SL41-Managing Service User Finances Policy

Registration Number: {{org_field_registration_no}}

Managing Service User Finances Policy

1. Purpose

This policy outlines how {{org_field_name}} ensures the safe, transparent, and person-centred management of finances for the people we support. It is designed to safeguard individuals from financial abuse, support autonomy in financial decision-making, and comply with CQC regulations, the Care Act 2014, the Mental Capacity Act 2005, and other relevant legal frameworks.

The policy aims to:

Ensure financial independence is promoted wherever possible.
Provide clear guidance on financial management responsibilities for staff.
Implement strict controls to prevent and detect financial abuse or mismanagement.
Comply with all relevant legal and regulatory requirements, including CQC fundamental standards.

2. Scope

This policy applies to all staff, including permanent, temporary, agency, and volunteer workers who may be involved in supporting individuals with their finances. It applies to all financial transactions, budgeting, and safeguarding procedures related to the people we support.

This policy also extends to any third-party representatives, advocates, or family members who are involved in managing the finances of individuals within our care.

3. Related Policies

SL07 – Person-Centred Care Policy
SL08 – Dignity and Respect Policy
SL09 – Consent to Care Policy
SL13 – Safeguarding Adults from Abuse and Improper Treatment Policy
SL34 – Confidentiality and Data Protection (GDPR) Policy
SL39 – Mental Capacity and Deprivation of Liberty Safeguards Policy
SL42 – Communication and Engagement with Service Users and Families Policy
SL17 – Infection Prevention and Control Policy (where applicable to financial documents handling)

4. Principles

Promoting Autonomy: People we support should be encouraged and enabled to manage their own finances wherever possible.
Safeguarding: Protecting individuals from financial abuse, exploitation, or fraud.
Transparency and Accountability: Clear record-keeping and oversight of all financial transactions.
Legal and Regulatory Compliance: Adherence to CQC regulations, the Mental Capacity Act 2005, and financial safeguarding laws.
Person-Centred Approach: Supporting individuals to make informed financial decisions in line with their best interests.
Minimising Risks: Ensuring robust measures are in place to prevent mismanagement, fraud, and undue influence.

5. Financial Management Procedures

5.1 Assessing Capacity

Under the Mental Capacity Act 2005, the capacity of an individual to manage their finances must be assessed where there are concerns. If an individual lacks capacity:

A Best Interest Meeting should be conducted with relevant parties, including family members, advocates, and professionals.
A Court of Protection Deputy or Appointee may be appointed to manage finances where required.
Staff must always assume capacity unless assessed otherwise and ensure individuals are supported in decision-making.
The decision-making process must be fully documented, outlining who was involved and the justification for decisions taken.

5.2 Bank Accounts and Money Handling

Wherever possible, people we support should have personal bank accounts in their own names and be supported to manage their finances independently.
If direct support is required, staff should only assist in a supervisory role and should not control accounts.
Service accounts must never be used to hold personal funds.
All financial transactions must be recorded accurately in a financial log and signed by both the individual (where possible) and the staff member.
A dual control system should be implemented where staff handle cash on behalf of individuals to ensure accountability.

5.3 Cash Handling and Safeguarding Funds

Cash withdrawals and spending must be agreed upon and recorded in a finance log.
All receipts must be kept and securely stored.
Regular audits must be carried out by a designated manager to prevent financial abuse.
No personal funds should be kept on the premises of the service without a clear record and secure storage process.
Where a safe is used, only authorised personnel should have access, and access logs must be maintained.

5.4 Payments and Budgeting Support

Individuals should be encouraged to budget their own money with guidance rather than direct intervention.
Staff should provide financial literacy support, such as help with bill payments, savings, and accessing benefits.
Where staff are involved in making payments on behalf of an individual, a dual-signatory system should be in place.
Online banking access should be supported but never controlled by staff.

5.5 Safeguarding Against Financial Abuse

Financial abuse indicators (e.g., unexplained withdrawals, missing money, pressure to give money) should be reported immediately as a safeguarding concern.
If financial abuse is suspected, follow the Safeguarding Adults from Abuse Policy (SL13) and notify the Safeguarding Lead immediately.
Staff must not accept personal gifts or loans from the people we support or their families.
Any financial agreement or support beyond standard care provisions must be formally documented and approved by management.

5.6 Benefits and Allowances

People we support should receive all benefits they are entitled to.
Staff may assist in applying for benefits where needed but must not control them.
The Department for Work and Pensions (DWP) Appointeeship process should be followed where necessary for individuals who lack capacity.
All financial decisions involving third-party access to funds should be recorded and subject to review.

5.7 Auditing and Monitoring

Financial records must be reviewed monthly by senior management.
Any discrepancies must be reported immediately and investigated.
An annual audit will be conducted to ensure compliance with financial procedures and regulations.
Spot checks must be conducted randomly to verify compliance with financial policies.
Individuals and their families must have access to clear financial records upon request.

6. Training

Staff must complete mandatory training on financial safeguarding and the Mental Capacity Act.
Ongoing refresher training will be provided annually.
Training will include recognising signs of financial abuse and the correct procedures for reporting concerns.
Staff must be trained in correct record-keeping procedures related to financial transactions.
Staff should receive guidance on supporting individuals with financial literacy and independence.

7. Confidentiality and Data Protection

All financial records must be securely stored and only accessible to authorised personnel.
Personal financial information must be handled in line with GDPR regulations and the Confidentiality and Data Protection Policy (SL34).
Individuals should be informed about how their financial records are managed and stored.
Any financial information shared with external agencies must have the individual’s consent (unless safeguarding concerns require immediate intervention).

8. Policy Review

This policy will be reviewed annually or earlier if required due to legislative changes, updates to CQC regulations, or identified improvements in practice.

Responsible Person: {{org_field_registered_manager_first_name}} {{org_field_registered_manager_last_name}}
Reviewed on: {{last_update_date}}
Next Review Date: {{next_review_date}}
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