Direct Payments Intended Use – Lincolnshire County Council

1. Do you allow direct payments as the default option (first choice) in all non-residential cases?

2. Are there scenarios where you don't offer a direct payment? If so, please can you list these scenarios and give the reasons why.

3. Do you allow upfront payments prior to the financial assessment and/or direct payment agreement being completed? If so, please can you confirm the criteria, thresholds, authorisation process and who makes these budget decisions.

4. Do you have a process/policy for issuing direct payments as part of a person's discharge arrangements from hospital? If so, please can you share this.

5. At what different stages would a direct payment typically be discussed? (assessment, support planning, review, hospital discharge pathways, transitions)

6. How do you reduce direct payment refusal caused by admin burden? (e.g., prepaid cards, payroll support, managed accounts)

7. What are your top 3 reasons people decline direct payments, and what have you changed to increase take-up?

8. What proportion of self-directed support is direct payments vs local authority managed (commissioned package of care) vs individual service funds?

9. What was your average annual cost for a direct payment vs local authority managed (commissioned package of care) vs individual service fund? (please provide figures for 2023-24 and 2024-25)

10. How fast is your direct payment set-up ‑end-to-end? (time from sign‑-‑off to first payment)

11. How do you handle direct payment set-up for people who can't/won't manage it themselves?

12. How do you measure people's outcomes and assess the benefits of direct payments in relation to other forms of self-directed support?

13. Have you adopted a Resource Allocation System? If not, how do you usually calculate the value of someone's personal budget?

14. Do you advise people of an indicative personal budget value in the first instance? If so, at what stage do you advise a person of this, e.g. after assessment and before care planning?

15. Do you agree direct payments for preventative support that doesn't involve applying Care Act eligibility criteria?

16. What proportion of your direct payments do people use to pay for

micro-providers, PAs and day services/carers/short breaks? (please provide the breakdown as percentages for 2023-24 and 2024-25)

I can confirm that the information requested is held by Lincolnshire County Council. I have detailed below the information that is being released to you.

1.A person must be provided with appropriate information and advice in order to be able to make a request for a Direct Payment. It is therefore not the default option.

2. Yes, as the Care and Support (Direct Payments) Regulations 2014 Regs have exclusions. The exclusions are set out in:

Regulation 2 – “Cases where a local authority must not meet needs by making a direct payment”

Schedule 1 – “Adults Whose Needs the Local Authority Must Not Meet By Making Direct Payments”

The Care and Support (Direct Payments) Regulations 2014

Other scenarios where the Local Authority would not offer a Direct Payment are;

If the person does not consent to a direct payment, or lacks capacity to request a Direct Payment there is no suitable person to act as authorised person.
If the person or nominated/authorised representative is not judged capable of managing a DP — even with support.
If the LA does not consider DP an “appropriate” way to meet needs (a lawful test under the Care Act and Regulations).
If a Direct Payment would create unacceptable risk, safeguarding concerns or misuse risk
Where the proposed use of the Direct Payment would be unlawful or outside the Care Plan
Where the requirements in conditions or monitoring cannot be met
The DP would not represent good stewardship of public funds
Where the DP would have to pay someone who is prohibited (Regulation 3). Direct payments normally cannot be used to pay certain close relatives living in the same household, unless the council decides it is necessary under exceptional circumstances, therefore may not allow the DP if this would have to be used to pay this family member if the LA does not believe the exception applies.
Where the person does not actually request a Direct Payment or understand the consequences of receiving a Direct Payment.
Where the Local Authority can provide a commissioned service in a cost effective way, which does not restrict the flexible manner in which the person needs to receive their care and support.

3. A temporary NIL assessment can be agreed by Head of Service in exceptional circumstances. Criteria would be based on a case-by-case risk assessment of the situation if Direct Payments were not able to start before financial assessment is completed. Once the financial assessment is completed, the Direct Payment will then be adjusted to reflect any personal financial contribution, which will also be backdated to the start of the Direct Payment. The Direct Payment Agreement would need to be signed and returned before any payment is made.

4. Unless a person is already in receipt of a Direct Payment, it would not usually be possible to set up a Direct Payment in order to facilitate a timely discharge from hospital. However, information and advice about Direct Payment should be given for the person to consider once discharged, including an offer to refer the person to the Direct Payment Support Service (Penderels Trust).

