Personal Budgets.pdf

Personal budgets and direct payments in social care are funding options provided by local authorities to support individuals with eligible needs. A personal budget is the overall cost of care and support services, specifying the amount the individual must pay and the amount paid by the authority. Direct payments are a funding choice within personal budgets, allowing individuals to purchase their own care and support services, maximizing their involvement and control.

Key points:

Personal budgets are based on the individual's eligible needs and are calculated following a financial assessment.
Direct payments can be used to employ personal assistants, purchase services from agencies, or buy equipment and adaptations.
Local authorities must provide direct payments if the individual meets four conditions: they have eligible needs, they can manage the direct payment, they have a willing representative, and they do not lack mental capacity.
Direct payments can be restricted or terminated if the individual fails to manage the payment or if the payment is not being used to meet their eligible needs.
Individuals can choose to become employers or use an agency contract to manage their direct payments.
Local authorities must provide support and help to manage direct payments, including information, advice, and guidance.
Direct payments can be used to purchase equipment and adaptations, but there are limitations on their use.
Individuals have the right to complain and seek safeguarding from abuse and neglect if they experience problems with their direct payments.

Relevant regulations and guidance include:

The Care Act 2014
The Care and Support Statutory Guidance
The Care and Support (Personal Budget Exclusion of Costs) Regulations 2014
The Care and Support (Direct Payments) Regulations 2014

Local authorities must promote individual wellbeing, provide person-centered care, and enable self-directed support. They must also ensure that individuals are involved in the care planning process and have control over their care and support packages.