The question of whether Individual Service Funds (ISFs) can be used for holidays and recreational activities is a common and sometimes contentious issue in social care. Many ISF providers and families report confusion, inconsistent decisions, or outright refusals from local authorities regarding the funding of short breaks, respite, and supported travel.

This uncertainty often arises because:

✔Some local authorities apply blanket bans on holiday funding, despite legal rulings confirming that such restrictions are unlawful.
✔There is a lack of clear guidance on how ISFs should be used to meet assessed needs beyond traditional care settings.
✔Holidays and short breaks are sometimes viewed as luxuries, rather than as essential aspects of well-being, respite, and social inclusion.

However, the Care Act 2014 places a clear duty on councils to promote well-being, choice, and independence, which includes enabling people to participate in their communities, maintain relationships, and access meaningful activities. The Local Government and Social Care Ombudsman (LGSCO) has also ruled that councils must assess individual needs rather than applying rigid policies that exclude holiday funding.

Purpose of This Guide

This guide has been developed to provide:

Clarity – Setting out the basis for using ISFs for holidays under the Care Act 2014.
Best Practice Guidance – Helping ISF providers, local authorities, and families understand how funding decisions should be made.
Case Law Examples – Demonstrating how previous LGSCO rulings support the flexible use of ISFs for holidays.
Practical Steps – Equipping ISF providers with clear strategies to navigate funding discussions and work in partnership with councils.

A Partnership Approach

Rather than being a source of dispute, ISFs should be a tool for enabling choice and flexibility in social care. This guide promotes a collaborative approach, where ISF providers and local authorities work together to:

✔Make fair, person-centred decisions that reflect individual needs and aspirations.
✔Ensure that funding policies align with legal requirements and best practice.
✔Support individuals to access the opportunities that contribute to their well-being and quality of life.

Holidays, short breaks, and leisure activities are not “extras”—for many people, they are fundamental to living well, maintaining relationships, and avoiding crisis. By working together, ISF providers, councils, and families can ensure that ISFs are used effectively, fairly, and in a way that maximises independence and well-being.

1. Legal Frameworks – the Care Act 2014

The Care Act 2014 sets out clear duties for local authorities to ensure that care and support arrangements are person-centred, flexible, and focused on well-being. These duties apply to all forms of social care funding, including Individual Service Funds (ISFs).

a) The Well-being Principle (Section 1 of the Care Act 2014)

The Care Act 2014, Section 1, requires councils to promote well-being in all decisions related to care and support. The Act defines well-being as including, but not limited to:

• Personal dignity, respect, and control over daily life.
• Physical, mental, and emotional well-being.
• Participation in work, education, training, and recreation.
• Social and economic well-being.
• Suitability of living accommodation.

Legal Reference: Care Act Statutory Guidance, Chapter 1

Why this matters for ISFs and holidays:
Holidays, short breaks, and recreational activities can contribute directly to well-being by:

✔Reducing social isolation – enabling people to maintain relationships and engage in their community.
✔Providing essential respite – for both individuals and family carers, preventing burnout.
✔Supporting mental health and emotional stability – through access to enjoyable activities and a change of environment.

If a local authority fails to consider how a holiday supports well-being, it may be acting unlawfully by disregarding this fundamental principle.

b) Personalised Care Planning (Section 25 of the Care Act 2014)

The Care Act 2014, Section 25, requires that all individuals receiving care and support have a personalised care and support plan, which must:

• Be based on the person’s individual needs and aspirations.
• Detail how their outcomes will be met.
• Consider all available options, including flexible solutions like ISFs.

Legal Reference: Care Act Statutory Guidance, Chapter 10

Why this matters for ISFs and holidays:
If a person’s care plan identifies:
✔The need for social inclusion and participation in activities, or
✔The requirement for respite, whether for the individual or their carer,

Then a holiday, short break, or supported leisure activity may be an eligible use of ISFs.

A council cannot refuse funding for a holiday outright if it has been identified as meeting an assessed need in the care plan. Any refusal must be justified with a formal reassessment.

c) No Blanket Policies (LGSCO Precedent and Legal Challenge)

The Local Government and Social Care Ombudsman (LGSCO) has ruled that local authorities must not impose blanket policies that restrict how ISFs or Direct Payments can be used.

Legal Reference: LGSCO Decision on Suffolk County Council

Why this matters for ISFs and holidays:

• Blanket bans on holidays, short breaks, or recreational activities are unlawful.
• Councils must assess individual needs rather than applying general rules.
• If a holiday supports an assessed outcome, it cannot be denied purely on financial or policy grounds.

