Adult Social Care Glossary, v 0.6

(1) A local authority must conduct a review for the purpose of ascertaining whether the making of direct payments is an appropriate way to meet the adult's needs--
(a) at least once within the first 6 months of the direct payment being made and at intervals not exceeding 12 months thereafter;
(b) if it considers that there has been a breach of a condition and that it may exercise its discretion under section 33(5) of the Act (power to terminate payments or require repayment) in respect of that breach;
(c) in the case of a direct payment made to meet the needs of an adult under section 31 of the Act, whenever the local authority considers that--
(i) that adult no longer has the capacity to request it to meet any of those needs by the making of direct payments to the adult; or
(ii) condition 3 (adult or nominated person is capable) or 4 (making direct payments to adult or nominated person is appropriate) of section 31 of the Act is no longer met;
(d) in the case of a direct payment made to meet the needs of an adult under section 32 of the Act, whenever the local authority--
(i) considers that the adult no longer lacks the capacity to request the local authority to meet any of those needs by the making of direct payments to the adult; or
(ii) is notified by any person of concerns that the direct payment may not have been used to meet the needs for which the payment was made; or (iii) considers, or is notified by any person of concerns, that condition 3, 4 or 5 of section 32 of the Act is no longer met.

[Regulation contains further detail]