Andrew
I work in an LA which is contracted out. The administration of DHP’s can be dealt with by the service provider. However, the LA must authorise payment and hold the budget. Technically is does state that is cannot be contracted out.
We found that by allowing the service provider to deal with the admin side ie recommendation, putting on computer and notification we were duplicating work. This was because the recommendation was sent to me and I would have to work through the claim and decide if the figures used etc were correct. After a year or so we made the decision to deal with the whole process in house. I found that I could keep better control of my budget as no one other than myself or my section can amend/grant a dhp.
I am happy to discuss this with you.