Direct Payments for Care

Direct payments are a way of giving people more control over how their social care needs are met. Instead of the council arranging and commissioning services on your behalf, the council pays the money directly to you (or a nominated person or organisation on your behalf) and you arrange and purchase the care yourself.

Direct payments can be paid to: the person who needs care (if they have mental capacity); a suitable person on their behalf (such as a family member) if they lack capacity; or a trust or other organisation acting on their behalf. Under the Care Act 2014, the council must offer direct payments to those who are eligible and request them.

The amount of the direct payment is based on the personal budget — the amount of money the council calculates is required to meet your eligible care needs. You must use the direct payment to meet your assessed needs. You keep records and accounts, which the council may check.

Direct payments can be used for a wide range of care and support, including:

• Employing a personal assistant (PA) — a care worker you recruit, employ, and manage yourself. This is the most popular use of direct payments;
• Paying a care agency for home care services;
• Funding day services, activities, or community participation that meet your assessed needs;
• Equipment or aids that are part of your care plan.

Direct payments cannot be used to pay for services provided by the council itself, to pay close family members living with you (in most cases), or to purchase things unrelated to your assessed care needs. The support plan and care plan set out exactly what the direct payment is intended to cover.

If you wish to employ a PA, you become an employer and must comply with employment law — including payroll, tax, National Insurance, holiday pay, and DBS checking. Support organisations (often called support brokers or direct payment support services) can help with the practical aspects of employing a PA.

Most councils require direct payment recipients to hold the money in a separate bank account dedicated solely to the direct payment. This makes record-keeping easier and simplifies the council's audit processes.

You will need to keep records of how the direct payment is spent — invoices, receipts, and payroll records. The council will carry out periodic reviews (usually annually) to check that the payment is being used appropriately and that your needs are still being met. If there is underspend, the council may reclaim it; if there is overspend, you may need to contribute from your own funds.

If managing the direct payment is difficult — for example, due to cognitive decline or complex needs — a managed account option may be available, where a third party manages the finances on your behalf. Your council or a local support organisation can advise on managed account services.