What Are Direct Payments — and Are They Right for Your Family?
Direct payments are money paid directly to a person, or to someone acting on their behalf, from their personal budget — allowing them to purchase their own care rather than having the council arrange it for them. They are the most flexible way to use a personal budget, giving families genuine control over who provides care, when, and how.
Who can receive direct payments?
Any adult assessed as having eligible care needs and qualifying for council funding can request direct payments. If a person lacks mental capacity to manage the payments themselves, a family member, friend, or attorney can manage them on their behalf — this does not require a formal power of attorney, though having one in place makes the process simpler.
What can they be used for?
Direct payments can fund a wide range of support in line with your loved one's care plan — including employing a personal assistant, purchasing care from an agency, funding day centre attendance, or arranging short-term respite care. They cannot be used to pay for permanent care home placements or for services the NHS should provide.
What are the responsibilities?
If you use direct payments to employ a carer directly, you take on employer responsibilities — including tax, National Insurance, pension contributions and DBS checks. Many families find this manageable with support, but it is important to go in with clear expectations. Councils should provide support and guidance, and some areas have local organisations that help with the administration.
Is it the right choice?
Direct payments suit families who want flexibility and control, and who are comfortable managing the administrative side. They are less suitable if the person lacks capacity and there is no family member available to manage the payments, or if the priority is simply having a straightforward, council-managed arrangement in place.
We can help you understand whether direct payments are the right approach for your family's situation. Speak to us →