When it comes to delivering effective social care, Individual Service Funds (ISFs) are a key tool for providing people with choice, control, and flexibility. Behind every successful ISF lies a well-constructed contract and service specification. These documents are not just bureaucratic necessities. They are the backbone of accountability, clarity, and trust between councils, providers, and individuals.
Why a Strong ISF Contract Matters
A solid ISF contract defines the roles, responsibilities, and expectations of all parties involved—the council, the ISF provider, and, most importantly, the individual. Without this, the flexibility that ISFs promise can quickly turn into confusion or, worse, misuse of funds. A robust contract ensures the following:
Clear Accountability
It outlines who is responsible for managing the budget, delivering support, and monitoring outcomes.
Transparency
Individuals and their families can see exactly how their budget is being used, with clear processes for reporting and audits.
Flexibility with Boundaries
While ISFs are designed to be adaptable, the contract ensures that the funds are spent in ways that align with agreed outcomes.
Belinda Schwehr, a leading expert in adult social care law, highlights the importance of clear, two-way agreements between individuals and providers. These agreements establish mutual understanding and ensure legal clarity and service quality. By clearly defining roles and responsibilities, potential conflicts of interest—such as when providers act as both assessors and service providers—can be avoided. This clarity safeguards the integrity of care delivery.
What Should an ISF Agreement Include?
In addition to the overarching contracts and specifications managed by councils, there should be a clear, person-centred agreement between the individual and their ISF provider. This agreement is critical for building trust and ensuring everyone is on the same page. Based on the Sheffield specification, these agreements should ideally include:
- The Role of the ISF Provider: What the individual can expect from the provider, including the level of support and flexibility offered.
- Budget Use and Transparency: Clear information on how the budget will be managed and spent, with the individual having visibility of their account.
- Decision-Making Processes: How the individual will be involved in decisions about their budget, including any changes to how support is delivered.
- Community Connections: Plans to support the individual in engaging with local clubs, groups, or services that align with their goals and interests.
- Support Plan Reviews: Details on how and when reviews of the support plan will occur, ensuring the budget continues to meet the individual’s needs and outcomes.
- Boundaries and Expectations: Clear definitions of roles and responsibilities for both the individual and the provider.
- Complaints and Feedback: A transparent process for raising complaints or providing feedback, including escalation routes if necessary.
- Safeguarding Procedures: How the provider will ensure the individual’s safety and well-being.
These agreements serve as a practical tool for individuals to understand how their personal budget is being used and to ensure their voice is central to decision-making.
Key Elements of a Good ISF Specification
The service specification translates the vision for ISFs into practical action. It is not just about compliance. It is about enabling creativity, innovation, and person-centred support. A well-thought-out ISF specification should include the following:
- The Purpose and Outcomes: A clear explanation of how ISFs empower individuals to achieve their goals and outcomes.
- Detailed Service Expectations: From enabling independence to promoting dignity and choice, the specification sets the standard for what good looks like.
- Monitoring and Quality Assurance: Clear processes for tracking progress, managing complaints, and ensuring continuous improvement.
Avoiding Common Pitfalls
Many councils struggle with vague or overly rigid contracts and specifications. These issues can stifle the flexibility that makes ISFs appealing. On the other hand, poorly defined expectations can lead to misaligned priorities, leaving individuals frustrated and outcomes unmet.
A good contract strikes the right balance between structure and adaptability. It leaves room for creativity while ensuring that public funds are used responsibly. Belinda Schwehr also emphasises the importance of ensuring that roles and boundaries within the ISF arrangement are clearly set out. Ambiguity in contracts can lead to misunderstandings and disputes, undermining the success of the ISF.
Recommendations for Councils
- Co-Produce the Specification: Work with individuals, families, and providers to create documents that reflect real-world needs and priorities.
- Make It Customisable: No two councils are the same, and neither are the people they support. Develop templates that can be tailored to local contexts without losing their core principles.
- Define Roles Clearly: Ensure that contracts explicitly state the duties and limitations of each party to prevent conflicts of interest and maintain service quality.
- Monitor Compliance: Implement oversight mechanisms to ensure providers adhere to contractual obligations while safeguarding individual interests.
- Focus on Outcomes, Not Just Processes: Keep the individual at the centre. The ultimate test of any ISF contract or specification is whether it helps people live better lives.
Chris Watson
Chris Watson is the founder of Self Directed Futures and the Chair of SDS Network England. With extensive experience in strategic commissioning and change management, Chris advocates for innovative, community-led approaches to adult social care.