Setting an Indicative Budget (Carers)

1. Understanding what an Indicative Budget is

An indicative budget is a figurative amount calculated immediately following the assessment. It estimates the amount of money it may take to meet a carer's eligible needs and is based on information gathered during any assessment process.

2. Why an Indicative Budget is Important

An indicative budget is important because it supports the carer (and anyone supporting them with Support planning) to;

1. Understand the amount of financial resource that may be available to them (and also what is not available);
2. Explore options to meet needs that are within the available financial resource.

Knowing how much financial resource is available manages expectations and reduces the risk of dissatisfaction when the final personal budget is agreed.

3. When an Indicative Budget Should be Set

An indicative budget should be set;

1. After a carer's needs have been established and agreed; but
2. Before any Support planning process begins.

4. The Process of Setting an Indicative Budget

The process of setting an indicative budget should be timely, transparent and ensure a sufficient amount to meet the identified eligible needs.

Click here to read what the Care Act says about setting indicative and personal budgets, including more about what is meant by the terms timely, transparent and sufficient.

The Local Authority uses a Resource Allocation System (RAS) to set indicative personal budgets following assessment.

5. Sharing the Indicative Budget

The indicative budget must be shared with the following people as soon as it is known and before any Support planning process begins;

1. The carer whose needs are to be met;
2. Any advocate involved; and
3. Anyone else involved in the Support planning process.

You should also make available any information to explain how the indicative budget amount was reached.

The Local Authority letter template should be used when communicating this in writing. Click here to access it.

If it is available the outcome of any financial assessment process being carried out should also be made available at this stage. Understanding the implications for their personal finances can influence the options that a carer chooses to explore during Support planning.

If a financial assessment has been requested and the outcome is not yet known you can contact the financial assessment team at Client.Affairs@lbbd.gov.uk to establish progress.

6. What to do if the Indicative Budget is not Sufficient

The indicative budget is only an estimation of the amount it may cost to meet the carer's eligible needs and the final personal budget that is agreed after the Support planning may be slightly higher or lower than this amount.

However, despite being estimated, the indicative budget should still be sufficient to support effective Support planning and meet the eligible needs that have been identified.

If you do not feel it is sufficient

If you are of the view that the indicative budget is not sufficient to support effective Support planning you should;

1. Review the formal record of the carer's needs to ensure that you have not made any recording errors; and
2. Review the process that you followed to set the indicative budget to ensure that you followed all the required steps.

If you continue to have concerns about the sufficiency of the indicative budget you should speak to your line manager to agree further action required and next steps.

Whenever decisions about indicative and personal budgets are being reviewed regard should be given to the statutory requirements for setting budgets under the Care Act, which can be accessed by clicking here.

If the carer does not feel it is sufficient

Sometimes a carer may feel that the indicative personal budget they have been given is not sufficient to meet their needs. If you are in agreement with this you should follow the steps outlined above.

However, if you feel that the budget is sufficient to commence Support planning you should;

1. Explain that the indicative budget is an estimation based upon the eligible needs agreed during the assessment process;
2. Provide information about the process used to set indicative budgets;
3. Encourage the carer to proceed with the Support planning process and explore the full range of options to meet needs that are available (which will include alternatives to Local Authority provision); and
4. Assure the carer that where there is evidence (following the Support planning process) that the indicative budget is not sufficient this will be reflected in any final personal budget that is agreed.

Despite reassurances the carer may continue to be dissatisfied with the indicative personal budget amount and in this case you must make them aware of their right to complain.