Introduction to Direct Payments
Direct Payments are payments made to a disabled person (or a representative of their choosing) into a bank account or prepaid card. These payments are made in advance, usually every four weeks. They enable people to purchase and arrange their own support to meet their needs. The aim of direct payments is to give people more choice, greater flexibility and more control over the support they get.
People can use their direct payments to choose how to have their care provided. Many people choose a Personal Assistant (PA) as a solution to their care needs. Some choose to use a care agency.
Direct Payments can be made to people of all ages. For children and young people under 16, payments are made to an adult who has parental responsibility.
You can receive Direct Payments if:
- You have been assessed as needing social care services to support you with daily living
- You have a disability with social care needs
- You consent to receiving a Direct Payment and either you or your representative can manage the payment
Individuals who already receive support from Adult Social Care can choose to have a direct payment. Those who do not currently receive support can request an assessment.
The council will carry out an assessment of needs to determine whether any support services identified in the care and support plan can be provided via a Personal Budget, which is the amount of money they will pay to use towards any social care and support needed.
Receiving a direct payment will not affect any benefits and will not be counted as income in any assessments.
Support from Adult Social Care is not free. Leicester City Council charges adults for care and support services like home care to ensure everyone eligible accesses the help they need.
1. Prepayment Card
A prepayment card is a debit card linked to a virtual bank account where the council deposits your direct payment. The account is managed by a third-party company. If you use a prepayment card, you won’t need to submit any statements to the council.
Your direct payment will be paid four weeks in advance to your prepayment card. The amount deposited will be the agreed sum in your care and support plan, minus any required contribution. You will need to pay your contribution into the prepaid card account via a standing order, either weekly or monthly.
When using your prepayment card, you agree to:
- Keep your prepayment card safe and not let anyone else use it.
- Immediately call 0844 2255 729/033 080 0102 to cancel your card if it is lost or if you suspect it has been used by someone else.
- Only spend the money on the prepayment card as specified in your care package.
- Follow the separate terms and conditions set by the prepayment card provider, which will be sent to you with the card.
- Set up a standing order to pay the council your contribution towards the cost of your care.
2. Direct Payment to a Bank Account
With this option, money is paid into a UK bank account. This can be an account held by you or your representative, but it must be a separate account used only for direct payments transactions, clearly showing how the money has been spent on your support.
You will need to send statements and receipts to the council quarterly (or whenever requested) as evidence of spending towards your care and support needs.
Employment advice and guidance (EAG)
We offer independent information, advice and guidance to support you through the process of employing your own PA, assisting with:
- Recruitment of a PA
- Advertising
- Payroll service information
- Contracts of employment
- DBS (Disclosure & Barring Service) checks
- Reference checks
- Employers liability insurance
- Budgeting
- Support with completing auditing information
Recruiting a Personal Assistant
Purple Match : Our PA recruitment service
- Introducing “Purple Match” – our innovative service for connecting Direct Payment holders with suitable Personal Assistants
- Access to register of Personal Assistants
- Dedicated recruitment team assistance in finding ideal match
- Collaborative approach to understanding the unique requirements of a role
- Help in creating compelling job advertisements on “Purple Match” job board
- Submit your vacancy request here
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Vacancy sent to Purple Match Hertfordshire register
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PA’s on register submit interest
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Interested PA profiles sent directly to you
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Arrange interviews/meets directly with PA
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Additional secure PA information sent once job offer is made
e.g., NI number, date of birth, gender, completed document checks
Employed PA (PAYE)
- The Employer (direct payment holder) provides a contract that details the terms and conditions of employment including PA benefits and disciplinary procedures.
- The PA must perform their work personally and cannot send someone else to do this.
The Employer (direct payment holder) self directs the support they wish to receive from the PA in line with their care and support plan. - The PA is paid through Pay As You Earn (PAYE) and National Insurance payments will be made on their behalf by the PA Employer.
- The PA will receive statutory benefits, such as statutory sick pay.
The Employer (direct payment holder) must enrol eligible PA’s into a pension scheme and provide holiday pay. - The Employer (direct payment holder) will take out Employers Liability Insurance which can be paid for from the direct payments.
Self Employed PA
- Responsibility of the person receiving support to check self-employed status.
- The self-employed PA and the person receiving support mutually agreeing terms & conditions and how support is provided – Purple can provide a template Contract for Services.
- If determined not self-employed, then there may be financial liability (i.e. a Tax liability) for the person receiving support and the PA.
- Self-employed PA’s will have own Unique Tax Reference (UTR) number from HMRCs.
- There is an initial period, during which sole traders may not yet have a UTR number.
- The PA is not entitled to sick or holiday pay which may mean the person receiving support can pay the PA a higher hourly rate.
- Less administration as self-employed PA’s are responsible to pay their own Tax, NI, Pension and organise their own liability insurance. It’s advisable to ask for a copy this insurance.