Frequently Asked Questions
1. What is a Direct Payment?
It is a payment from a local authority Social Work Department, with which an eligible person can purchase services to meet assessed community care needs. It has no effect on the recipient's benefits.
2. Who is an eligible person?
Any person, of any age, assessed as needing a service, who consents (or where an appropriate adult or parent consents) to receiving a payment they can manage (if necessary with assistance)- There are a few exceptions listed in The Scottish Government Guidance Annex B, Number 5
3. What can be purchased with a Direct Payment?
Any care and support service that meets an assessed need. This can include respite, day care, care at home, personal assistance, aids- equipment and temporary adaptations, meals-on-wheels, personal and domestic care. In some cases, it can also be used to access education and social participation.
4. From whom can this service be purchased?
- From any Care Agency
- From any local authority that will sell its services.
- By employing of any person as a personal assistant (but you can only employ a resident family member in exceptional circumstances).
- From a self-employed person, other than a partner or resident family member, (unless in exceptional circumstances, determined by the local authority)
5. Can someone, other than the assessed person, receive and/or manage the payment?
Yes- Parents of, or those with parental responsibility for, children under 16 (or in some circumstances under 18).
Guardians/Attorneys of adults over 16 - and certain other persons that the local authority determine are suitable.
6. Can Guardians or Attorneys request and receive Direct Payment?
Yes. These persons can consent on behalf of someone, if the client evidently lacks capacity. The local authority would have to conclude from an assessment, that the person with assessed need has, after every attempt to support them, no capacity to make a decision to receive Direct Payment.
In that event persons with relevant powers can do so, under provisions of the Adults with Incapacity (Scotland) Act 2000.
7. Are Direct Payments subject to review, monitoring, or audit?
Yes. DP are just another way of meeting assessed need, and should be subject to review and monitoring, in the same manner as services. A LA must remain satisfied that assessed needs are being met.
Management of money/funds is also a subject to review. The Scottish Government encourages the use of Direct Payments A Guide for Local Authority Finance Managers. This guidance promotes a light touch auditing approach which includes the frequency for monitoring based on the size of the package and the competence of the individual to manage it.
8. Is there a limit on the amount of payment?
No. Although the limit, in practice, is normally set by the cost to the local authority of providing an equivalent service.
9. Is it means tested?
Yes. A financial assessment (usually means tested) will be carried out in the normal manner.
If the service is “free” (e.g. children’s services, adult day centre, free personal care to older people) no charge operates. Charging policies may vary according to local authority.
10. How does it relate to Independent Living Fund (ILF)?
ILF are a UK Government agency. The ILF funds can top up the local authority’s Direct Payment. Both payments can be utilised in joint funded arrangements for common end use.
Independent Living Funds are also subject to distinct terms and conditions of use, as they are payable on a separate legislative basis (e.g. there are different rules on resident family members, and no explicit issues requiring the invocation of Incapacity Legislation). See- www.ilf.org.uk for more details.
Both Direct Payments and Independent Living Fund can be accessed in one package. The local authority needs to ensure that external funds (and attendant charges) are merged without overlap, in a coherent way. The client should not be double charged by both systems.
This inclusion within a single package of support is also the case with funding from external sources such as the Health Board, Access to Work from the DWP-and payments for support from the Education Authority, or any third party (including the clients contribution).
11. What are the payments rates?
In line with Scottish Government guidance, it is for Local Authorities to determine the Direct Payment rate. This ensures that Local Authorities can take into account local conditions and workforce considerations. The guidance states that A Direct Payment rate should be sufficient to purchase a service of an equivalent standard to a council provided service.
12. What bank account is used?
The Scottish Government encourage local authorities to adopt Direct Payments A Guide for Local Authority Finance Managers. This guidance recommends that for packages of less than £25 p/w or for a one of purchase such as an adaptation than a separate bank account is not required. However for packages of more than £25 p/w or in a circumstance where the client acts as an employer, a separate bank account is recommended. Payments can include ILF or other external monies- and should include the clients’ own contribution, if any.
13. Is cover provided in emergency?
It is the Direct Payment recipient who is responsible for contingency planning. Any package should anticipate the need for emergency back up. If the clients’ own arrangements fail, the local authority under its duty of care should sustain the user with emergency service provision. Regular breakdown will cause the local authority to reconsider the viability of the client's arrangements and may result in a suspension or termination of the Direct Payment.
