Direct Payments - for or against?

Jellihead
Jellihead Community member Posts: 29 Contributor
edited November 17 in Everyday life

I will be attending an LA meeting soon, representing self-directed support using Direct Payments. Any suggestions as to what works, how well your LA administer it and are you encouraged to use it. For example this is on my LA website relating to Direct Payments:-

"It’s important you read the terms and conditions that come with the agreement because you are taking responsibility for managing your own care and using the money for agreed purposes. If you spend the money on something to which we have not agreed, you may be asked to pay the money back.

You may have decided to become an employer for a personal assistant and being an employer has responsibilities for the employee’s welfare and fair treatment, along with having to ensure that tax and pension contributions are made."

If that doesn't put you off I have more that will- the conference is laughingly about why the LA has not had a good uptake of those wanting to use Direct Payments?

"you may be asked to pay the money back" I find that sentence quite threatening, or maybe they will just let you carry on spending and then wait until hundreds of pounds are owed - Carers Allowance?

It is the responsibility of the self-employed person, who you will employ to ensure that they pay their own taxes and pension contributions. That comes with being self-employed. I was self-employed for years before I retired, maths is my worse subject, if I can do it anyone can.

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Comments

  • whistles
    whistles Community member Posts: 1,778 Championing

    I have direct payments and my council were able to support me through the process.

    You will have a care package. A person or persons provides that care, the money is for the care. It's the councils money, so yes you will be asked to provide proof of what you are spending it on and pay it back if you do not use it for what had been agreed.

    The only thing I will say is they may say you quality for xx hours a week, but they don't actually pay you enough to employ anyone for those hours!! Most PA etc start at £15 per hour because they are self employed. They sort their own tax. If you get pip care you can use that to top up to the hours you need/qualify for/have more hours. If you don't then you can't.

  • Jellihead
    Jellihead Community member Posts: 29 Contributor

    Thanks Whistles, so glad that your LA supported the process. Was that someone from Social Care or was it an independent company?

    Sadly some LA's try to take off money that has been allocated for other uses, for example, gym membership, even though it is in the care and support package. However, it's important to know that unless the person has improved dramatically since the last assessment ie no longer overweight, no longer has osteoarthritis etc then LA's cannot take the funding away.

    You are right PA's have to provide their own tax, insurance, etc but that is the responsibility of the PA and not the person receiving the funding. I think this is a stumbling block for LA's as they would prefer that the person receiving the funding takes on the responsibility of being an employer. This is probably why Direct Payments are so unpopular as it is another role for the cared for, carer etc to take on. Which then goes against the Care Act 2014 of giving independence and choice.

  • JW77
    JW77 Community member Posts: 108 Empowering

    My experience if direct payments.
    I wish my LA had provided a 10 point idiot's guide as to how it works.

    I directly employed a PA, but there was no real guide as to who to contact etc.
    They never told me the council changed payroll providers for instance.
    The most important thing is to keep a record of documents, and hours.
    The 'request' to return money is really more aimed as a safeguard for the council I think. If they're paying DP and you're between PA's or looking for a new one they don't want people stacking up thousands in an account. So if you're ever IN that situation, do talk to the DP officer if there is one. I think in my case it was supposed to be around £500 in the account, going much over I had to pay back to the council.

    DP is NOT means tested, and should not affect other benefits (although try telling the idiots at the DWP) or 'fraud' office. Many councils are so hard strapped that they will try and lever out, and say we can only provide for personal care..

    Your LA's council website SHOULD have some info at least.

    Good luck

  • whistles
    whistles Community member Posts: 1,778 Championing
    https://forum.scope.org.uk/discussion/comment/940061#Comment_940061

    Someone from social services helped to set it all up. It's possible that it's had a low uptake as people haven't heard of it, or unless you are in contact with adult social care you wouldn't be told about it?

  • igglypop93
    igglypop93 Community member Posts: 16 Connected

    I opted for direct payments but i have a managed account through Penderel's trust. So they deal with the payroll and working out the tax etc. They also created the contracts and had a site to advertise on to help me find someone. It's gone OK so far. Found a really good carer but it's definitely been hard to get information sometimes as you just don't know what you don't know. And I've found if I don't ask the exact right question they don't give me a heads up about things. E.g my direct debit didn't get set up until several months afterwards when I raised it and they'd just assumed it had been done (not sure how as there had never been a conversation about money at that point except for me filling in forms).

    If I'd had a less patient carer then I imagine the issues with HMRC not getting full info passed on my penderels would have caused more issues.

    I'd say that direct payment is daunting because it's being responsible for someone's livelihood. The people I was interviewing were not self employed, they would be my employees technically, even though penderels manages the money.

    Without penderels handling the money (even with all the hiccups) i wouldn't have been capable of working everything out and staying on top of it each month. So I'm very grateful that option was available as it let me hire a PA but also not have to have all that responsibility added when I'm barely able to remember to take my meds most days, let alone having someone's finances in my control.

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