Instead, decisions should be based on a clear, transparent process that considers:
✔The person’s well-being and independence.
✔Whether the holiday or activity aligns with their care plan.
✔The proportionality and reasonableness of the request.

If a council refuses a holiday-related ISF expense without an individual assessment, the decision can be challenged on the grounds of failing to comply with the Care Act 2014.

Summary of Key Legal Points for ISFs and Holidays

1. The Care Act 2014 places a duty on councils to promote well-being.
2. Personalised care planning must consider flexible and appropriate support, including holidays.
3. Blanket bans on the use of ISFs for holidays or leisure activities are considered to be unlawful.

Local authorities, ISF providers, and families should work together in partnership to ensure that ISFs are used effectively, fairly, and in a way that maximises independence and well-being.

2. Case Law and Ombudsman Decisions

The Local Government and Social Care Ombudsman (LGSCO) has ruled in multiple cases that local authorities must not impose blanket bans on ISFs or Direct Payments for holidays and recreational activities. Councils must assess each case individually and ensure decisions are based on well-being, care planning, and assessed needs rather than rigid policies.

This section outlines key Ombudsman decisions that provide guidance on how councils should approach ISFs for holidays and short breaks.

Case Study 1: Suffolk County Council – Unlawful Blanket Ban on Holidays

Background:
Suffolk County Council wrongly refused to allow two disabled adults to use Direct Payments for holidays and community activities. The council argued that it had no legal power to fund these activities.

Ombudsman Findings:

✔The council misinterpreted the law by claiming that holidays could not be funded through Direct Payments.
✔The Ombudsman ruled that councils must consider the individual’s well-being and whether a holiday contributes to their assessed needs and outcomes.
✔Suffolk County Council was ordered to review its policy and reimburse the individuals for the funding they had wrongly denied.

Key Learning for ISF Providers:

📌If a council refuses ISF funding for a holiday without an individual needs assessment, the decision can be challenged.
📌Local authorities must justify refusals with evidence, not blanket policies.

Legal Reference: LGSCO Decision on Suffolk County Council

Case Study 2: Kirklees Council – Reducing Respite Without Justification

Background:
Kirklees Council reduced the number of respite nights allocated to a disabled individual, preventing them from taking short breaks. The council did this without conducting a reassessment.

Ombudsman Findings:

✔The council failed to complete a new needs assessment before reducing respite funding.
✔The reduction caused significant distress to the individual and their family.
✔The Ombudsman ordered Kirklees Council to reinstate funding and review its decision-making process.

Key Learning for ISF Providers:
📌If a local authority reduces ISF funding for respite, holidays, or short breaks without reassessing the person’s needs, the decision is unlawful.
📌Changes to funding must be supported by a formal reassessment and clear reasoning.

 Legal Reference: LGSCO Decision on Kirklees Council

The Importance of These Cases for ISF Providers and Local Authorities

These cases establish clear principles for how local authorities should handle ISFs and Direct Payments for holidays:

1. Blanket bans are unlawful. Councils must consider each case individually, rather than applying restrictive policies.
2. Funding decisions must be based on need. If a holiday supports a person’s well-being, social inclusion, or respite needs, it should be considered as part of their care plan.
3. Reductions in funding require a reassessment. Councils must not cut ISF funding without reviewing the individual’s needs.
4. Local authorities must provide written justifications. If an ISF request is refused, the council must explain why and provide a route for review.

How ISF Providers Can Use These Rulings in Practice

📌If a council refuses funding for a holiday, ask for written reasons and reference LGSCO case law.
📌Encourage councils to assess how holidays support the person’s well-being rather than focusing on rigid policies.
📌If funding for respite or social activities is reduced without explanation, request a reassessment.

Summary

✔Ombudsman rulings confirm that councils must not impose blanket bans on ISF funding for holidays.
✔Funding decisions must be based on individual needs assessments.
✔If an ISF request is denied, councils must provide a clear rationale, linked to care plan outcomes.
✔If funding is reduced, a reassessment is required.

These precedents help ensure that ISFs are used flexibly and fairly, supporting individuals to live full and meaningful lives.

3. Principles for ISF Providers

ISF providers play a key role in ensuring that individuals can use their funds flexibly and in line with their assessed needs. Effective management of ISFs relies on clear principles, strong partnerships with local authorities, and a person-centred approach.

This section outlines best practice principles for ISF providers to ensure that funding decisions are transparent, lawful, and focused on well-being.

a) Align Spending with the Care Plan

✔Ensure the person’s care and support plan reflects their well-being, social inclusion, and respite needs.
✔Work with individuals and families to document how holidays, breaks, or leisure activities contribute to achieving care plan outcomes.
✔If an ISF request is denied, check whether the decision aligns with the individual’s assessed needs and Care Act principles.

