Nominated and authorised persons

Nominated person

A nominated person is someone that the individual has chosen to help manage their direct payment. This could be a family member, friend, or someone else they trust.

The level of support can vary, from helping with budgeting to managing all aspects of the payment. This means that a nominated person could potentially receive and manage all of the finances, or just provide support with budgeting and making payments.

Prior to The Care Act 2014, the role of a nominated person was known as a ‘Third Party’.

Authorised person

If someone has been found as lacking the capacity to consent to receive direct payments, but direct payments would still be beneficial, an alternative recipient may be sought. This alternate recipient is known as an authorised person.

An authorised person should be anyone who is a court appointed deputy or holds Lasting Power of Attorney and is willing to receive direct payments.

Prior to The Care Act 2014, the role of a nominated person was known as a ‘Suitable Person’.

Who can become an authorised person

An authorised person could be:

  • a court appointed deputy
  • someone with Lasting Power of Attorney (LPOA)
  • a family member or friend already involved in the individual’s care

If the authorised person doesn’t want to manage the payment, someone else can be nominated to do so. However, the practitioner must assess and approve them as suitable before any payments can be made.

An authorised person should never use direct payments to pay themselves for care or to benefit financially from the role. The funds must only be used to meet the care needs of the individual.

For more information, see: What direct payments can and cannot be used for.

Eligibility requirements

National regulations need a person to be able to consent to receive direct payments; this means you must be able to understand what direct payments are and what they are there to provide.

An authorised person must be assessed as being suitable by a practitioner (in line with the Care and Support (Direct Payments) Regulations 2014) before they can receive direct payments.

If an authorised person is identified, they must sign the Authorised Person Direct Payments agreement and agree to the responsibilities and conditions within it. The Agreement sets out the terms and conditions of direct payments.

 To become an authorised person, you must:

  • be willing and able to take on the responsibility
  • provide proof of your legal authority (such as a Deputyship Order or LPOA document)
  • be assessed as suitable by a social care practitioner using the Authorised Person Checklist

If there is no formal representative available, a family member or friend who is already involved in the person’s care and known to them can be considered to receive the direct payment as a nominated or authorised person.

If there is any doubt about a person's ability to consent to direct payments, a formal mental capacity assessment will be undertaken in line with the Mental Capacity Act 2005.

People who cannot receive direct payments

Direct payments cannot be paid to people who are subject to a drug rehabilitation, subject to an alcohol treatment or released from prison on licence.

For the full list, see: The Care and Support (Direct Payments) Regulations 2014.

Disclosure and Barring Service (DBS) Checks

Anyone employed by the authorised person to provide care must have a valid DBS check.

See the latest DBS guidance:

DBS information

The Direct Payment Support Service can support with arranging a DBS check.

Consenting to direct payments

Some individuals may need support to understand what a direct payment is and how it works. If they can give informed consent, they can receive the payment directly, even if they need help managing the money.

If you have consented to receive a direct payment, you may:

  • receive the money yourself
  • receive the money yourself with the help of a nominated person
  • decide that the money is paid to a nominated person to be managed on your behalf

Consenting to direct payments should not be confused with the ability to manage and use the funds. You may understand the rules of direct payments but need help to manage the money.

There are many ways of supporting people using direct payments, including deciding on who receives the funds.

A person who is assessed as lacking the capacity to consent to receive direct payments may not personally receive them. However, an authorised person may do so and use the funds to purchase care.

Mental capacity and consent

If there are concerns about an individual’s ability to consent, a Mental Capacity Assessment should be carried out. This helps determine whether they can make decisions about receiving and managing a direct payment.

If someone lacks capacity to consent, they cannot receive the direct payment themselves.

An authorised person can receive and manage the payment on their behalf, ensuring their care needs are still met.

Support with direct payments

If you have any questions about direct payments or require further information, contact the Direct Payment Support Service (DPSS).

The DPSS can not assist with setting up direct payments. To enquire about setting up a direct payment, make a request to the adults' social care team.

Direct Payment Support Service (DPSS)