What Are Direct Payments? A Simple Guide

If you receive support from your local council, you may have heard the term Direct Payment. But what are Direct Payments, how do they work, and can you use one to employ a Personal Assistant?

In simple terms, a Direct Payment is money provided by your local authority to help you arrange and pay for your own care and support, rather than having the council arrange those services for you.

Direct Payments are designed to give you more choice, control and flexibility over how your support is provided.

What is a Direct Payment?

A Direct Payment is part of your Personal Budget.

After assessing your care and support needs, your local authority works out what support you are eligible for and how much funding is required to meet those needs. You can then choose to receive some or all of that funding as a Direct Payment and arrange your own support.

For example, rather than the council arranging a care agency to visit you at set times, you could use your Direct Payment to employ your own Personal Assistant.

This can give you much more control over who supports you, when they work and how your support is provided.

Who can receive a Direct Payment?

Direct Payments can be available to people who have been assessed as having eligible care and support needs.

This can include:

• Disabled adults

• Older people who need care and support

• Carers

• Parents of disabled children

• Disabled young people

The exact rules vary across the UK. In England, you will normally need a social care needs assessment before a Direct Payment can be offered.

Direct Payments are also available in Scotland, Wales and Northern Ireland, although the systems and rules are different in each nation.

What can I use a Direct Payment for?

Your Direct Payment must be used to meet the care and support needs agreed with your local authority.

Depending on your support plan, you may be able to use it to:

• Employ a Personal Assistant

• Pay for support from a care agency

• Arrange respite or short breaks

• Pay for other services that help meet your assessed needs

The important thing is that you cannot simply spend the money on whatever you want. Your Direct Payment should be used in line with your agreed care and support plan.

If you are considering employing your own PA, our guide to Is Employing Your Own PA Right for You? explains what this involves.

Can I use a Direct Payment to employ a Personal Assistant?

Yes. Employing your own PA is one of the most common ways people use a Direct Payment.

Instead of paying a care agency, you can recruit someone yourself and agree the hours, duties and working arrangements with them.

This can give you considerably more control over your support. You can look for someone who has the right experience, personality and interests for you, rather than simply being allocated whoever an agency has available.

If you are employing a PA, however, you become responsible for certain employer responsibilities. This can include things such as contracts, payroll, holiday entitlement, insurance and pension obligations.

You can read more about this in our guide to Becoming an Employer.

How much is a Direct Payment?

There is no standard Direct Payment amount across the UK.

Your local authority calculates your Personal Budget based on your individual assessed needs and circumstances. Your financial circumstances may also be taken into account when determining how much you contribute towards your care.

This means that two people with seemingly similar needs may receive different amounts.

Your Direct Payment may also need to cover more than simply your PA's hourly wage. If you employ a PA, your budget may need to account for things such as holiday pay, employer National Insurance, pension contributions and other employment costs.

For more information about different ways of funding your PA, see How Can You Pay for a Personal Assistant?.

Do I have to use a Direct Payment?

No. A Direct Payment is an option, not something you have to accept.

Your local authority may arrange services for you instead, or you may be able to combine council arranged services with a Direct Payment.

A Direct Payment can be particularly useful if you want more control over your support, but it also means taking on more responsibility for arranging and managing that support.

If you prefer someone else to handle recruitment, payroll and day to day management, a traditional care service may be more suitable.

What are the advantages of Direct Payments?

The biggest advantage is choice and control.

With a Direct Payment, you can potentially choose:

Who supports you: You can recruit a PA who is a good personal fit.

When you receive support: You can agree working hours around your lifestyle.

How your support is provided: You have more say in how your PA supports you.

What works for you: You can build a support arrangement around your own routines, priorities and goals.

The government describes Direct Payments as a way of giving people greater independence, choice and control over their care and support.

Where can I get help with Direct Payments?

You don't have to figure everything out on your own.

Your local council should be your first point of contact if you want to apply for a Direct Payment or have questions about your Personal Budget. You can find your local council through GOV.UK's Direct Payments service.

For independent advice, Disability Rights UK runs a Personal Budgets Helpline offering advice about Direct Payments, social care funding, care needs assessments and employing Personal Assistants. The service is available by phone and email.

You can also find practical resources for people employing their own PAs through Skills for Care. Their resources cover recruitment, employment responsibilities, managing PAs and training.

Finding a Personal Assistant with a Direct Payment

If you have decided to use your Direct Payment to employ a PA, the next step is finding someone who is right for you.

PA Pool allows you to create a client profile and search for Personal Assistants directly.

You can also read our Complete Guide to Hiring a Personal Assistant in the UK for a step by step overview of the recruitment process, or learn How Much Should I Pay My Personal Assistant?.

In summary

A Direct Payment gives you the opportunity to take greater control over your care and support.

Rather than the council arranging everything for you, you can use an agreed Personal Budget to arrange your own support, including employing your own Personal Assistant.

It does involve more responsibility, but for many people the flexibility and ability to choose who supports them and how that support works can make a significant difference.

If you think a Direct Payment could work for you, start by speaking to your local authority about your care and support needs and what options are available.