Option 1 - Direct Payment

What is a direct payment?

A direct payment is one of the options available through Self-Directed Support. 

A direct payment gives you the flexibility, choice, and control to manage your individual budget to purchase appropriate goods, activities, and services. You make all the decisions relating to which of these are best suited to meet your assessed support needs and outcomes, including how and when you will be supported.

An agreed personal budget is paid to the individual to enable them to purchase the required support and services to meet their agreed outcomes. This option is only suitable where an individual has capacity to manage the budget and support, or where legal powers (Financial and Welfare Guardianship or Power of Attorney and Guardianship) are in place and is managed on the individual's behalf. This option offers the opportunity to employ Personal Assistants directly.

Who is eligible for a direct payment?

Eligibility criteria are used by councils to determine whether a person assessed as needing social care requires a service to be put in place to meet those needs. Further information about eligibility criteria can be found Assessment, Eligibility and Financial Contributions

Unpaid carers are also eligible for direct payments if they have been assessed as needing support.

There are also some circumstances where you may be eligible for a service but not eligible for a Direct Payment. This is because there are additional safeguards in place for you and the Council because of the unique nature of a Direct Payment. More information about these circumstances can be found in our Frequently Asked Questions section.

Your assessment and support plan

Once your eligibility for a social work service has been confirmed, an outcome-focused assessment will evidence your assessed needs. A Support Plan will then be completed by you and your practitioner which will focus on what outcomes you want to achieve and how you hope to achieve them. As part of the support planning process, your practitioner will advise you how much your individual budget is, as it should be very clear as to what monies are available and how these can be spent to meet your agreed outcomes. If you have any queries about the assessment and support planning process you should contact your named practitioner.

Your individual budget

The Council will inform you of the budget that is available for you to spend on meeting your agreed outcomes. Your budget will usually be administered every four weeks, in advance, but this may differ depending on your agreed outcomes. Individual budgets will vary from person to person due to individuals having different needs, circumstances, and preferred outcomes. Your individual budget will be subject to review on an annual basis.

Self Directed Support: Personal Budget

Managing your direct payments

Anyone requesting a direct payment has to set up a new bank account to manage the funds OR there is the option to have financially managed accounts held by " Lothian Centre for Inclusive Living" where  Lothian Centre for Inclusive Living payroll services open an account and hold the money for individuals who cannot handle the money themselves.

Lothian Centre for Inclusive Living offer a payroll service to individuals, this is not mandatory for people to use but many do. Your social worker can set this up for you. Lothian Centre for Inclusive Living Payroll Service offer two types of service:

1. They do the payroll every month, the service user holds the bank account with the money and must submit time sheets for the Personal Assistant.   Lothian Centre for Inclusive Living calculate the pay and provides a payslip, working out the pension costs and HMRC costs for tax and National Insurance; West Lothian Council will cover the cost of the Lothian Centre for Inclusive Living fee as part of the direct payment.
2. They offer financially managed accounts, where they open a bank account for the individual, and West Lothian Council sends the quarterly payment to them to manage. They pay the Personal Assistant every month based on the Timesheet provided by the Personal Assistant.

Quarterly returns are expected from  Lothian Centre for Inclusive Living for financially managed accounts and from individuals who manage their own accounts detailing the spend.

The Contracts team contracts with  Lothian Centre for Inclusive Living for their services.  Lothian Centre for Inclusive Living also help individuals recruit for Personal Assistants, provides advice on annual leave entitlements and helps create contracts for Personal Assistants.

Further Information on  Lothian Centre for Inclusive Living services can be found on their website Lothian Centre for Inclusive Living Website (opens new window)

Contributing to your care and support

Children don't make contributions, only adults.  

A non-residential financial assessment will be completed, where applicable, to find out if you should make a financial contribution towards your support. Your practitioner will help you to complete the relevant form. Paying your contribution, if applicable, is your responsibility and you must pay this to to ensure that your goods, activities, and services can be paid and to maintain your contingency amount.

If a contribution is required and the adult receives Self Direct Support Option 1, then the contribution amount will be taken off from the quarterly payment.  The individual is then required to top up their direct payment bank account or pay into the Lothian Centre for Inclusive Living bank account.

If and adult receives Self Directed Support Option 4, they will be invoiced annually for their contribution amount.

Financial monitoring

All allocated funding must be accounted for. Monitoring of income and expenditure will be jointly undertaken by your allocated practitioner and the Self Directed Support team and surplus monies will be reclaimed by the Council.

Unpaid Carers and option 1

Carers can either receive direct payments for their own support as a carer, or they can manage the direct payment on behalf of the person they care for. They might also do both. Most people who receive direct payments will be able to manage them if they have sufficient understanding and memory, but if they lack capacity then the carer, or someone else acting on the person's behalf, may have to manage the direct payment for them. In this situation, if you are also receiving a direct payment for your own support as a carer, the money will have to be kept in a separate bank account.

Carers who receive direct payments in order to buy support for themselves are expected to account for the money in exactly the same way as anyone else who receives direct payments. The money will be paid into a specific bank account and you will have to keep records of how the money is spent. The Council will regularly check that the money has been spent on meeting your outcomes.

In order to manage a direct payment on behalf of someone who is over 16, you will need to have guardianship or Power of Attorney and Guardianship. 

Young carers and young people

Children under 16 cannot receive direct payments in their own right, but they can be paid to their parents or guardians who will manage them on their behalf. If the young person is caring for their parent or guardian, the parent or guardian can still manage the direct payment for the young person as long as they are capable of doing so.

Young people aged 16 and over are able to have direct payments for themselves as young carers and also manage direct payments for the person they are caring for.

Frequently Asked Questions about Direct Payment

Can I employ my own staff?

Yes, you can employ personal assistants when you choose a Direct Payment. This is the only Self-Directed Support option which enables you to employ your own staff.

Can I contract with a self-employed worker?

Yes, you can use the services of a self-employed worker. You are not employing these individuals, but you are instead entering into a contract with them. You will be asked to complete a disclaimer where the worker must provide you with evidence of their self-employed status from HMRC.

Can I use an agency?

Yes, you can also use the services of an agency/care provider. You can speak to as many providers as you wish and then choose the one that you believe will be the most personalized, flexible and effective in meeting your needs and fulfilling your outcomes.  If the agency is providing you with personal care or support, then it must be registered with the Care Inspectorate. You may want to choose a provider/care agency who can meet your assessed outcomes, but the total cost of the support will exceed your individual budget. If this is the case, then you must pay the additional sum yourself.

You can get information and advice around Self Directed Support at any time by contacting our advice service providers. Self Directed Support: Getting Help with Decisions