DWP Annual Management Fee Consultation
- This consultation has now ended - thank you to everyone who took part
What happens next?
On 12 November 2019, the cabinet agreed to accept the introduction of a fee of £650 per year. People whose accounts are being managed were contacted about the payment of the fee.
What we consulted on
The DWP Annual Management Fee Consultation related to the proposed introduction of an annual management fee for managing Department for Work and Pensions (DWP) Appointee Accounts.
This proposal was to charge an administration fee where the council manages money on behalf of clients where it is acting as the client’s DWP Appointee. The DWP Appointee’s responsibilities include making and maintaining any benefit claims, collecting DWP payments and the payment of bills.
Adults have the right to manage their own financial affairs; however, this may be difficult for some individuals owing to their lack of capacity, illness and/or disability.
Most local authorities provide a money management service for adult social care users who are unable to manage their own financial affairs. The council recognises the importance of supporting vulnerable adults to manage their finances and to protect them from potential or actual financial abuse.
What was being proposed?
The council proposed to introduce an annual management fee. The fee will be set at £650 per annum for the current year; however, where an individual’s net savings are below £16,000, the fee will not exceed 3.5% of the client’s net savings on the anniversary date the DWP appointed the council as appointee.
Why?
The council must make vital savings because of significant reductions in its budgets. Given these pressures, the council held a borough-wide consultation in December 2018 to refresh its Medium-Term Financial Strategy to cover the period up to 2023/24. The consultation contained ideas on how to meet the budget challenges, which included charging for managed accounts (DWP) for adult social care.
What is currently offered?
The council currently does not charge for managing DWP Appointee Accounts.
What changed?
This change resulted in the council introducing an annual management fee for DWP Appointee Accounts, where it acts as appointee for DWP for clients income/benefits from December 2019.
The fee was initially £650 per annum for the current year or where the net savings of an individual are below £16,000, the fee will not exceed 3.5% of the client’s net savings on the anniversary date the DWP appointed the council as appointee.
The consultation began on Monday 22 July 2019 and ended Sunday 8 September 2019.