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Ending a direct payment

person on the phone

There are circumstances where it is appropriate to temporarily cease or suspend the direct payment, or even terminate the direct payment facility. 

For example:

  • where the individual is no longer eligible for Council support
  • the individual has an extended period away from their main residence
  • loss of capacity of the individual or regaining capacity to consent to a direct payment
  • problems with the management of the direct payment, including breaching terms of the direct payment agreement
  • safeguarding concerns 
  • death of the individual

This decision could be made by the Direct Payment Recipient, the nominated person, suitable authorised person, or the Council.

The support plan will be revised to include what arrangements are to be made for alternative support to continue to meet eligible social care needs under the Care Act 2014.

The date of termination will be agreed in line with the new support arrangements.  Details of all payments will be needed to complete a financial audit and to ensure any outstanding commitments are identified. 

Due to the advance payments (see payment run schedule) it is likely that most accounts will have funds that are required to be returned to the council, as we have provided funds to purchase care and support that occurred after the end date of the account. A final audit would take place to determine the amount that is required to be returned and how this is to be paid. The final audit  will  also calculate whether the client contribution is up to date and whether any funds are owed to the council, or a reimbursement if the contribution has been overpaid.

Any contractual liabilities existing on the date of termination will be settled prior to agreeing a final balance. Social Care Workers will liaise with Finance Teams to ensure recovery of funds from prepayment accounts, traditional bank accounts or a managed account. 

If the Direct Payment has ceased due to death, the funds do not form part of the Estate and will need to be returned to the Council after all outstanding liabilities are settled.