Help to manage your direct payment (nominated and authorised person)
You may have someone help manage your direct payment or manage it on your behalf, depending on your circumstances and mental capacity.
Nominated person
A nominated person is someone you choose, where you have mental capacity, to manage your direct payment on your behalf or support you to do so. The agreed role must be clearly defined. The person responsible for managing the direct payment must sign the direct payment agreement.
A nominated person may support with, or manage, the financial administration of the direct payment and may, for example, act as the employer of any personal assistants. However, signing the direct payment agreement or managing the funds does not, in itself, make the nominated person the employer. Where a nominated person is involved, the direct payment user and the nominated person should agree their respective roles and responsibilities.
The council must be satisfied that the nominated person is suitable and capable of managing the direct payment, and may involve them in assessment, care planning, and reviews where appropriate.
A nominated person must not receive any unauthorised financial benefit from the direct payment. This includes acting as a personal assistant, care provider, or payroll provider, or paying themselves, unless this has been explicitly approved by the council due to identified need or where permitted (for example, an appointed solicitor).
Authorised person
Where you lack mental capacity to request a direct payment, and you have a lasting power of attorney (LPA) or a court-appointed deputy for health and welfare, they can act as an authorised person for a direct payment. If your attorney or deputy wishes to allow another person to act as an authorised person for a direct payment, they can choose a suitable person to do this with the agreement of the council. Where you do not have a lasting power of attorney (LPA) or a court-appointed deputy, the council will work with you to appoint a person who they think is a suitable person to become an authorised person to manage your direct payment.
To decide who is best to become an authorised person, the council will use the best interests process under the Mental Capacity Act 2005. This will include the council being satisfied that the person will act in your best interests in arranging your care and support using the direct payment. As part of this process, we will also ask you who you might want to manage your direct payment as an authorised person. This will usually be someone who is known to you and trusted by you for example a family member of close friend. This decision will be recorded.
The authorised person must sign the direct payment agreement and comply with its terms. They must not receive any unauthorised financial benefit, including paying themselves to provide care.
If no authorised person is identified, you will not be eligible for a direct payment, and the council will arrange alternative services to meet your needs.
Policy and guidance
We've updated our direct payments policy and guidance - this will be introduced as user agreements are updated from Summer 2026.