# The Special Educational Needs (Personal Budgets) Regulations 2014, Regulation 14: Stopping making direct payments


(1) A local authority must stop making direct payments if—
(a) the recipient has notified the local authority in writing that he or she no longer consents to receive the direct payments;
(b) the recipient ceases to be a person to whom a direct payments may be made under regulation 5(2);
(c) following a review under regulation 11, it appears to the local authority that—
(i) the recipient is not using the payment to secure the agreed provision;
(ii) the agreed provision can no longer be secured by means of direct payments;
(d) at any point the local authority becomes aware that the making of direct payments is—
(i) having an adverse impact on other services which the local authority provides or arranges for children and young people with an EHC plan which the authority maintains; or
(ii) no longer compatible with the authority’s efficient use of its resources;
(e) it has taken reasonable steps under regulation 15(1) to ascertain whether the young person consents to direct payments and the young person has not notified the local authority that he or she consents to receive direct payments.
(2) A local authority may stop making direct payments if the recipient has failed to comply with any of the conditions set out in regulation 8(3).
(3) Where a local authority decides to stop making direct payments, the local authority must first give notice in writing to the recipient setting out the reasons for its decision.
(4) The local authority must reconsider its decision where requested to do so by the recipient.
(5) When conducting its reconsideration, the local authority must consider the representations made by the recipient (and where the recipient is a nominee, any representations made by the child’s parent or young person) and must then provide written reasons of its decision following the reconsideration to the recipient (and to the child’s parent or young person, where the recipient is a nominee).
(6) The local authority may not be required to undertake more than one reconsideration of its decision following the reconsideration.
(7) Any right or liability of the recipient to a third party acquired or incurred in respect of a service secured by means of direct payments transfers to the local authority when the local authority stops making direct payments under paragraph (1).
(8) The transfer of the liability under paragraph (6) is binding on third parties, even though apart from this paragraph it would have required the consent of the third party.

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Source: https://www.legislation.gov.uk/ukdsi/2014/9780111114056/regulation/14 (the official version)
Page: https://openlegislation.uk/draft-special-educational-needs-personal-budgets-regulations-2014/regulation-14
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.