Direct payments, individual service funds, micro enterprises and self funders

Direct payments (DPs) and individual service funds (ISFs) in Cumberland are designed to give individuals more control over their care and support. They can be used to hire personal assistants, pay for care services, purchase equipment or arrange other support that meets their assessed needs. There are only a small number of ISFs across Cumberland. The council will be reviewing this to better understand the position.

If eligible, people can either manage the payments themselves or appoint someone else to manage this on their behalf. We use a prepaid card system to support DPs. These cards function in the same way as debit cards, allowing people to pay for services and equipment directly. We are pleased to see an increasing number of residents opting for DPs. This trend reflects customers’ desire for greater choice, control, and flexibility in how care services are delivered, which we hope will continue.

In order to support the care market and to increase the options available to individuals who choose to arrange their own care via DPs, we have worked to develop a number of micro enterprises to deliver highly personalised care across Cumberland. These small businesses have been established in areas where we have previously struggled to commission care (often rural and remote areas). We have worked with Community Catalysts to facilitate this.

For people who self fund their care, we have a duty to shape the care market that they purchase from. Research has shown that people who self fund their care often do so with lower level needs than publicly funded alternatives. It is likely that more people self fund their care in less deprived areas, although data on this is limited.

Market strengths

Growing number of micro enterprises and DP users.

Market challenges

Limited availability of providers within certain parts of Cumberland who are willing or able to accept DPs.

The closure of a number of charity and voluntary organisations has led to a reduction in the level of support widely available to individuals to manage their DPs.

Lack of accurate data on self funded market.