Direct Payments and managed account services
Recipients of a Direct Payment must have a dedicated account for their Direct Payment funding to be paid into. This ensures that funds are managed separately from personal finances, maintaining clarity and accountability.
For individuals who are unable to manage the financial aspects of receiving a Direct Payment from the Local Authority or NHS, a third-party provider can be approached to manage these responsibilities on their behalf. However, even with a third-party service in place, you, as the Direct Payment recipient, remain responsible for ensuring that the funds are spent according to your budget and care/support plan.
Key consideration when choosing a managed account provider
Cost transparency: Understand the cost structure for services, such as:
- Administering your Direct Payment funding.
- Providing copy statements or any other reports related to your account.
Service provided: Confirm whether the provider will handle all related payments on your behalf, such as:
- Paying PA wages and associated employment costs (including pension contributions).
- Settling supplier invoices and any bills from other services like agencies or day care facilities.
GDPR compliance and data protection.
- Ensure that the provider manages your personal information in line with GDPR and other relevant financial standards or regulations.
- It’s important to choose a provider that is compliant with data protection laws, safeguarding your sensitive financial and personal details.