Individual Service Funds Explainer

Author: Chris Watson

Individual Service Funds (ISFs) have become a vital option for people drawing upon social care, offering people the opportunity to take control of their support and shape it around their lives. At their best, ISFs empower individuals to focus on their goals, make meaningful choices, and achieve outcomes that traditional care systems struggle to deliver. But the promise of ISFs can only be realised if they are implemented with care, structure and a genuine commitment to flexibility.

A real ISF is not just a funding mechanism. It’s a way of shifting power to the individual, creating a system that works for them rather than the other way around. However, without a clear process, ISFs can easily lose their focus, becoming little more than a rebranding exercise that offers no real change.
To ensure ISFs achieve their potential, we need to follow a set of key steps that keep the individual at the centre. These steps guide everything from the initial assessment to ongoing review, making sure that the ISF remains relevant, transparent, and impactful.

The Key Steps for Making ISFs Work

1. Holistic Assessment: Start by understanding the individual’s aspirations, challenges, and support needs. This isn’t just about identifying care tasks—it’s about exploring what matters most to the person and what will help them thrive.
2. Transparent Budget Allocation: Converting care hours into a flexible, spendable budget that reflects the individual’s assessed needs. This process must be fair, clear, and adaptable.
3. Choosing an ISF Provider: Give the individual the freedom to select a provider who can manage their budget effectively and ethically, acting as a partner in achieving their goals.
4. Co-Designing a Support Plan: Work with the individual to develop a plan that focuses on outcomes rather than tasks, offering flexibility to adapt as circumstances change.
5. Using the Budget Flexibly: Ensure the individual can spend their budget creatively and purposefully, whether on personal assistance, equipment, or activities that align with their priorities.
6. Monitoring and Reporting: Track how funds are used, ensuring transparency and accountability while celebrating progress toward the individual’s goals.
7. Regular Reviews and Adaptation: Revisit the plan regularly to ensure it remains relevant and responsive to the person’s changing needs and ambitions.
8. Ensuring Compliance and Safeguarding: Protect the individual’s autonomy and rights through robust safeguards and adherence to legal and ethical standards.

Why These Steps Matter

These steps aren’t just a process—they are the foundation of what makes an ISF effective. By following them, we move beyond ticking boxes and focus on delivering real, meaningful outcomes. A well-implemented ISF gives people the freedom to live the lives they choose, while ensuring that funds are used responsibly and transparently.

ISFs have the potential to transform care, but only if we approach them with the seriousness they deserve. A structured process ensures that every ISF delivers on its promise, creating real, lasting impacts for individuals and their families.

In the sections that follow, we’ll explore each of these steps in more detail, unpacking how they work and why they’re essential to creating a true ISF. 

This isn’t just about doing things differently—it’s about doing things better.

A Detailed Step By Step Overview

Steps for Implementing an Individual Service Fund (ISF)

1. Conducting a Holistic Needs Assessment

Purpose: To understand the individual’s unique needs, aspirations, and current challenges.

Key Actions:

• A professional care assessor (e.g., social worker or care coordinator) engages with the individual, their family, and advocates to identify what is important to the person and forthe person.
• The assessment explores physical, mental, and social care needs, as well as personal goals such as independence, employment, or community participation.
• Collect feedback from professionals (healthcare providers, therapists) and community-based resources to ensure a well-rounded view.

Outcome: A comprehensive care plan that identifies the goals and areas where support is required.

2. Allocating a Personal Budget

Purpose: To ensure funding reflects the individual’s assessed needs and outcomes.

Key Actions:

• Calculate the individual’s personal budget based on national or local funding frameworks and benchmarks, such as hourly care rates or specific service costs.
• Ensure the budget is transparent, breaking down how much funding is allocated for various aspects of care and support.
• Provide the individual or their representative with a clear explanation of how the budget was determined.
• Offer flexibility, allowing for adjustments if needs change or errors are identified.

Outcome: A clear and agreed-upon personal budget that empowers the individual to plan and manage their support.

3. Selecting an ISF Provider

Purpose: To entrust the management of the individual’s fund to a provider who aligns with their needs and values.

Key Actions:

• Provide the individual with a list of approved ISF providers, ensuring they have the freedom to choose.
• Facilitate discussions between the individual and potential providers to assess compatibility, values, and service offerings.
• Define the provider’s responsibilities, including financial management, service coordination, and compliance with legal frameworks.
• Establish a written agreement outlining how the provider will administer the ISF and support the individual in achieving their goals.

