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If your local authority or trust has determined that you have social care needs and that you are eligible for support, you may be offered direct payments instead of care services.
Choosing to receive direct payments gives you more freedom over how you are cared for and by whom. You can for example use the money to employ your own carer or personal assistant.
What is a direct payment for care?
Receiving direct payments means that you receive cash payments from your local authority or trust instead of social care services. You can then use this money to arrange your own care, which gives you more flexibility and control over how your care is provided.
To receive direct payments, you must first arrange a needs assessment from your local authority or trust. A needs assessment is free, and it is a good idea to get one if you or a loved one is finding it difficult to look after yourselves.
The assessment will establish whether your local authority or trust thinks that you have social care needs. If they do, they will also look at your finances to determine whether they should contribute towards the costs of the care and support you need.
If the financial assessment shows that you are entitled to receive community care services, they will set up a personal budget for you. The personal budget is the amount of money your local council will pay towards whatever social care and support you require.
The amount is determined by the kind of care services and support you need, how much it will cost and how much you can afford yourself.
You can choose to have your local authority to manage your personal budget for you, or a care provider. But, if you want to manage the money yourself you may be able to receive direct payments instead.
What can direct payments be spent on?
There are lots of options available and ways you can spend the direct payments, as long as the support you pay for meets the care plan you have agreed with your local authority.
However, you cannot use direct payments to pay for local authority services.
Direct payments, can for example be used for:
- Pay for a carer from a home care agency to visit you in your home
- Employ a carer privately to ensure it is always the same person who visits you
- Employ a personal assistant
- Short stays in a care home
- Day-time activities
- Equipment or adaptations to help you manage better at home
- Care services for children
How much are direct payments?
How much money you get from direct payments will vary from individual to individual. This depends on your unique care needs and circumstances.
However, the direct payments amount must be high enough to cover the costs of services necessary to meet the needs your local authority or trust are obliged to meet. These needs will be established during the needs assessment and recorded in your care plan.
Your local authority will usually review how you have spent your money every three months.
The payments must cover the actual cost of the service you buy, as well as associated costs. Associated costs can include money you spend on recruiting a carer, national insurance, sick pay, VAT and more.
Even if you have been assessed as having social care needs, you may still have to contribute towards the costs. This will be determined by your financial assessment.
If you have to pay a part of the fees yourself, your local authority will deduct your contribution before making the direct payment. Alternatively, you will receive full direct payments and then have to refund the amount you should contribute.
The maximum amount you can contribute each week is £100.
How are direct payments paid?
If you have chosen to receive direct payments, your local authority or trust will provide you with the money in two ways:
- A bank, Post Office, building society or National Savings and Investments account
- Sending you a pre-paid card
Once the money is in your account, you can choose to spend them how you like as long as the services are relevant to your care plan.
If you want someone else to receive and spend your direct payments, such as a family member, friend or carer, you can contact your council to arrange a decision-making agreement.
How to apply for direct payments
If you already receive help from your local authority or trust, you can apply for direct payments if you would rather arrange the care yourself.
Follow the link to start your application:
