Direct payments for care

If your local council, or HSCNI, agrees to fund some or all your care services, they’ll offer you the choice of:

• providing services to you

• receiving direct payments to arrange and pay for care services yourself, or

• a ‘mixed package’, with some services provided and others that you buy out of your direct payments.

If you accept direct payments from your local council, or HSCNI, but change your mind later, you can ask them to provide the services to you instead. You might do this if you’re finding it difficult to manage the payments.

The direct payments you receive must be enough to meet the care needs that your local council, or HSCNI, has assessed for you. 

If you choose direct payments, the council, or HSCNI, will send you the money directly into:

• prepaid cards – some councils will help you set this up

• your bank or building society – you'll likely need a separate account for direct payments.

You can only use direct payments to pay for the care services outlined in your care plan. You can't use direct payments to buy services already provided by your local council, or HSCNI. But you have the freedom to choose other providers or services if they better suit your needs. 

You can also use direct payments to buy equipment to help you live more independently. Ask your local council, or HSCNI, about preferred suppliers, so you can shop around for the best deal.

Your local council, or HSCNI, will check how you use the payments, so keep receipts to show how you spend the money.

They'll tell you what information to provide, like timesheets or invoices and when to provide it. 

It’s helpful to have a separate bank account for direct payments to track spending, as you may need to show the bank statement to your local council, or HSCNI. If you can't account for everything you spend or use the money for things not in your care plan, you might have to pay it back.

Usually, you can't use direct payments to pay for informal care from a spouse, partner, or close relative living with you, unless they're registered as a carer. But in some cases, your local council, or HSCNI, might agree if it's necessary. 

In England, you might be able to pay them to manage your direct payments. 

Usually, direct payments can't be used for permanent residential accommodation. But you might be able to use them for short periods if your local council, or HSCNI, agrees that’s what you need. 

The rules for direct payments vary depending on where you live. Contact your local council, or HSCNI, to find out what rules applies to you.

You can use your direct payments to employ a carer, but be aware you’ll take on certain responsibilities as an employer. This means you’ll have to think about National Insurance, Income Tax, National Minimum Wage, sickness and holiday pay, pension, and liability insurance. 

Find out more in our guide Employing someone to help with your care.

To receive direct payments, you first need to ask your local council, or HSNI, to assess your care needs.

After the assessment, you’ll get a care plan. This is a written agreement setting out what needs you have, which your local council, or HSCNI, will meet.

They’ll also carry out a financial assessment to see if you qualify for financial help. How much you get depends on your financial circumstances, and you might need to top them up with your own money.

If you qualify for financial help, your local council, or HSCNI, will discuss direct payments as an option with you when they assess your care needs.

If you already receive care services, ask your local council, or HSCNI, about direct payments in:

• England, Wales or Scotland apply for direct payments at GOV.UKOpens in a new window

• Northern Ireland, at nidirectOpens in a new window

Your local council, or HSCNI, can help you with managing your direct payments.

Also, many local voluntary organisations and social enterprises can provide personalised support in managing your direct payments and creating your care plan. These organisations are independent from your local council or HSCNI.

Disability Rights UK offer advice on direct payments and employing a carer. See the Disability Rights UKOpens in a new window website or call their Personal Budgets Helpline on 0330 995 0404.

In Northern Ireland, you can download the Department of Health, Social Services and Public Safety’s  information booklet on direct paymentsOpens in a new window

If your situation changes, contact your local council or HSCNI as soon as possible so they can reassess your payment level. You might qualify for more money. 

If your condition improves temporarily, or you go into hospital, and don't need to spend the full amount, they may need to decrease your payments.

If you no longer want to manage direct payments yourself, your local council or HSCNI must arrange services instead. Similarly, if they think you can’t manage with direct payments, they might offer services directly, if there’s no one nearby to help manage them for you.

If you can’t manage your own direct payments or nominate someone else, another person can ask to become an authorised person. This can be a friend or family member. They will then manage your direct payments on your behalf.