What Are Direct Payments and How Do They Work?
Paying for care can feel overwhelming, especially when you’re also trying to understand what funding may be available through your local council. With different funding options, eligibility criteria, and care arrangements to consider, it’s not always easy to know where to start. At Home Care is here to help you make sense of the process so that you can make the decisions that work for you and your family or loved one.
One option that many people are unaware of is direct payments for care. Rather than having your local authority arrange care services on your behalf, you may be eligible to receive funding directly, giving you the flexibility to choose how care is provided for you or your loved one. This means you can select the care provider that best suits your needs, preferences, and lifestyle.
If you’re considering direct payments for care at home, understanding how they work can help you decide whether they’re the right choice for you or a loved one. In this guide, we’ll explain what direct payments are, who can receive them, how they can be used, and the benefits they offer.
What Are Direct Payments for Care?
Direct payments for care are funds provided by your local authority to help pay for eligible care and support needs. They are usually offered following a care needs assessment, which helps the council understand the type and level of support you require.
Rather than the local authority arranging your care services directly, the payment is made to you, or to someone who manages the funds on your behalf. You can then use the money to arrange and pay for eligible care and support that meets the needs identified in your assessment.
For many people, this can provide greater choice and control over how their care is arranged. Direct payments are designed to support independence, helping people remain safely and comfortably in their own homes while having more say in the care they receive.
Depending on your assessed needs and circumstances, this may include arranging home care services that fit around your daily routine and personal preferences.
Who Is Eligible for Direct Payments?
Direct payments are available to people who have eligible care and support needs. For adults in the UK, this usually begins with a Care Act assessment by the local authority, which looks at how your needs affect your daily life and whether you meet the council’s eligibility criteria.
You can find out more about Care Act assessments through the NHS.
Adults With Eligible Care Needs
If your local authority’s assessment finds that you have eligible care and support needs, you may be offered a personal budget, with direct payments being one way of managing this funding. This can give you greater flexibility to arrange eligible care and support that meets your assessed needs, rather than having the council arrange services on your behalf.
Importantly, eligibility is not simply based on your age or a particular diagnosis. The local authority considers:
- Your individual circumstances
- Care and support needs
- How those needs affect your wellbeing and ability to manage everyday activities
For example, Hertfordshire County Council considers the impact of physical or mental impairment or illness, the areas of daily life where you need help, and the effect on your health and wellbeing. You do not necessarily need a formal diagnosis to meet its care eligibility criteria.
You can check Hertfordshire County Council’s eligibility criteria if you live in the area and want to understand more about how assessments work.
Parents Of Disabled Children
Direct payments are available to parents or people with parental responsibility for a disabled child, depending on the child’s assessed needs and the support available through the local authority. For example, Hertfordshire County Council allows eligible families to request direct payments instead of certain services arranged by the council.
The purpose is to give families greater flexibility and control over how their child’s assessed support needs are met. Eligibility and the arrangements available can vary depending on the child’s circumstances and the local authority involved.
Carers may also be eligible
Unpaid carers can sometimes receive direct payments following a carer’s assessment. The assessment looks at the impact of caring on the carer’s wellbeing and what support may help them continue in their caring role. Hertfordshire County Council, for example, states that carers can request an assessment and may receive a direct payment where this is agreed.
Eligibility depends on your individual circumstances
It is important to remember that there is no single rule based purely on age, illness, disability, or diagnosis. Your local authority will assess your individual needs and circumstances to determine whether you are eligible for care and support and whether direct payments are an appropriate option.
At Home Care in your local area
If you receive direct payments and are considering home care, At Home Care can help you arrange personalised domiciliary care and support that fits around your needs and daily routine. We provide a range of home care services designed to help people remain independent, comfortable and supported in their own homes.
Our local care services are available across Berkhamsted, Redbourn, St Albans and Harpenden, as well as surrounding areas. Whether you need help with personal care, mobility, medication, companionship, household tasks or more specialist support, our care can be tailored to your individual circumstances.
