Council and democracy

Frequently asked questions - direct payments

Receiving Direct Payments means that you have choice, flexibility and control over your care arrangements. How you receive your care is up to you. You could use an agency or employ someone as a personal assistant.

We have compiled these frequently asked questions, which we hope you will find useful.

My care manager says I have to be 'willing and able' to accept Direct Payments, what does this mean?
The Government says you can have as much help as you need to manage Direct Payments, but you must remain in control of the arrangements. This is reflected in legislation which states that anyone wanting Direct Payments has to be able to agree to them and to manage a Direct Payment by themselves or with help. This is often referred to as being 'willing and able'.

Can I employ a relative?
You can employ relatives who do not live with you, there is no legal restriction on using Direct Payments this way. However, Hertfordshire County Council can make conditions about making Direct Payments which could affect who you can employ.
The Government rules say that you cannot employ relatives who live in the same household as you. However, if the county council feels this is necessary to meet your needs, an exception rule may be applied. (You will need to discuss this further and get a written agreement from the county council before this can happen.)

I cannot get to the bank or do not have the right documents to open a bank account, can I still have a Direct Payment?
The rules say that Direct Payment money should be kept in a separate account. If you have difficulty getting to the bank you could use telephone or internet banking from home. Or you could have a joint account with someone you know, but we would need their personal details too. You would need county council agreement to use a joint account, so ask us before setting one up. You may want to nominate someone to receive the money on your behalf, this would also require agreement from us, as we would need to be sure you are still in control of the arrangements.
The county council can supply a letter to a bank (endorsed by the British Banking Association and Department of Health) to help you open a bank account for Direct Payments if you do not have the identification needed, such as a passport or driving licence.

How much Direct Payment will I receive?
Hertfordshire County Council has a charging policy and you may have to pay towards the care you receive. This will be deducted from your contribution before we make the payment to you. The Direct Payments will usually be paid into your account every four weeks in advance.

How do I find out about paying tax and national insurance for my personal assistants?
The Leonard Cheshire Direct Payments Support scheme can help you. It offers free advice about employment contracts, liability insurance, advertising for carers, interview techniques and completing the forms for auditing. They can also explain about payroll systems (which you will have to pay for) if you want someone else to deal with tax and national insurance issues. You can contact them on 01462 439000. The charge for any payroll service needs to come out of your gross Direct Payment amount paid to you.

The tax office employers help line 0845 607 0143 can also provide assistance.

Can I organise my own public liability insurance?
As an employer you must have public liability insurance, and you can go to any insurance company for this. (For example: MJ Fish Insurance offers a policy specifically for employers in receipt of Direct Payments - their telephone number is 01772 724442. Hertfordshire County Council has no connection with this company and this is an example only, NOT a recommendation.)

Can my personal assistant claim money for petrol?
If a personal assistant uses their car while working for you, for example to collect shopping, you can reimburse them, but the payment must come out of the gross Direct Payment amount paid to you. Your personal assistant cannot claim for petrol to and from work.

Can I pay for my car insurance for a personal assistant to drive my car?
No, this is not allowable as an expense.

The agency I want to use charges more than the hourly amount of Direct Payment I receive, what can I do?
The Direct Payment is a fixed amount of money and you will not be given any more unless your care needs increase. However, you can use any other money you have available, such as any savings, or benefits. Or a relative or friend can add to your money if they wish, so that you can use the agency.

What sort of accounts do I have to keep?
Every three months you will need to send your bank statements to us, together with some simple records we will send you to complete. The support agency can assist you until you get used to what to do. You can submit the returns electronically if you wish, but you will still need to send the bank statements by post.

If my personal assistant and I have a disagreement about their work who can I go to?
As an employer you could seek advice from the CAB, a solicitor, (you would have to pay a charge for this yourself), or telephone the ACAS (Advisory Conciliation and Arbitration Service) helpline on 01455 852225. ACAS also produce several booklets on employment especially for small employers.

The county council has given me a copy of a risk assessment they have done, do I have to follow it?
It is your responsibility as an employer to explain to personal assistants how to use equipment in your home, and to give them a safe environment in which to work.

Who else may be able to give me general information and advice?
We advise you to contact our support agency, the Leonard Cheshire Direct Payments Support scheme.
Alternatively The National Centre for Independent Living (NCIL) can provide information about living independently, in a variety of formats. You can contact them on 0207 587 1177