Cash budget policy and funding review

Opens 12 May 2025

Closes 4 Aug 2025

Contact

Care Enabling Team

(10am to 2pm)

Monday to Friday

01706 923080

Care.Enablers@Rochdale.Gov.UK

Overview

The cash budget policy applies to all people who receive a cash budget from adult social care. The adult social care cash budget policy provides guidance around the management and administration of cash budgets (the council’s term for direct payments).  The policy aims to provide guidelines and a framework within which cash budgets operate, to ensure consistency of experience and processes.  The policy is due a review and update.

The changes we are proposing:

Proposal 1

Purchasing Insurance

What currently happens:

Cash budget recipients employing a Personal Assistant (PA) have a legal requirement to have Employers’ Liability Insurance. Currently the council only provides information and signposting on insurance providers to cash budget recipients. The cash budget recipient then purchases this service direct from their chosen provider, using funds from their cash budget allocation.

What we are proposing to change and why:

From reviewing cash budgets it has shown that some recipients are not purchasing the insurance in a timely manner, this means there could be risks that a person in receipt of a cash budget is not covered in case of an accident or redundancy, and not meeting the legal requirement as an employer. This can be very serious for the person in receipt of a cash budget and could lead to legal actions against them.

We are therefore proposing that the council work with an insurance provider who will be selected using what is called a procurement process, to provide the relevant insurance for cash budget recipients who employ a PA.  This will be detailed in the support plan and adult social care will pay the insurance costs directly to the provider outside of the cash budget allocation.

Alternatively, our policy would enable the cash budget recipient to source and select their own provider and put the insurance in place themselves if they wanted to do so.  In this instance we would provide the same funding as we would if we were purchasing this on behalf of the recipient with our chosen provider. 

There a number of benefits of this change in policy for the cash budget recipient:

  • You do not have to try and find an insurance provider if you don’t want to as this will be done and arranged for you.
  • You and your PA are covered immediately.
  • You do not have to worry about insurance renewals, as this will either be auto renewed or dealt with by the team purchasing the insurance on your behalf.
  • If we have a contract with one provider they will often offer a slightly cheaper premium.

Proposal 2

Purchasing Support (payroll/accountancy) Services

What currently happens:

Currently, where support services are required (payroll/accountancy services detailed below*), we provide an approved list of providers to the cash budget recipient and they can choose their preferred provider.  The cash budget recipient then purchases this service direct from the chosen provider, using funds from their cash budget allocation. However, people can choose to use a provider that is not on the list if they wish to.

*Accountancy providers will open up a bank account that is personal and individual to the cash budget recipient and manage this on their behalf, making payments to PA’s, HMRC, providers etc. Payroll providers supply cash budget recipients with time sheets to submit and generate pay slips for their employees. They process all HMRC returns on behalf of the cash budget recipient and let them know how much to pay them each month.

What we are proposing to change and why:

Where the recipient requires support services, they must be sourced from one of our approved providers.  An approved list of providers will be provided to the cash budget recipient and they can choose their preferred provider.  This will be detailed in the support plan and adult social care will pay the support service costs directly to the chosen provider outside of the cash budget allocation.

There are a number of benefits of this change in policy for the cash budget recipient:

  • Our approved providers have been through a quality assurance process to join our approved provider list, meaning we have confirmed they meet all requirements to be able to provide the services required in a cost-effective way. 
  • There are a number of providers available to choose from and we enable additional providers to apply to join the approved provider list annually.
  • Regular contract monitoring will be undertaken by our teams to ensure providers are meeting contractual obligations.
  • If we contract in this way we are more likely to achieve better value for money in the rates charged.

Proposal 3

Disclosure and Barring Service (DBS) Checks

What currently happens:

Currently we advise our cash budget recipients who employ PA’s to carry out a DBS check.  A DBS check enables cash budget recipients to confirm that their PA does not have prior convictions, which might indicate that they are unsuitable for a caring position. Cash budget recipients cannot apply for the Enhanced DBS check themselves. Instead they have to use an ‘umbrella body’ who are authorised to access checks.

What we are proposing to change and why:

We are still advising our cash budget recipients to undertake DBS checks as above, but where a cash budge recipient wants to undertake a DBS check they will need to request the council undertakes this on their behalf. The cost of the DBS will be met by adult social care outside of the cash budget allocation.

There are a number of benefits of this change in policy for the cash budget recipient:

  • The Council undertake a DBS check on behalf of the person in receipt of a cash budget, saving you the task of finding an organisation that can do this.
  • The DBS check will be funded from outside of the cash budget allocation.

Proposal 4

Changes to funding arrangements for PA’s:

What currently happens:

The funding of cash budgets largely follows the home care commissioned rate, with a small reduction to take out the profit element of the fee for people who do not use a provider. 

What we are proposing to change and why:

It is proposed that the funding is reduced to take out completely the cost of ‘running a business’ for those who employ a PA.  This would result in the rate changing from £22.25 to £16.67 per hour (25/26 prices) for new cash budget recipients who want to employ a PA.  It is acknowledged that the proposed reduction in PA funding may have a direct impact on some cash budget recipients and may reduce the care which they currently receive.  Therefore for existing cash budget recipients who employ a PA, ‘transitional’ funding will be applied for 12 months to ensure a more gradual reduction and the hourly rate is proposed to be £19.67 per hour. 

There are a number of benefits of this change in policy for the cash budget recipient:

  • The funding better reflects the actual cost of employing a PA.
  • It is more equitable, as it will take out the cost of ‘running a business’ for those who employ a PA.
  • It balances the requirement to ensure the funding available is sufficient to meet the needs of the entire local population with the requirement to meet the eligible needs of an individual.

 

Give us your views

This activity will open on 12 May 2025. Please come back on or after this date to give us your views.

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