A Blend of Public and Personal Funding
Shared Lives, a high-quality and person-centered alternative to residential care, relies on a structured funding model that combines public resources with individual contributions. This system is designed to provide stability and support for individuals with eligible care needs while ensuring a fair and transparent payment process for Shared Lives carers.
The most significant public contributors are local authorities, using their adult social care budgets to commission Shared Lives placements for eligible individuals following a needs assessment. This is often the primary channel for statutory funding. In some cases, the National Health Service (NHS) also provides funding, particularly for individuals with complex health needs, mental ill health, or those transitioning from hospital care. This blend of funding streams ensures a wide range of needs can be met, catering to diverse client groups, including adults with learning disabilities, older people, and those with physical disabilities.
The Role of Personal Budgets and Direct Payments
For many individuals, personal budgets and direct payments provide a flexible way to fund their Shared Lives arrangements. A personal budget is an allocation of money from the local council, determined after a care needs assessment. Individuals can then use this budget to purchase the care services outlined in their support plan. For a Shared Lives placement, this means the personal budget can be used to pay for the care and support element of the arrangement.
How personal budgets are used
- Managed Funds: The most common and recommended approach is for the individual's personal budget to be managed by the Shared Lives scheme itself. The council transfers the funds to the scheme, which then pays the carer a fixed fee for their services.
- Direct Payments: Some individuals may choose to receive a direct payment, which is cash paid directly to them by the local authority. While this offers greater control, it is more complex and less common for Shared Lives arrangements, as most schemes prefer to manage the payment process to ensure legality and regulatory compliance.
Contributions from the Individual
In addition to the public funding for care and support, the individual receiving the service is responsible for contributing towards their living costs, known as 'board and lodgings'. This contribution covers expenses such as accommodation, food, and utilities.
How individual contributions are paid
Individuals typically use their social security entitlements to cover these costs. These can include:
- Housing Benefit or the housing element of Universal Credit
- Personal Independence Payment (PIP)
- Employment and Support Allowance (ESA)
- Other disability and housing-related benefits
- Any private income or savings, especially for those who self-fund
Comparison: Funding Shared Lives vs. Residential Care
| Feature | Shared Lives | Residential Care | Shared Lives Plus |
|---|---|---|---|
| Carer Payment Model | Fixed fee paid by the scheme, not hourly. | Hourly or salaried staff payments, often managed by the care home provider. | Carers are self-employed and receive tax breaks via Qualifying Care Relief. |
| Accommodation Costs | Individual pays board and lodgings from benefits or personal funds. | Accommodation costs are typically bundled into the overall care fee, often higher than standard housing. | Costs are generally lower for the public purse. |
| Funding Sources | Blend of local council budgets, NHS funding, personal budgets, and individual contributions. | Predominantly local authority or NHS funding, with significant means-tested personal contributions. | A wider, more flexible mix of funding streams is utilized. |
| Value for Money | Research shows it is significantly more cost-effective than residential care for people with learning disabilities. | Can be considerably more expensive, putting pressure on local social care budgets. | Councils recognize the cost-saving potential and are investing in expansion. |
How Shared Lives Schemes Manage the Process
Shared Lives schemes are the central orchestrators of the funding process. These schemes recruit, train, and vet the self-employed Shared Lives carers. They are responsible for setting up the legal and financial agreements and ensuring all regulatory requirements are met. The scheme acts as the financial intermediary, receiving the funding from the local authority or NHS and then paying the carer their agreed-upon fee.
This structured approach safeguards both the person being supported and the carer. It ensures that the carer receives a fair and regular income for their work, while also guaranteeing that the individual's care plan and financial arrangements are properly managed and monitored. This system differentiates Shared Lives from more informal arrangements, giving all parties the security of a professionally overseen and regulated service.
The process of securing funding
- Needs Assessment: A social worker conducts an assessment to determine the individual's care needs and eligibility for public funding.
- Support Plan: A personalized care and support plan is created based on the assessment, which identifies Shared Lives as a suitable option.
- Financial Assessment: A financial assessment is carried out by the local authority to determine how much the individual needs to contribute towards their care.
- Budget Allocation: A personal budget is allocated to cover the care costs, managed by the local scheme.
- Individual Contribution: The individual's contribution for board and lodgings is arranged, typically using benefits.
- Scheme Payments: The Shared Lives scheme receives funding from the council and pays the carer their fixed fee.
Conclusion: A Multi-faceted Funding Approach
To answer the question who funds Shared Lives?, it's clear there is no single source. Instead, it is a multi-faceted approach involving substantial public investment from local councils and the NHS, combined with personal contributions from the individual receiving support. This model is underpinned by robust schemes that manage the process and ensure quality and transparency. By leveraging these diverse funding streams, Shared Lives continues to provide a vital, cost-effective, and highly-rated form of social care that benefits thousands across the UK.
