good communication and instructions are essential. So give clear, concise instructions and have regular meetings with your staff to check all is well.
How do I become a responsible employer?
If you employ staff directly, then you have a number of responsibilities. If you use agencies to obtain staff then they may take responsibility for some of these obligations, you should check with the agency. It is important that you treat your employees reasonably with rest time and food/drink as appropriate. Ensure they can work safely in your home. It is easier to keep good staff than have to find new staff! See advice sheet 9.
What about Contracts of Employment?
All employees have the right to a Contract of Employment. We advise that you issue contracts to all employees, as both parties then know what they can expect from each other, and misunderstandings are less likely to happen. If you use agencies they are likely to be responsible for contracts; however you may want a written agreement from the agency to ensure you get what you want from them.
What about Tax & National Insurance (NI)?
You must be aware that if you employ staff, you have legal responsibilities in this area. If you pay anyone less than £94 per week you would not generally have to deduct National Insurance. If your employee earns more than £94 per week, including any work they do for other people, you may have to deduct tax from them. See advice sheet 8 for general information, however we advise you to contact your local tax office for more specific advice. If you use an agency, they would generally be responsible for tax & NI.
What about Insurance?
If you employ staff, you are obliged to have Employers Liability Insurance. This is sometimes covered under your house contents insurance; specialist policies are also available for £84 per year. Other insurance to cover accidental injury may also be prudent, especially if your assistant drives a car whilst working for you.
What about Keeping Records?
You have to keep records to demonstrate that you have spent the direct payments appropriately, and send a quarterly summary to Adult Services or Children’s Services. Your Support Worker will be happy to explain how these work. See advice sheet 13.
Detailed Advice sheets are available on all these subjects.
Re-assessments
The Adult Services or Children’s Services will contact you periodically to ensure your needs are being met and you are managing your Direct Payment. This is called a re-assessment, or review. If you feel your needs have changed then discuss them at this time. If you have a change of circumstances you are allowed to ask for a re-assessment at any time. You are expected to manage the day-to-day problems of running the scheme. However if all else fails, and the Support Worker cannot help, contact the Adult Services or Children’s Services to obtain emergency support.
What other information is available?
Direct Payments Support Workers, and other useful local organisations, organise local peer support groups for people using the scheme to share problems and learn from the experiences of others. Your Support Worker will be able to give you details about your local group.
