Information to assist you with options for managing your personal budget.

Lots of people worry about managing their Personal Budget money but there are many options that you can choose from, depending upon the level of responsibility you feel able and willing to undertake. This fact sheet will focus on the different methods available to manage your Personal Budget.   

DIRECT PAYMENTS*
A Direct Payment is money paid from your council directly to you. Since April 2003, every local council has had to offer those who are eligible, money to buy services or equipment as an alternative to the council arranging services for them.  Most people receiving social services support have a right to direct payments. Changes to legislation in 2009 now mean that people who lack capacity to consent to a direct payment can now receive payments in this way.  Direct Payments can now be made to a willing and appropriate ‘suitable person' such as a family member or friend who receives and manages the money on the person's behalf.

Direct Payments offer great flexibility, but by accepting them you take on the responsibility for managing the money and arranging the services that meet your needs.  You have to make sure that you keep records to show that you have spent the Direct Payment as the council agreed in your support plan.   

To receive a Direct Payment you need to open a separate bank account that will only be used to manage your direct payment.  You will need to keep adequate records of how the money is spent. Bank Statements from the account, any invoices and receipts should be kept for evidence. 

Direct Payments can be used to employ your own Personal Assistant (s).  This means that you become an employer and take on the legal responsibilities of being an employer. There is help available to make sure that you have all of the legal requirements in place including support with recruiting staff and managing the payroll. The council can offer advice and support in this area as can other organisations.  

Advantages of employing your own staff

• You have flexibility in choosing who provides your support.
• You gain long term familiarity with the person who is providing support.
• You can receive support to recruit and employ your own staff.
• You stay in control of your support and decide what tasks are done and what hours are worked.
• You stay in control of your support and decide what tasks are done and what hours are worked.

Disadvantages of employing your own staff

• You have a lot of responsibilities and paperwork.
• You have to manage people and pay their holidays, sickness and taxes.
• Employing your own staff means there is no automatic cover in an emergency.
• You cannot use a direct payment to pay your husband, wife or partner or pay a close relative who lives in the same house (unless the council has agreed).

THE LOCAL AUTHORITY*
The Local Authority can continue to manage your Personal Budget.  Some people choose to continue using their traditional services such as attending a day centre, respite care or home care services.  If your current services are working well and you do not wish to change them the council will continue to make the payments on your behalf.  The council can also make some payments by transferring money to agreed organisations such as making the payment for an annual gym membership. 

If you want the council to manage your budget you do not have the same level of flexibility and control that you have with other payment options. The council usually contract with a list of providers that they will use to buy your care. 

*These options are currently available in Doncaster.

COMBINATION
You can choose to receive some of your social care support as a direct payment, whilst the other part of your support could be managed by the local authority. This option may be useful if you are not sure how much you initially want to take on yourself. 

INDEPENDENT THIRD PARTY
If you do not want or feel able to manage the personal budget yourself you can ask an independent third party to look after it for you.  This can be a community based support  or advocacy organisation or an Independent Broker. 

The independent third party takes the responsibility of managing the money and keeping clear accounts, this will usually include operating a payroll service. 

The benefit of this approach ensures that you still retain control of the money whilst the independent third party takes responsibility for the legal and financial duties involved.  Independent third party agreements mean that the person/organisation responsible for managing your money does not work for the council or the service providing your support.  This means that they will be focussing solely on your interests and there will be no conflict. 

The disadvantage of this approach is that independent third parties will usually charge a fee to cover the administration time involved in this arrangement.  The fee should be payable from your personal budget and should never exceed more than 15% of the annual budget.