📌Example:
A care plan states that respite is essential for the well-being of both the individual and their family carer. In this case, an ISF could legitimately fund a supported holiday or short break, as it meets an assessed need.

b) Work in Partnership with Councils

✔Encourage open discussions with local authorities to develop clear and consistent approaches to ISF use.
✔If a funding request is refused, ask the council for a written rationale linked to the individual’s care plan.
✔Challenge blanket bans in a constructive way, referring to LGSCO rulings and the Care Act’s well-being principles.

📌 Key Questions to Ask if a Holiday ISF Request is Denied:

• What legal basis supports this decision?
• Has an individual assessment been carried out?
• How does this decision align with the Care Act’s duty to promote well-being?

📌 Example:
If a council says, “We do not fund holidays,” ISF providers should request a formal review and ask for the specific policy or legal reasoning behind the decision.

c) Define What ISFs Can and Cannot Fund

To promote transparency and consistency, ISF providers should ensure that individuals and families understand what ISFs can and cannot cover.

ISFs Can Be Used For:
✔ Support worker costs (travel, accommodation, and care provision).
✔ Adapted accommodation or specialist travel needs.
✔ Transport costs if accessibility needs require additional expenses.
✔ Support to access leisure and community activities while away.

ISFs Cannot Be Used For:
❌ Flights, accommodation, or meals for family members who are not acting as paid carers.
❌ General holiday expenses (e.g., food, drink, souvenirs, entertainment not linked to care needs).
❌ Non-care-related upgrades (e.g., luxury accommodation or first-class travel).

📌Example:
A person with a learning disability requires 24/7 support and wants to go on a short break. Their ISF could cover the cost of their support worker’s travel and accommodation but not their own holiday expenses.

d) Ensure Proper Documentation

✔Keep clear records showing how a holiday or short break contributes to the individual’s well-being and care plan outcomes.
✔Document all discussions with the local authority regarding ISF use.
✔If a request is refused, ask for a written explanation and record the response for future reference.

📌Example:
An ISF provider submits an application for holiday funding. The request includes:

• A statement from the individual or family explaining why the break is necessary.
• A link to the individual’s care plan, showing how the holiday meets an assessed need.
• Details of support worker costs and accessibility requirements.

Having strong documentation ensures that funding decisions are well-informed, transparent, and easier to challenge if necessary.

Principles for ISF Providers

1. Spending must align with the individual’s care plan and well-being outcomes.
2. Partnership working with local authorities is key to ensuring fair and consistent funding decisions.
3. Funding decisions must be based on individual needs assessments, not blanket bans.
4. Clear guidelines on what ISFs can and cannot fund help.
5. Good documentation strengthens funding requests and ensures accountability.

By following these principles, ISF providers can support individuals to access flexible, person-centred support while ensuring compliance with legal and policy requirements.

4. Practical Steps for ISF Providers

While the Care Act 2014 and LGSCO rulings establish a legal basis for using Individual Service Funds (ISFs) for holidays and recreational activities, ISF providers need practical strategies to ensure that funding is approved, well-documented, and used effectively.

This section outlines key steps ISF providers can take to support individuals, work collaboratively with local authorities, and ensure ISFs are used lawfully and flexibly.

Step 1: Check the Individual’s Care Plan

📌Why it matters:
A well-documented care and support plan is the foundation for funding decisions. If a holiday, respite, or recreational activity is not explicitly mentioned, councils may be less likely to approve it.

Actions for ISF Providers:

✔Review the care plan to ensure it includes:

• Well-being, social inclusion, and participation in activities.
• Respite needs (both for the individual and family carers).
• Flexibility in support arrangements.
  ✔ If the care plan does not reference these areas, request a review.
  ✔ Ensure that the person’s needs and outcomes align with the proposed holiday or activity.

📌Example:
A person’s care plan states that community participation and maintaining social networks are key to their mental well-being. In this case, funding for a supported holiday could be justified as part of their assessed needs.

Step 2: Engage with the Local Authority Early

📌Why it matters:
Many funding disputes arise because councils are not consulted early enough. By engaging proactively, ISF providers can prevent delays and misunderstandings.

Actions for ISF Providers:

✔Request a meeting or written confirmation from the local authority before booking.
✔Provide clear justification based on the person’s care plan and well-being needs.
✔Ask for a clear written response—if a council refuses funding, they must explain why and link it to an individual assessment.

📌Example:
An ISF provider contacts the local authority three months before a planned holiday to discuss funding. The provider submits a written request with evidence and asks for a formal decision within a reasonable timeframe.

