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Example of Flexible Support Contract

This is a real example of a contract between a service provider and a local authority for the use of Individual Service Funds (ISFs). The contract also includes provision for the reduction of support costs agreed between the provider and the local authority. This is a real and functioning arrangement which has been working for over 5 years.

The Local Authority (LA) and service Provider (P) agree that:

1. This arrangement replaces the existing contract between LA and P.

2. P will assist customers listed in Schedule 1 to produce plans that will describe how these people want to live their lives and the supports they will use to do the things cited in their plans.

3. P will assist people to produce plans that are relevant and meaningful to every person covered by this agreement. For some this will entail involving other people who are involved in people’s lives so that plans reflect individual needs, aspirations and interests and allow people to access and contribute to community life.

4. P will complete the planning process with all of the people listed in Schedule 1 by [DATE].

5. LA will provide [MONEY] per year commencing [DATE] to P and P will then divide this money between the persons listed in Schedule 1 into distinct Individual Service Funds (ISFs). The method of calculating the division will be agreed with LA and the individual allocations will be approved by [SOCIAL WORK TEAM].

6. It is anticipated that current ISF allocations will meet people’s needs. P must maintain records of how individual funds have been spent and of the levels of support provided by P or other agencies. These records must also contain details of ‘banked’ funds that have put aside for future use.

7. In the event that P cannot respond to the needs of an individual within existing allocations, they will request the [SOCIAL WORK TEAM] to undertake a review of the individual’s case.

8. LA recognises that the current support provided by P to the people listed in Schedule 1 costs more than LA currently pays for services provided by P. In recognition of this LA will provide P with a management contingency fund of [MONEY] per year for [DATE] and [DATE]. This is to enable P to re-design its business model, reduce costs and to continue to offer service continuity to customers.

9. P must keep a record of savings and efficiencies achieved against its planned savings targets. At the end of each financial year P will report on progress it is making on reducing costs. P and LA will consider the report and agree whether the management contingency can be reduced in the following year, in any event funding for the management contingency will cease on [DATE].

10. LA will pay P a management fee of 15% of the total value of the ISFs and the management contingency. This will be [MONEY] pa.

11. P will provide suitably qualified and experienced staff to support people in ways described in their support plans.

12. P will provide appropriate advice and support to customers to enable them to safely administer and account for their ISFs.

13. Customers will be free to choose to spend their ISF on supports other than those provided by P and are free to leave P services completely by withdrawing their ISF from this arrangement. In the event of a person leaving this arrangement the management fee will reduce in proportion to the value of their ISF.

14. LA will make payments due under this arrangement for Individual Service Funds in 12 equal monthly payments of [MONEY]. Payments will be made through LA automated payment system.

15. LA will make payments due under this agreement for the management fee and management contingency in 12 equal monthly payments (in arrears) of [MONEY] P will invoice LA for these amounts.


The publisher is the Centre for Welfare Reform.

Example of Flexible Support Contract.

No copyright is claimed. You are free to use or adapt this text to the benefit of all citizens. The Centre would also welcome further improvements to this contract. Please contact us directly if you can identify better wording in any area.