Personalisation/Direct Payments

Personal budgets

Historically once a Client’s needs had been assessed and deemed as qualifying for social care, social services would arrange for an approved care provider to meet the Clients agreed care needs. Social Services would manage the provider and ensure service quality was maintained and ultimately introduce a new provider should the need arise.

Under personalisation the Client’s needs are assessed and converted into a personal financial budget. The Client may have access to a broker who will assist the Client in liaison with their Social Services care manager to buy their care “on the open market”. The Client effectively contracts directly with the care provider with a private contract albeit with the Broker and the Social Service Care Managers assistance.

Clients who engage and pay carers privately are classified as employers and are treated in law exactly the same as any other employer.

This means they are liable to account for and are personally liable for PAYE, NI employers NI , statutory sick pay, statutory maternity pay, statutory paternity pay and are personally liable for the acts and omissions of their employees.