- Abbots Langley
- Ardeley
- Bedmond
- Berkhamsted
- Bourne End
- Bovingdon
- Chesham
- Chipperfield
- Flamstead
- Harpenden
- Hemel Hempstead
- Kings Langley
- Leavesden
- Markyate
- Tring
- Watford
- Welwyn Garden City
- Wheathampstead
Abbots Langley
Ardeley
Bedmond
Berkhamsted & Northchurch
Bourne End
Bovingdon & Chesham
Chipperfield
Markyate & Flamstead
Harpenden
Hemel Hempstead
Kings Langley & Nash Mills
Leavesden
Piccotts End
Potten End
Redbourn
St Albans
Tring
Welwyn Garden City
Wheathampstead
Watford
If you’re exploring your options for direct payments for home care, our team can also help you understand how our services may fit within your care arrangements. Get in touch with the At Home Care team to discuss your needs and find out how we can support you
How to Apply for Home Care Funding Through Social Services
Contact your local authority.
Get in touch with your local council's social care team and explain that you need help with care and support. You can also ask about having a care needs assessment.
Request a care needs assessment.
Your local authority will assess your care and support needs and how they affect your everyday life. This helps determine whether you meet the eligibility criteria for support.
Financial assessment (means test where applicable).
If you have eligible care needs, the council will carry out a financial assessment to determine whether you need to contribute towards the cost of your care and how much you may need to pay.
A care and support plan is agreed.
Your agreed plan will set out the outcomes your care should help you achieve and the funding available towards your eligible needs.
Choose direct payments if appropriate.
This gives you greater flexibility to choose and arrange eligible care and support that fits your circumstances.
The council will explain how the payments are managed.
Your local authority will explain how your direct payments work, including how the money is provided, what you can spend it on, and how the payments need to be managed. If you do not feel able to manage the payments yourself, you may be able to nominate someone to manage them on your behalf.
For individuals needing round-the-clock support, many home care providers like us At Home Care will provide live-in care.
What Exactly Can Direct Payments Be Used For?
If you are eligible for support following a care needs assessment, direct payments for care can give you greater flexibility over how your eligible care and support needs are met. The exact ways you can use your direct payments will depend on your care and support plan and the rules set by your local authority. They are intended to pay for services and support that meet the eligible needs identified during your assessment.
Depending on your individual care and support plan, direct payments may be used towards things such as:
- Personal care – Support with washing, dressing, using the toilet and other everyday personal care needs.
- Care at home – Help with daily activities so you can continue living independently in your own home.
- Companionship and social support – Assistance with staying connected to your community and taking part in activities.
- Support with daily routines – Help with tasks that you have been assessed as needing support with.
- Specialist care and support – Depending on your assessed needs, funding may contribute towards more specialist forms of care.
It’s important to check with your local authority before arranging or paying for a service, as direct payments cannot necessarily be used for anything you choose. Your council will explain what your payments can be spent on and how this relates to your agreed care and support plan.
Who Can Receive Direct Payments?
Direct payments are available to people who have been assessed by their local authority as having eligible care and support needs. Eligibility is based on the outcome of your care needs assessment.
Who Can Manage Direct Payments?
If you’re unable to manage the payments yourself, you may be able to have someone else manage them on your behalf. Depending on your circumstances and your local authority’s arrangements, this could be a family member, trusted friend, or nominated representative.
Your local authority will explain the options available and what responsibilities are involved in managing the payments.
If you’re unsure whether you qualify for direct payments, your local authority can explain the assessment process, eligibility criteria and funding options available to you. A trusted home care provider may also be able to help you understand the types of care and support available and how they could fit around your assessed needs.
Remember, the final decision about your eligibility and funding rests with your local authority following its assessment. Getting an assessment is a good first step towards understanding what support may be available to you or your loved one.
FAQs about Direct Payments
What are direct payments for care?
Direct payments are funds provided by your local authority to help you pay for eligible care and support needs. They give you greater choice and control over how your care is arranged.
Who qualifies for direct payments?
People who have eligible care and support needs following a local authority assessment may qualify. Eligibility depends on your individual needs and circumstances, not simply your age or diagnosis.
Can I use direct payments to pay a home care agency?
Yes, direct payments can generally be used to pay for eligible care from a home care agency, provided the service meets the requirements of your care and support plan. Check with your local authority before making arrangements.
Do I have to manage the payments myself?
Not necessarily. If you’re unable to manage the payments yourself, your local authority may allow a family member, trusted friend or nominated representative to manage them on your behalf.
Are direct payments means tested?
The care funding itself is generally linked to a financial assessment which determines whether you need to contribute towards your care costs. The exact arrangements depend on your local authority and circumstances.
