Paragraph 14 Amount of direct payments
The local authority must ensure that the amount of the direct payments is sufficient to secure the full cost of the agreed provision.
The local authority may at any time increase or reduce the amount of the direct payments provided that the authority is satisfied that the new amount is sufficient to secure the full cost of the agreed provision.
The local authority may reduce the amount of a direct payment for such period as it determines where—
direct payments have accumulated and remained unused; and
the local authority considers that it is reasonable to offset the monies accumulated against the outstanding amount to be paid for that period.
Where the local authority decides to increase or reduce the amount of direct payments it must—
give reasonable notice in writing to the person receiving the direct payments; and
where it decides to reduce the amount of direct payments in the circumstances described in sub-paragraph (2) or (3), it must give reasons for that reduction in the notice.