ISFs & Third-Party Budgets Explained
Supporting Choice, Control and Independence.
As health and social care continue to embrace personalisation, there is increasing interest in Individual Service Funds (ISFs) and Third-Party Budgets.
Although different terms are often used, both approaches share the same core principle:
The individual remains at the centre of decision-making while an independent organisation manages the budget on their behalf.
This allows people to have greater choice and control over their support without the responsibility of managing payments, payroll or financial administration themselves.
What Are ISFs and Third-Party Budgets?
Both models involve:
✔ A budget being allocated to meet agreed outcomes
✔ Funds being managed by a trusted organisation
✔ Flexible use of support arrangements
✔ Transparent financial management
✔ Regular monitoring and reporting
✔ A focus on independence, wellbeing and personal outcomes
The key distinction is often the source of funding:
Individual Service Funds (ISFs)
Most commonly associated with Local Authority social care funding and Care Act personal budgets.
Third-Party Budgets
Often associated with NHS Personal Health Budgets, Continuing Healthcare funding and integrated health and social care arrangements.
In practice, both approaches are built around the same principles of personalisation, flexibility and accountability.
Why Are They Important?
Not everyone wants to receive a Direct Payment or take on responsibility for managing money, employing Personal Assistants or arranging payroll services.
ISFs and Third-Party Budgets provide an alternative that allows people to:
✔ Maintain choice and control
✔ Access personalised support
✔ Avoid employer responsibilities
✔ Benefit from professional budget management
✔ Focus on achieving outcomes rather than administration
How Empowered 2 Support Can Help
Empowered 2 Support provides independent management of both Individual Service Funds and Third-Party Budgets.
We work alongside individuals, families, Local Authorities, NHS partners and Integrated Care Systems to deliver:
Budget Management
Transparent financial administration
Payment of agreed services and supports
Clear reporting and accountability
Independent Brokerage
Identifying support options
Exploring creative solutions
Supporting informed choice
Support Planning
Outcome-focused planning
Co-production with individuals and families
Flexible and person-centred approaches
Monitoring and Review
Tracking outcomes
Monitoring expenditure
Ensuring support remains effective and responsive
One Approach, Different Funding Routes
Whether funding comes from a Local Authority personal budget or an NHS Personal Health Budget, the goal remains the same:
To help people exercise genuine choice and control over their care and support while ensuring public funds are managed responsibly and transparently.
At Empowered 2 Support, we believe personalisation should be simple, flexible and focused on what matters most to the individual.
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