5. all of these stages, and when a person requests a Direct Payment. At assessment stage once eligibility has been determined and the person is found to be eligible under the Care Act 2014.

6. A range of payment methods are discussed with the person to find which would be most beneficial in order to enable choice and control, maximise the person’s independence in managing the Direct Payment, and providing enough support to the person to manage the Direct Payment well. Payment methods are Prepaid Card, Virtual Wallet, Own Bank Account, Third Party Supported Account (including Suitable Person Account). Payroll services are available through Penderels trust and Virtual Wallet. People can nominate a suitable person to support them with managing the Direct Payment. Direct Payment audits are proportionate

7. We do not hold this information in reports. Reasons declined may be recorded in the person’s record but it is not reportable.

8. 39.6% of people who use services receive Direct Payments. LCC do not have Individual Service Fund scheme in place.

9. Average annual cost of Direct Payment for 2023-2024 was £15,538.76.

Average annual cost of Direct Payment for 2024-2025 was £12,680.45

LCC do not have Individual Service Fund scheme in place.

10. LCC have a target of 10 working days from all the required paperwork being in place, as this is then within LCC's control. All the other steps are variable as the Financial assessment requires the person to engaging in this process, as well as signing and returning the Direct Payment Agreement and payment method paperwork where applicable. If a person is already receiving a chargeable service and has an existing assessed financial contribution, this can reduce the set up time.

11. If a person is unable to manage the Direct Payment themselves, we allow a suitable person to be identified that will manage the Direct Payment on their behalf. Practitioners support the person / suitable person with the set-up by explaining the process and what the person needs to do. If a person ‘won’t’ manage the Direct Payment, this would suggest they do not wish to have a Direct payment and we would therefore deem this as not appropriate to set up, unless the person wishes to nominate a suitable person to do this on their behalf.

12. Reviews with people who use Direct Payments involve conversations around if outcomes are being achieved, including how the Direct Payment is helping to achieve these. Outcomes are identified during Care and Support planning, and are then measures as to whether they are Fully Met / Partially Met / Not met.

13. LCC use a Ready Reckoner to generate an indicative planning budget. The Ready Reckoner Approach reflects resource requirement not underlying need. So, hours selected in the ready Reckoner must reflect gaps, or unmet areas of need which require a resource to meet them. The practitioner's estimation of the number of hours needed to meet unmet eligible needs in a range of areas is multiplied by the cost per hour or per night the authority pays for those services.

14. Transparency: The Council make their allocation processes publicly available as part of their general information offer. This will ensure that Adults and/or their representatives fully understand how the personal budget has been calculated, both in the indicative planning amount and the final personal budget allocation.

Timeliness: It is crucial when calculating the personal budget to arrive at a planning amount which can be used to inform the start of the care and support planning process. This budget should be shared early in the process, so that the person with care and support needs understands from the start what sort of plan they can put together. Receiving a timely indicative planning Budget is vital to ensure the person’s full involvement in the process.

Once the planning amount has been calculated, it will be recorded in the person’s Care and Support Plan for discussion of how outcomes will be met thus establishing the actual budget.

15. LCC have the discretionary power to provide formal support to people who do not meet Care Act eligibility. This is a broad general power. LA may meet needs even if they fail the eligibility criteria test, for example:

Preventing escalation to eligible needs
Short‑term support to avoid a crisis
Helping someone maintain independence where needs are relatively low
Supporting a person whose situation falls outside the formal criteria but has clear wellbeing risks
To meet needs of carers even when the cared‑for person does not have eligible needs (s.19(3)).Carers have independent rights. A LA may support a carer even if the person they care for has no eligible needs.

16. LCC have data for 01/02/2025 to 31/01/2026 . The figures reflect the intended use of the Direct payment at set up stage.

Agency Support (non-CSL) 31.0%

Personal Assistant 18.5%

Day Services 15.6%

Transport and Mileage 8.9%

Carer respite 8.4%

Other ongoing costs 6.4%

Community Supported Living 6.2%

One off costs 5.0%

Please note – a person may use their Direct Payment for one or more of the above

15230129

27 January 2026

23 February 2026