People need more than a good plan – they need the means to make it happen. This section explores the different ways people can fund their care and support, and how to support decision-making around finances in inclusive and empowering ways.
About funding for care and support
When someone is assessed as needing care and support from their local authority, they may be eligible for funding to help to meet those needs.
If the council agrees to fund – or part-fund – someone’s care and support, they must tell the person what their personal budget is. This is the total amount available to meet the needs identified in their care and support plan.
If someone pays for all their own care without council support, they are often called a “self-funder”.
Different ways that a personal budget can be managed
A personal budget can be managed in one of three ways.
At Think Local Act Personal, we believe that it is vitally important that everybody is given the choice over how they manage their personal budget, and that these choices are properly explained.
People should also be able to choose a combination of these options if that works best for them. For example, someone might receive a Direct Payment for one part of their care and a Managed Budget for another.
Managed budgets
Summary: The local authority holds the personal budget and arranges services on the person’s behalf.
Pros:
Less administration for the person or their family.
The council manages the legal, financial and practical details.
Cons:
Limited choice over who provides support and when.
Less personalised, more ‘off-the-shelf’ support.
Some people find this option easier to manage, especially if their needs are being met by existing services.
Direct Payments
Summary: The person receives their personal budget as a cash payment and uses it to arrange their own care and support.
Pros:
Offers the highest level of flexibility and control.
Can choose your own personal assistant(s) or services.
Enables creative, personalised support.
Cons:
Comes with responsibilities (e.g. managing the budget, record-keeping).
May feel daunting to manage without support – though help should be available.
People who can’t manage a Direct Payment themselves can still consider this as an option, by appointing a trusted person (known as an Authorised Person) to manage it on their behalf.
Individual Service Funds
Summary: The person chooses a provider to manage their budget and deliver support in flexible, person-centred ways.
Pros:
Greater choice than a managed budget.
Less responsibility than a Direct Payment.
Allows for flexibility and tailored support with provider support.
Cons:
Not all councils offer ISFs.
Still limited to providers offering ISFs and what they can deliver.
ISFs can be a good option for people who want more choice but don’t want to manage all the details themselves.