Outcome: A trusted partnership with an ISF provider who ensures the individual’s funds are used effectively and transparently.

4. Co-Designing a Support Plan

Purpose: To create a personalised and flexible plan that outlines how the budget will achieve the individual’s goals.

Key Actions:

• Collaborate with the individual, their family, and the ISF provider to develop a support plan centred on outcomes rather than hours or tasks.
• Identify the types of support required, such as personal assistance, skill development, equipment, or community engagement.
• Include provisions for flexibility, such as reallocating funds if the individual’s priorities or circumstances change.
• Integrate monitoring and review mechanisms to track progress and ensure the plan remains relevant.

Outcome: A detailed support plan that is person-centred, goal-oriented, and adaptable to changing needs.

5. Implementing and Managing the ISF

Purpose: To deploy the budget effectively, ensuring services and resources align with the individual’s preferences and outcomes.

Key Actions:

• Use the ISF to purchase services, equipment, or activities as outlined in the support plan. Examples might include hiring a personal assistant, attending courses, or funding social activities.
• Coordinate services to ensure seamless delivery, avoiding duplication or gaps in care.
• Maintain transparent financial records, ensuring all spending aligns with the agreed-upon plan and legal requirements.
• Enable the individual to provide feedback and make real-time adjustments to their services.

Outcome: Support is delivered in a way that meets the individual’s goals while maximizing the value of the allocated budget.

6. Monitoring and Reporting

Purpose: To ensure the ISF is used appropriately and continues to deliver meaningful outcomes.

Key Actions:

• Regularly review financial reports to track spending and identify underspent or misallocated funds.
• Evaluate the effectiveness of the support provided, measuring progress against the individual’s goals.
• Use monitoring to identify any changes in the individual’s circumstances that require updates to the support plan.
• Provide reports to the individual, their family, and the funding authority, fostering transparency and accountability.

Outcome: Clear evidence of how the ISF is achieving its intended purpose, with adjustments made as necessary.

7. Reviewing and Adapting the Support Plan

Purpose: To ensure the ISF remains relevant and responsive to the individual’s evolving needs and aspirations.

Key Actions:

• Schedule periodic reviews (e.g., every six months or annually) to revisit the support plan and budget allocation.
• Engage the individual, their family, and other stakeholders to discuss progress, new goals, or emerging challenges.
• Adjust services or funding allocations to better align with the individual’s current circumstances or future aspirations.
• Use the review process to incorporate lessons learned and continuously improve the approach to support.

Outcome: A dynamic and flexible system of support that evolves with the individual’s needs and preferences.

8. Ensuring Compliance and Accountability

Purpose: To uphold standards and ensure funds are used ethically and legally.

Key Actions:

• Ensure ISF providers comply with statutory requirements, such as the Care Act, safeguarding principles, and financial management regulations.
• Implement regular audits to confirm funds are being used as intended and deliver value for money.
• Address any concerns or complaints swiftly, ensuring transparency and fairness in resolving disputes.
• Provide the individual with the knowledge and tools to understand their rights and responsibilities within the ISF framework.

Outcome: Trust and confidence in the ISF system, with robust safeguards to protect all stakeholders.

Key Benefits of This Process

• Flexibility: Individuals can tailor their support to match personal goals and changing needs.
• Empowerment: People have control over their care, choosing services that align with their values and priorities.
• Transparency: Clear processes and financial reporting build trust between individuals, families, and funding authorities.
• Accountability: Providers are held to high standards, ensuring funds are used responsibly and effectively.

Setting an ISF budget

Step 1: Assessing Needs

In traditional models, an assessment determines the number of care hours required for specific tasks, such as personal care, meal preparation, or companionship. 

Under an ISF model, the same assessment identifies:

The individual’s goals: What do they want to achieve (e.g., independence, community involvement)?

Support needs: What type of assistance is required to achieve these goals (e.g., skills training, equipment, companionship)?

Cost implications: The financial equivalent of meeting these needs. For example, if someone needs 10 hours of personal care per week at £20 per hour, their annual care cost would be £10,400. This can become the starting point for their ISF budget.

