Managing an account on your behalf

Third-party managed accounts

Managed accounts could be easier for you because it provides a third-party to support you with managing the financial element of the direct payment. You may have difficulty accessing a bank account, or it could be that you may have had difficulty with managing the financial element of direct payments.

If a managed account is selected, we pay the direct payment funds into the managed account instead of setting up a prepaid card account on your own direct payment bank account. All payments such as personal assistant (PA) wages or agency invoices are made on your behalf by the support organisation providing this service. They also provide the financial information when required for monitoring purposes to the council. Penderels Trust currently provides this service.

A nominated representative can act on your behalf to either receive the direct payment and/or take on the employment responsibility. It is not recommended that any person working as a PA is also made responsible for handling the finances. They could not be your nominated representative. This is one example where a managed account could provide the solution to help you manage the financial arrangements, but you would still need someone to assist you with managing the arrangements for the care provision if you were unable to do this.

Many examples exist where arrangements have been successful, such as a person being able to choose the personal assistant they want but not understanding the complexity or wanting the responsibility of handling the finances. In this case, a trust could be responsible for these elements.

If you are deemed not to have the capacity to consent to a direct payment, the payment can be made to an appointed authorised person. The authorised person has access to the same support and information you would receive.

The difference between a standard direct payment and a managed account

Standard direct payment Managed account
The direct payment is paid directly to you, an agent or the authorised person. We will pay the money directly to the managed account on your behalf.
Usually, you have to set up a separate bank account purely for the direct payment. We then pay into this account. We pay the direct payment into a managed account bank account.
You are responsible for paying the personal assistant and any other invoices/cheques/standing orders/direct debits which relate to managing the direct payment.

You submit all details of the PA’s timesheets to the current payroll provider. The current payroll provider will then deal with the administration and pay wages directly to the PA.

An agency/provider will send invoices to the current managed account provider and this will generate the payment of the relevant invoice.

You will be invoiced for your contribution every 4 weeks. You will be invoiced for your contribution every 4 weeks.
You are accountable for all expenditure and make sure you send the monitoring returns to the council. The current managed account provider will submit monitoring returns as required by the council.

Acting as an authorised person

We have a duty to offer direct payments to people who lack the mental capacity to consent to them. An authorised person is put in place to receive and manage payments on their behalf.

We follow legislation and guidance on how to appoint and you must meet all the criteria before being appointing.

You must be willing and want to act as an authorised person and make decisions on behalf of the person who lacks capacity in their best interests.

You should involve the person who lacks capacity as far as reasonably practicable and give them as much control and independence as possible.

You may not use the direct payments to secure services from a:

  • spouse
  • civil partner
  • partner of the individual
  • close relative
  • spouse or partner of a close relative of the individual who is currently living in the same household without our permission. The authorised person must first speak with us and seek agreement in these circumstances.

There may be occasions when we decide that it is necessary for the authorised person to use direct payments to secure such services, however, such situations are likely to be exceptional and a best interest’s policy is adopted.

You will receive your direct payments on a prepaid card account or into an agreed bank account and provide us with the information required to do this.

If you are a corporation or unincorporated body, you must ensure that the money can be shown as separate to any funds you may hold for any other person or body.

You must inform us of any changes or difficulties, or as soon as you believe the person has regained capacity. If you decide to give up acting as the authorised person, you must contact us as soon as you no longer want to carry on in this role.

If the person you represent has fluctuating capacity, you must ensure during periods when they regain capacity that you involve them as much as practicable in decisions.

Nominated person

When someone has the mental capacity to consent but needs additional support, direct payments can be made to a nominated person who can help the person to manage the direct payments.