Self Directed Support Factsheet – 5 

Direct payments and personal budgets: receiving the right amount

Deafblind people and families who use direct payments and personal budgets have reported that they can be offered varying amounts. It can be difficult to make sure that councils understand why it may cost more to meet the assessed needs of deafblind people. This factsheet should help you to make sure you receive an amount of money that will be enough to meet your assessed needs.

How much money should you receive?

You should be clear about how much it would cost for you to buy the services you need before you agree to the amount that social services decide on. The amount must be enough to cover the costs of purchasing services that meet your needs. The direct payments guidance states:

‘…the direct payments should be sufficient to enable the recipient lawfully to secure a service of a standard that the council considers is reasonable to fulfill the needs for the service to which the payments relate.’ 

The amount must also cover other costs, for example costs related to employing people.

How can you make sure that the amount will be enough?

You may only be able to think about this once you have had your assessment and your eligible needs have been identified.

• Think about how much it could cost to meet your needs – try to find out about local people who could support you and what they charge.
• Present your findings to your social worker and explain the amount that you think you will need to be able to meet your assessed needs.

Hourly rates

Some councils work out how much they will give you based on the hourly cost of support. If you are using staff to meet your needs, make sure that the hourly rate of direct payment is enough. This rate will need to cover the salary for your staff as well as other associated costs (see below). 

If you have more specialist support needs, your council might offer you a ‘higher’ hourly rate. But this still might not be enough to recruit staff with the right skills as well as cover additional costs. If it is clear that the rate will not be enough, then it can be raised.

Resource Allocation Systems for personal budgets

If your council is offering you a personal budget, they will probably use a ‘resource allocation system’ to decide how big your budget should be. This is usually a questionnaire with a series of questions with multiple choice answer. Points are awarded according to your answers. They are added up and converted into an amount of money. The Government has given clear guidance to councils to tell them that the amount they work out using this system must be flexible. So if the money is not enough to meet specialist needs, it can be increased.

It is very important to remember that even when councils are using a resource allocation system, deafblind people should still receive a specialist assessment.

 
Covering ‘all reasonable associated costs’

Councils must make sure that the direct payments you get cover all reasonable costs involved in receiving the service you need and cover the cost of using staff lawfully. The guidance says:

‘The particular costs involved will vary depending on the way in which the service is secured, but such costs might include recruitment costs, National Insurance, statutory holiday pay, sick pay, maternity pay, employers’ liability insurance, public liability insurance and VAT.’ 

Do not forget to include the cost of covering for staff if they are sick or on leave and recruiting new staff if staff leave. You should also ask about training for staff. Training someone up could be the only way for you to receive the right support, especially with communication and mobility. In this case it may be possible to include the cost of training in the amount you receive. Your local direct payments support service should be able to advise you on making sure all costs are covered.

VAT

Check if any of the support you want to pay for will charge you VAT. If so, make sure the amount covers this cost. 

Time for one to one meetings and training

Think about time when you can meet with staff, perhaps in a ‘supervision’ or one-to-one meeting. Check if the time to allow for this is costed into the amount. If staff attend training courses, you will need to pay them for their time and possibly cover the cost for support from a replacement. Check if this is included.

 
Annual increases

The cost of the services you receive could increase annually. This could be because of inflation or pay rises for staff who have stayed a sufficient amount of time.

If your needs change, the cost of support may increase

It is important to remember that costs may increase. Reasons for this may be:

• If staff are sick, on holiday or leave the job, you may have to advertise, recruit and train new staff or contact an agency for staff cover (using agencies will probably cost more);
• If you have to use staff from further away, they may charge a higher rate;
• If your needs change, for example you may need to start communicating with hands-on sign instead of BSL, you may need to find new staff or provide training for existing staff.
• As children grow and develop, services who support them may need to develop new skills or new services may be needed to support children in new activities. 

What happens if your council says there is a fixed ‘higher rate’ or maximum amount of direct payment or personal budget?

Be prepared to question the amount that your council offers you, even if they say it is the higher rate, rate for ‘complex needs’, or the maximum. The guidance states:

‘There is no limit on the maximum or minimum amount of direct payment either in the amount of care it is intended to purchase or on the value of the direct payment.’ 

This means that your direct payments must be enough for you to be able to purchase a service that meets your assessed needs. 

Case study: receiving the right hourly rate

Jonathan is a young man with Usher. He uses BSL. He wanted to receive direct payments as he thought this would allow him the flexibility to receive support when he needs it. At first his council was only offering him their ‘higher’ rate of direct payment. This was £13 per hour. However, to receive the support he needs and cover associated costs, Jonathan needed a direct payment of £25 an hour. This would allow him to recruit a communicator guide with BSL skills, as well as skills in guiding and deafblind awareness. Jonathan complained using his council’s complaints procedure but this was not successful. After sending the council a letter from a solicitor and a long wait, Jonathan has been allocated the right amount of direct payment.

Case study: moving from direct payments to a personal budget

Lisa has been receiving direct payments for 7 years. Her council is now offering personal budgets to all adults and it uses a resource allocation system to work out how much a personal budget should be. When Lisa’s social worker uses the resource allocation system, the amount of personal budget comes out as less that the direct payments she currently receives. Lisa’s social worker reassures her that if the amount is not enough, it should be flexible. They look at the kind of support Lisa requires and work out that the amount will not be enough. The council agrees to increase the amount so that Lisa can meet her assessed needs by purchasing the right kind of support.

How much money should the council give to allow you to purchase your preferred choice?

Councils only have to provide a direct payment that meets the reasonable cost of you receiving the service you require. They will estimate what the cost should be and should tell you if they think your idea on how to meet your needs seems too expensive. The guidance states:

‘A council is not obliged to fund associated costs if, taking into account the user’s assessed contribution, the total costs exceed the council’s estimate of the reasonable cost of securing the service and if a service of the requisite standard could in fact be secured more cost-effectively in another way.’ 

This means that although the council should not tell you exactly how to meet your assessed needs, they are allowed to object if they think the cost of your preferred service is unnecessary to meet your needs. 

If you require more expensive specialist services, you may have to clearly explain the cost of services you wish to buy through direct payments. You must be very clear why the service will cost the amount it does and why you need the specialist service. As a deafblind person you are entitled to a specialist assessment of your needs and this should help to make a case for the cost of specialist support. 

What to do if you are unhappy about the rate of direct payments you are offered

If you are not happy with the amount of direct payment you are being offered you can take a range of informal and formal steps. See Sense’s factsheet ‘Direct payments and personal budgets: what are your rights?’

March 2010