Direct payments should only be used to employ close relatives in exceptional circumstances, the Association of Directors of Social Services has urged in its response to a government consultation.

The ADSS told the Department of Health that it supports individuals in employing close relatives where there is no available alternative. However, guidance "should state that this remains an exception and close relatives should not be employed as a rule". This is in order to preserve individuals’ independence.

The ADSS was responding to the consultation on the Community Care (Direct Payments) Act 1996 draft policy and practice guidance. It welcomed guidance on making jointly-funded payments with health, but claims that an opportunity has been missed to make it a duty for health to fund them, "leaving it open for them not to do so".

The ADSS also explained how the performance indicator system for assessing social services does not encourage the extension of direct payments, as the indicator for intensive home care specifically excludes direct payments in calculating the council’s performance.

Also in its response the ADSS says that direct payment users should not have to pay VAT on personal care as a council using the same agency would not have to pay tax.

The consultation period has now closed.