Step 3: Provide Evidence to Support Funding Requests

📌Why it matters:
Councils must make decisions based on evidence, not assumptions. ISF providers should build a strong case demonstrating how the holiday meets assessed needs.

Actions for ISF Providers:

✔Document how the holiday contributes to well-being and independence (referencing the Care Act).
✔Provide examples of previous LGSCO rulings to demonstrate why holiday funding should be considered.
✔Include supporting statements from the individual, family members, or professionals where relevant.

📌Example:
A support plan states that a structured break in a new environment reduces anxiety and improves the person’s ability to engage in daily activities. The ISF provider submits a supporting letter from a therapist explaining the benefits of a planned holiday.

Step 4: Advocate for Flexibility in ISF Use

📌Why it matters:
ISFs exist to provide flexible, personalised support. If a council applies rigid rules, it may be acting against the spirit of the Care Act.

Actions for ISF Providers:

✔Challenge blanket bans by referencing the Care Act’s well-being principle and LGSCO decisions.
✔Encourage creative solutions—if one type of support is not approved, explore alternatives.
✔Offer to work collaboratively with the council to find an acceptable approach.

📌Example:
A council refuses to fund a holiday but agrees to cover a support worker’s travel and accommodation costs. The ISF provider negotiates a shared funding approach that enables the individual to take the break.

Step 5: Maintain Clear Documentation

📌Why it matters:
Good documentation ensures that funding decisions are transparent and accountable. If a dispute arises, well-kept records strengthen the case for funding approval.

Actions for ISF Providers:

✔Keep copies of all correspondence with the council, including emails and formal decisions.
✔Document the person’s needs, the proposed holiday, and how it meets well-being outcomes.
✔Ensure that agreements on ISF use are clearly written and accessible.

📌Example:
A council initially refuses funding but later agrees after reviewing the person’s well-being needs. The ISF provider keeps records of this decision, ensuring there is evidence in case of future funding reviews.

Summary of Practical Steps for ISF Providers

1. Ensure the care plan includes social inclusion and respite needs.
2. Engage with the local authority early to prevent disputes.
3. Provide strong evidence linking the holiday to assessed needs and well-being.
4. Encourage flexible approaches to ISF use.
5. Maintain clear documentation to support funding decisions.

By taking these steps, ISF providers can proactively support individuals, prevent funding disputes, and work in partnership with local authorities to ensure fair, needs-based decisions.

5.Final Thoughts

The Care Act 2014 and Local Government and Social Care Ombudsman (LGSCO) rulings confirm that Individual Service Funds (ISFs) should be used flexibly to meet an individual’s assessed needs. Blanket bans on funding holidays or recreational activities are unlawful, and local authorities must make funding decisions on a case-by-case basis, considering well-being and personal outcomes.

For ISFs to work effectively, partnership working between ISF providers, local authorities, individuals, and families is essential. This ensures that funding decisions are:

✔Person-centred – Supporting well-being, social inclusion, and independence.
✔Flexible – Enabling individuals to make choices that suit their needs.
✔Transparent – Based on clear assessments rather than rigid policies.
✔Legally compliant – Aligning with the Care Act’s principles and LGSCO rulings.

The Role of ISF Providers in Enabling Good Lives

ISF providers have a key role in empowering individuals and promoting flexible, needs-based support. By following best practice principles, providers can:

✔Ensure that care plans reflect personal aspirations and well-being needs.
✔Engage with local authorities proactively to support funding decisions.
✔Challenge restrictive policies in a constructive, evidence-based way.
✔Encourage creative, person-centred solutions that improve quality of life.

By adopting this approach, ISF providers can help individuals live meaningful lives while ensuring public funds are used responsibly and in line with the law.

Working Together to Deliver Better Outcomes

To ensure that ISFs are used fairly, flexibly, and effectively, we encourage:

📌Local authorities to take a collaborative approach when considering ISF requests, ensuring that funding decisions reflect assessed needs and well-being principles.
📌ISF providers to work in partnership with councils and families to create practical, person-centred solutions that enable individuals to live full and meaningful lives.
📌Individuals and families to feel empowered to ask questions, provide evidence, and request reviews when funding decisions do not align with their assessed needs.

Holidays, short breaks, and recreational activities are not luxuries, for many people, they are an essential part of well-being, inclusion, and respite. ISFs should be used to support what matters most to individuals, ensuring they have the same opportunities as others to live a fulfilling life.

By working together, ISF providers, councils, and families can ensure that ISFs remain a powerful tool for choice, control, and independence.

Chris Watson
Chris Watson is the founder of Self Directed Futures, the Chair of SDS Network England and co-founder of LDA Commissioners Network. With extensive experience in strategic commissioning and change management, Chris advocates for innovative, community-led approaches to adult social care.