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Managing Service User Finances Policy

1. Purpose

The purpose of this policy is to establish clear, transparent, and ethical procedures for managing the finances of the people we support, ensuring that they:

• Retain control over their own finances wherever possible.
• Receive support in a way that promotes dignity, independence, and best interests.
• Are safeguarded from financial abuse, fraud, and mismanagement.
• Have their money, property, and financial affairs managed lawfully and in compliance with CQC and legal regulations.

This policy aligns with Regulation 13: Safeguarding Service Users from Abuse and Improper Treatment, which includes financial abuse prevention​.

2. Scope

This policy applies to:

• All staff who support people in managing their money.
• The people we support, their family members, legal representatives, and advocates.
• Registered Manager, Deputy Manager, and Finance Officers.

It covers:

• Assistance with budgeting and payments.
• Safeguarding money from financial abuse.
• Recording and auditing financial transactions.
• Compliance with legal frameworks, including the Mental Capacity Act 2005.

3. Legal and Regulatory Framework

This policy aligns with:

• Regulation 9: Person-Centred Care – Ensuring support is tailored to individual needs​.
• Regulation 10: Dignity and Respect – Ensuring privacy and independence in financial management​.
• Regulation 13: Safeguarding Service Users from Abuse – Preventing financial abuse​.
• Regulation 17: Good Governance – Keeping clear financial records and evidence of financial transactions​.
• The Mental Capacity Act 2005 – Ensuring legal and ethical decision-making.
• The Care Act 2014 – Ensuring service users’ rights and protection from exploitation​.

4. Principles of Financial Management

4.1 Promoting Independence and Choice

• People we support must be encouraged to manage their own finances where possible.
• Support must be proportionate to the individual’s needs and preferences.
• Assistance with finances must be requested by the individual or authorised by a legal representative.

4.2 Mental Capacity and Financial Decision-Making

• Staff must always assume capacity unless proven otherwise.
• If a person lacks capacity, financial decisions must be made in their best interests, following the Mental Capacity Act 2005.
• If a Deputy (Court of Protection) or Lasting Power of Attorney (LPA) is appointed, staff must ensure they only act within their legal limits.
• A financial capacity assessment must be documented before assuming control over an individual’s finances.

4.3 Safeguarding Against Financial Abuse

• Staff must be vigilant in identifying signs of financial abuse, such as:
  • Sudden unexplained withdrawals or missing money.
  • Changes in spending patterns.
  • Unpaid bills when there are sufficient funds.
  • A person being pressured into financial decisions.
• Any suspected financial abuse must be reported immediately to the Safeguarding Lead ({{org_field_safeguarding_lead_name}}).
• Access to financial records must be limited to authorised personnel.

4.4 Secure Handling of Money and Valuables

• A secure, locked storage system must be in place for individuals who require assistance with cash storage.
• All valuables must be logged and signed for.
• Receipts must be obtained for all transactions.
• Two members of staff must witness and sign for any financial transactions over £50.

4.5 Record-Keeping and Transparency

• All financial transactions must be recorded in an individual’s Financial Record Log.
• Receipts, bank statements, and other financial documents must be securely stored and available for auditing.
• Regular financial audits must be conducted to prevent errors or fraud.

4.6 Managing Bank Accounts and Benefits

• Staff must not open, close, or change bank accounts on behalf of a person without legal authority.
• If a person is unable to manage their bank account, the Court of Protection or a legal deputy must be involved.
• State benefits must be received directly by the individual or their appointed financial representative.

4.7 Handling Cash and Personal Spending

• If individuals require cash handling support:
  • A limit must be set on the cash held on their behalf.
  • Spending must be tracked and recorded daily.
  • Any unused cash must be stored securely.
• People should be encouraged to make contactless payments where possible to enhance financial security.

5. Staff Training and Responsibilities

5.1 Staff Responsibilities

• Staff must never borrow, lend, or take money from a person they support.
• Personal relationships must not influence financial transactions.
• Staff must ensure that individuals receive value for money in their purchases.
• Financial decisions must always align with the individual’s care plan and best interests.

5.2 Training Requirements

All staff involved in financial management must receive training in:

• Mental Capacity Act and financial decision-making.
• Fraud prevention and financial abuse safeguarding.
• Proper recording and auditing of transactions.
• Ethical money management and best practices.

6. Safeguarding and Reporting Financial Concerns

• Any suspicion of financial abuse must be reported immediately to the Safeguarding Lead ({{org_field_safeguarding_lead_name}}).
• The incident must be recorded in a financial concern log and investigated.
• If financial abuse is suspected, the local authority safeguarding team ({{org_field_local_authority_authority_name}}) and CQC must be notified.

7. Monitoring and Compliance

To ensure high standards in financial management, the care home will:

• Conduct monthly financial audits of service user accounts.
• Ensure CQC compliance checks are conducted during internal reviews.
• Monitor staff compliance through spot-checks and supervisory reviews.
• Seek regular feedback from service users and families regarding financial handling.

8. Related Policies

This policy should be read alongside:

• CH07 – Person-Centred Care Policy
• CH08 – Dignity and Respect Policy
• CH13 – Safeguarding Adults from Abuse and Improper Treatment Policy
• CH17 – Infection Prevention and Control Policy
• CH18 – Risk Management and Assessment Policy
• CH35 – Duty of Candour Policy

9. Policy Review

This policy will be reviewed annually or sooner if legislative, regulatory, or operational changes occur. The Registered Manager is responsible for ensuring that all staff adhere to the latest financial management guidelines and maintain best practices.

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Responsible Person: {{org_field_registered_manager_first_name}} {{org_field_registered_manager_last_name}}
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