Step 2: Converting Time into Value

Instead of assigning care hours to specific tasks, the total value of those hours is converted into a flexible budget. This allows the individual to "spend" their budget on various supports that achieve their desired outcomes. 

This process ensures:

The hourly cost of traditional care is used as a baseline.

Additional costs (e.g., admin fees for ISF management, travel expenses) are factored into the final budget.

For instance, the £10,400 annual cost of 10 care hours per week becomes a spendable budget for the individual to use creatively.

Step 3: Designing a Flexible Support Plan

The individual works with an ISF provider to create a personalized plan. Instead of being locked into rigid care hours, the budget is used to purchase services or resources that align with their goals.

Examples of Budget Conversion in Practice

Sarah’s Case: From Care Hours to Independence

Traditional Model: Sarah would have been allocated 12 hours per week for tasks such as meal prep, shopping, and companionship.
ISF Approach: The equivalent budget of £12,480 (£20/hour x 12 hours/week x 52 weeks) was turned into a spendable fund. Sarah used this to:
Attend weekly cooking classes (£1,500 annually).
Hire a personal assistant for social activities (£8,000 annually).
Use the remaining funds for ad-hoc support and activity fees, helping her build skills for independent living.
Outcome: By redirecting funds toward skill-building and social engagement, Sarah achieved independence and reduced her reliance on personal assistants.

Maya’s Case: From Structured Hours to Employment

Traditional Model: Maya might have been allocated 8 hours of weekly support for tasks such as community outings or anxiety management.
ISF Approach: The £8,320 budget (£20/hour x 8 hours/week x 52 weeks) was converted into flexible funding. Maya used this to:
Pay for weekly mindfulness classes to manage anxiety (£1,000 annually).
Hire a job coach to assist with workplace skills (£5,000 annually).
Fund travel training (£1,500 annually) to help her commute independently.
Outcome: Instead of being tied to fixed care hours, Maya’s ISF allowed her to develop long-term skills, leading to part-time employment.

David’s Case: From Respite Hours to Family Support

Traditional Model: David’s family was offered 15 hours of weekly respite care.
ISF Approach: The £15,600 budget (£20/hour x 15 hours/week x 52 weeks) was turned into a flexible ISF. The family used it to:
Arrange 10 hours of weekly respite care (£10,400 annually).
Purchase sensory toys and equipment (£2,500 annually).
Cover the costs of short-term overnight care during emergencies (£2,700 annually).
Outcome: The ISF allowed the family to prioritize their most urgent needs while improving David’s sensory engagement.

James’s Case: From Specialist Care Hours to Holistic Support

Traditional Model: James might have been allocated 40 hours of specialist care per week for health monitoring and mobility support.
ISF Approach: The £41,600 budget (£20/hour x 40 hours/week x 52 weeks) was converted into flexible funding. James’s family used it to:
Hire a small team of specialist carers (£30,000 annually).
Purchase adaptive equipment (£5,000 annually).
Fund physiotherapy sessions (£6,600 annually).
Outcome: The ISF ensured James’s complex health needs were met while providing additional resources for long-term well-being.

Step 4: Monitoring and Adjustments

Regular reviews ensure that the budget is being used effectively. If outcomes are not being met, or if needs change, the support plan and budget allocation can be adjusted.

Why This Matters

• By converting care hours into a flexible spendable budget individuals gain control over how support is delivered.
• The focus shifts from completing tasks to achieving meaningful outcomes.
• Resources can be used creatively to meet unique needs.
• Budgets can adapt to life changes, unlike static care hour allocations.

In conclusion, the success of Individual Service Funds lies not only in their promise of flexibility and personalisation but in the simplicity and inclusivity of their implementation. By streamlining processes and removing unnecessary complexity, we can make ISFs accessible and effective for everyone involved. 

Crucially, every stage of designing and delivering an ISF must be co-produced with those who know the system best—people with lived experience, support providers, and commissioners. This collaboration ensures that ISFs are built on real insights, reflect local priorities, and address the practical realities of delivering meaningful support. 

When we bring everyone to the table, we create systems that are not only fit for purpose but genuinely transformative. 

Simplifying, co-producing, and listening are the keys to making ISFs work—for people, for communities, and for the future of social care.

The publisher is Citizen Network Research. Individual Service Funds Explainer © Chris Watson 2024.