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Direct Payments and Personal Budgets

What is a direct payment?

A direct payment is suitable for families where one or more children have been identified to have assessed care needs. This amount is paid to the child’s parents or their authorised or nominated person to be spent on the care and support needs outlined in the child’s agreed Care and Support Plan. A direct payments purpose is to increase choice and independence by giving families and carers more control over their child’s support arrangements. This payment amount is based on what the Council think it will cost.  The amount will be paid into a pre-paid account every four weeks. You can manage these payments on behalf of your child or use a payroll agency to manage it.

Managing your child's care with a personal budget

Who is eligible for a direct payment?

  • Those aged 16 and above who are assessed as needing services.
  • A person with parental responsibility for a disabled child
  • Carers aged 16 and over who are caring for a disabled adult

Parents, carers or nominated /authorised individuals must be willing and able to manage their child’s Direct Payments, either alone or with assistance.

Find out more information on arranging Direct Payments for adults – adult social care link

What can a direct payment be spent on?

How you spend your direct payment money is determined by your child’s assessment. Families of children and young people with special educational needs and/or disabilities may be awarded a direct payment to buy respite care or help with personal care following an assessment of need.

You may be able to use it to:

  • pay for support to help your child at home
  • employ a personal assistant to help your child with getting washed and dressed
  • buy your child’s care from a care agency
  • pay for a short term break, but not an overseas holiday
  • pay for activities
  • pay for small equipment to help your child

 Direct payments do not count as income and do not affect benefits like housing benefit or Universal Credit.

What can I not spend a direct payment on?

 

You cannot use your direct payment money to buy anything other than products or services that are agreed within your support plan.

Examples of misuse of a direct payment may include:

  • Anything that is illegal
  • Alcohol, tobacco, drugs or gambling (including bingo)
  • Long-term or permanent residential care
  • To pay a relative that lives with your child as their personal assistant, except in exceptional circumstances subject to prior agreement by the social work department
  • Withdrawing cash from an ATM

How is a direct payment received?

 The direct payment will be paid monthly into a pre-paid account set up by Havering in your name to ensure you have the money to pay for your child’s care when they need it. You can manage the account yourself or you can have a payroll agency or someone you trust to do this.

This account will come with a card which can be used to pay for any items that were agreed during the care assessment. The card works just like any other debit card, giving you the flexibility to make payments in person, over the phone or online.

The Council will be able to see the expenditure online, making it easier to monitor spend.  If you choose and it is appropriate, a payroll agency can help you manage the account especially if you have to pay a person you have recruited to support your child.

Personal Assistants

Many parents and carers use a direct payment to employ their own care worker such as a Personal Assistant (PA). We have a list of accredited PA’s and can support in identifying a suitable candidate. However, if you prefer to recruit your own PA, we can provide advice and assistance with recruitment. 

It is important to remember that if you decide to hire a PA yourself, you will take sole responsibility for them as their employer and will need to carry out DBS checks and ensure they have the right to work. You may also have extra responsibilities as an employer such as paying National Insurance.  A payroll agency can support with these responsibilities.

Find out more about personal assistants – Personal assistants | Help at home | The London Borough Of Havering

How can I apply for a direct payment?

Your child will need to have undertaken a care or education assessment, and if eligible for a direct payment, your child’s social worker, short breaks or education assessor will make a referral to the direct payments team.

If your child is already receiving long term assistance with their care from us but are interested in switching to a direct payment, please contact the child’s social worker in the first instance or email:

Directpayments@havering.gov.uk

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