Guide to direct payments for parents and carers

Find out about direct payments for children and young people 0 to 18, who can have them and how they can be used.

Using your direct payment to employ a carer or personal assistant

If you want to employ a carer yourself, then you will become an employer and must take on all the legal responsibilities this entails.

Recruitment

You will be responsible for:

  • advertising
  • creating a person specification and job description
  • interviewing

Pre-employment checks

You will be responsible for:

  • checking someone has the right to work in UK – you must have evidence of your carers right to work in the UK and keep a signed dated photocopy, for example a UK or EEA Passport, visa or work permit
  • taking up references
  • getting a Disclosure and Barring Service (DBS) check (formerly CRB check). It is the policy of Hammersmith & Fulham council that anybody working with children, including those paid through a direct payment, have a satisfactory check through this scheme. However, a conviction does not necessarily bar staff from working with children. If a conviction is disclosed a risk assessment is completed to inform decision about whether to employ the individual.

Setting up as an employer

You will be responsible for:

  • offering a a contract to your carer, called a Statement of Employment. This details what you can expect of your carer and what they can expect of you. You must have two copies, one for you and one for your employee which are signed by both of you. Templates are available to help you with this
  • buying employer's liability insurance. H&F can arrange this for you and the cost of your cover is deducted from your 4 weekly payments

Being an employer

You will be responsible for:

  • registering as an employer with HM Revenue and Customs (HMRC) and making HMRC contributions (tax and national insurance) on behalf of your employee. You can register with a payroll service who will do this on your behalf. You can use your direct payment to pay for the payroll service.
  • providing and keeping timesheets and payslips. Many payroll companies will support you with this.
  • providing a pension to eligible employees. Many payroll companies will support you with this.
  • providing paid annual leave – all staff, regardless of the hours they work are entitled to paid annual leave. Currently this is 5.6 weeks pro rata annually. Many payroll companies will help you to track your Annual Leave obligations. You will need to budget for alternative support while your carer is on leave.
  • paying staff through bank transfer or cheque – cash payments are not permitted. Many payroll companies provide this as part of their service.
  • keeping employment records for seven years (many payroll companies will keep these records).
  • making health and safety arrangements.
  • arranging training for your employee as necessary. Training can be accessed through The Stephen Wiltshire Centre, please talk to your worker for further details.

If the carers you employ earn less than £113 per week over the course of the year (correct as of March 2018), have no second job and are not receiving any taxable benefits, you may not have to register as an employer with HMRC. Please discuss this with your social worker.

Disclosure and Barring Service checks

If someone is registered for the update service and provide the details, they will not need to complete a whole new check.

If you are employing someone through an agency, the agency must complete this check.

The council will complete the check for anyone you employ through direct payments to work directly with your child. If the worker has a satisfactory DBS completed elsewhere within the last three years, a risk assessment can be completed and if appropriate they could start work whilst H&F complete the new check.

The council will also pay for DBS checks. This funding will not come out of your direct payment account.

Before direct payments workers can be employed, your social worker must be provided with the DBS certificate number and date of issue, or update service reference number so they can review the results of the check.

Checks are completed for all workers paid through direct payments including family members, however in some special circumstances a waiver might be possible if agreed by the service manager.

A risk assessment must be completed to inform decision whether to employ the individual if any convictions are identified through the DBS check.

If you don't want to employ a carer yourslef

If you don't want the responsibility of becoming an employer, you can purchase the services of an agency that will provide you with a worker for your child and organise all the recruitment, pre-employment checks, employer set up and take on the responsibilities of being an employer, including completing DBS checks. However, this may be more expensive than employing a worker directly.

The agency should not be one that charges a fee for introducing you to potential carers as the direct payment money cannot be used to pay for this.

If the agency provides personal care to your child, they must be registered with the Care Quality Commission (CQC).

I have found a carer who wants to provide services as self-employed

If a carer is self-employed, you will not be their employer and do not have to meet employers' responsibilities, other than the DBS. However, most carers will not meet the HMRC requirements to be classed as self-employed.

Check if a carer meets the requirements to be classified as self-employed on GOV.UK

You have a responsibility to obtain evidence from any person you employ as self-employed that they are registered as self-employed. Self-employed workers should also provide you with a statement of services and invoice you for services provided.

Please discuss this with your social worker if this applies to you.

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