What are direct payments?
The Carers and Disabled Children Act 2000 introduced some changes to the way services for disabled children and their families could be arranged. From 8 April 2003 the council has been able to offer some people cash to pay for services instead of arranging social care services on their behalf. When a council gives someone money in this way, it is known as a direct payment.
People who get this money must use it to arrange services to meet their child’s and family’s assessed needs. It is not extra income and they cannot spend it as they choose.
What are the advantages and disadvantages of direct payments?
People can decide how their needs will be met, by whom and at what time. When they use direct payments, they may be able to arrange more flexible services that can be tailored to suit their individual needs.
Direct payments carry with them responsibilities. Users of the payments will be responsible for managing the money and the support they buy with it, with help if necessary. If a direct payment user chooses to employ their own staff to help them support and care for their child, they will have the task of recruiting suitable staff. They will have to make sure they fulfil the legal requirements of responsible employers.
Who can be given direct payments?
To receive a payment you must be:
- a disabled young person of 16/17 years old
- a parent/carer (person with parental responsibility) of a disabled child up to 18 years old
- assessed as needing council services/support
- able and willing to manage the payment, either alone or with help
- the Child or Young Person should be eligible for Disability Living Allowance.
Finally, everyone who wants to arrange their own care using direct payments must be willing to sign an agreement. This says that they will follow the council’s regulations about how they should be used.
How much are direct payments, how are they made and on what can they be spent?
The amount of money you can be paid is linked to:
- the level and type of care/support it is agreed the council will provide for you each week
- payment rates set by the council.
Direct payments are paid to people in advance every four weeks. They go directly into a separate bank account that must be set up especially for the payments. The money must be spent to buy the care/support that the council has agreed to fund following a Child In Need and Family Assessment.
Direct payments can be used either to employ staff to give direct support or to buy care/support from sources such as private care agencies. This could be:
- alternative homecare support
- short breaks through day care
- out of school clubs
- overnight respite.
Direct payments cannot be used to:
- buy services from North Lincolnshire Council
- buy goods or services other than those for which they are provided.
The council has checks in place to ensure the payments are managed properly.
What help can I get to manage direct payments?
Direct payments users can get help in arranging and managing their care and support from appropriate relatives or friends. Within North Lincolnshire there is also an organisation called Crossroads Caring for Carers, South Humber Ltd. It provides independent advice and support to direct payments users. Crossroads are available to talk to people considering having their services arranged through direct payments. They can also help with the practical tasks of:
- staff recruitment
- job descriptions and contracts
- payroll services
- record keeping.
Will they affect my benefit entitlement or the tax I have to pay?
Direct payments do not affect the benefit entitlement or tax position of people who receive them. This is because direct payments do not form any part of their ordinary income. They are separate funds provided to buy the care and support services they have been assessed as needing.
Who can I employ using direct payments?
Users of direct payments decide for themselves who they employ to assist them with their care and support, providing they are eligible to work. However, you cannot use direct payments to pay partners or close relatives that live with you. As a general rule, you cannot employ close relatives who live elsewhere or other people living in the same household.
We would expect that any employees or agencies funded through direct payments to be appropriately checked and approved. This is because:
- Social Services has a duty to promote and safeguard the welfare of all children
- disabled children can be particularly vulnerable.
How can I get more information?
By contacting Social Services or Crossroads.
More information is available in the council’s ‘Users Guide to Direct Payments’ for Children and Families, which is available from Social Services Teams. Further detailed information is available in ‘A Parent’s Guide to Direct Payments’ published by Department of Health – this is available free from a Social Services Teams or Kaleidoscope Resource Centre for disabled children and their families – Dunstall Street, Scunthorpe.
For further information you can contact:
Crossroads Caring for Carers, South Humber Ltd.
Brumby Resource Centre
East Common Lane
Scunthorpe
North Lincolnshire
Tel: 01724 298331
Kaleidoscope Resource Centre for disabled children and their families
Dunstall Street
Scunthorpe
North Lincolnshire
Tel: 01724 277766.
North Lincolnshire Children's Services
1-3, Cliff Gardens
Scunthorpe
North Lincolnshire
Tel: 01724 296500
Or contact your Local Link office.