Clawbacks 2024/25

Within days of the 2024/25 financial year closing, the embedded reporting functionality within our Virtual Wallet solution had analysed over £100m of direct payments to provide a summary of the unused funds that we returned to clients during the year.  

We are delighted to say that over £7m was physically returned to funding authorities during the 2024/25 year via Virtual Wallet.  These are lots of valid reasons why these sums can accrue or build-up, but it is only when local authorities and ICBs physically get the cash back that they can be recycled in to frontline services.   

"The cheque is in the post"

Some readers will recognise this old adage.  The reality is that our clients received their funds direct in to their bank account during the year, but just for a bit of fun, we produced an 'old-skool' mock cheque for each of our clients and posted it to them (but with instructions not to try and cash it!).  

High Court Ruling

Many people within the sector will be aware of the recent High Court ruling against Lancashire County Council, in which the court made it clear that:

• Councils cannot have blanket policies for reclaiming direct payments. Each case must be looked at individually.
• Unspent direct payments are not automatically “surplus”—people can save money for planned care expenses.
• People must be given a fair opportunity to explain their situation before repayment demands are made.

The difference here is that Virtual Wallet enables funding authorities to approach clawbacks in a considered, sensitive, appropriate and transparent manner that is wholly consistent with both the Care Act 2014 and their wider duties.