Frequently asked questions

How much am I likely to receive?
The payment should be equivalent to the local authority’s estimate of the reasonable cost of a service which would meet your assessed needs. If you are using the direct payment to employ someone it should include tax, national insurance contributions and the costs of a criminal records bureau check.

If I receive a direct payment will it affect my social security benefits?
No, the direct payment will be disregarded and will not affect any social security benefit you receive.

I am a young carer - can I have a direct payment?
Although they can be paid to carers over the age of 16, guidance suggests that there may be a limited number of circumstances where direct payments could be useful to help young carers (aged 16 or 17).   Local authorities are also advised that carers of this age may need support to manage a direct payment.

I am already receiving services from the local authority – can I switch to direct payments?
Yes, you can ask the local authority to change to direct payments.

I am not sure whether to go ahead with a direct payment – what should I do?
One option may be to discuss direct payments with other carers in your area who are receiving them. Contact your local carers centre or any organisation which helps with the management of direct payments to see if they can arrange this. If you are already receiving directly provided services, you may want to consider asking for a direct payment for only part of those services so that you can test out whether or not you prefer that arrangement. If there is some delay while you decide whether or not to have a direct payment you should ask social services to arrange any essential services you need until you make a decision.

I’ve tried a direct payment but I’m not happy with it, what can I do?
Direct payments are voluntary, and you can change your mind about them. If that happens you should contact social services as quickly as possible to discuss the matter and ask for services to be provided directly.

As a carer, what involvement do I have with the direct payments for the person I look after?
The basic rule is that a person receiving a direct payment must be able to give consent but guidance to local authorities recommends that direct payments should not be automatically discounted just because the person who would receive them generally lacks mental capacity.     If they can be helped by carers and/or professionals to manage the direct payment then it may still be a very appropriate way of meeting their needs.

In some cases, where the person receiving a direct payment lacks mental capacity, the direct payments can be paid into a ‘user controlled trust’ (also known as an ‘Independent Living Trust’). The trust is used to manage money paid via direct payments but can include money from other sources. Trustees can include family members and/or professionals. Contact the Independent Living Service and/or MENCAP for further information.

Children under 16 cannot receive direct payments in their own right but they can be paid to their parents who will manage them on their behalf. When a parent chooses direct payments the local authority still has responsibility under the Children Act 1989 to assess and review the needs of the disabled child and family.

The person I look after wants to spend their direct payment to pay me to be their carer – is that allowed?
Direct payments cannot generally be used to pay you if you are a family member who is living with the cared for person but if you are not living with the cared for person, it would be possible to use it in this way.

Even if you are living with the person you care for, it is in exceptional circumstances possible for the direct payment to be used to pay you for the care you provide. This is the case where it’s possible to argue that circumstances mean that, realistically, only you could fulfil the role. Religious reasons, language difficulties or specific health problems, among other reasons, may constitute exceptional circumstances.

If you are paid a direct payment by the person you look after, you may need advice about the consequences of becoming an ‘employee’ and receiving what effectively would be wages. Your social security benefits, including Carer’s Allowance, may very well be affected.  Another consequence is that you would lose the right to a carer’s assessment, although you could argue that the local authority still has a discretion to carry one out.  For further advice contact a local Citizens Advice Bureau or CarersLine on 0808 808 7777.

Are there any disadvantages to having direct payments rather than social services providing services?

• You will need to account to social services for the way in which the direct payment is spent, and keep receipts and records.
• If a direct payment is used to employ a personal assistant, that person becomes your employee and you take on all the responsibilities that go with being an employer. For example, you will need to check references, find out if they have had a  Criminal Records Bureau (CRB) check, ensure that  you and your employee have suitable insurance cover and account  to the Inland Revenue for the deduction of income tax and national insurance contributions.
• You will need to check that you have both employer’s liability insurance and public liability insurance – these are sometimes included in a comprehensive household insurance policy. For further information see www.businesslink.gov.uk
• If services arranged with the use of a direct payment run into difficulties, you cannot normally make a complaint to social services in the way that you could if they had been arranged directly. However, in that situation you should expect some assistance and advice from social services.

Is there anyone who can help with managing a direct payment used to employ personal assistants?

• In many areas of the country there are organisations which will help you with recruiting and the paperwork involved, including a payroll service. Ask your local social services about this or contact the National Independent Living Service.
• It’s also possible to employ personal assistants through private agencies rather than advertise directly yourself, although the costs will usually be higher. The agency may have taken to steps to check references, obtain a CRB check or ensure that the personal assistant has insurance cover, but you will need to confirm this with the particular agency you use.

What else do I need to know about direct payments for the person I care for?
The payments cannot be used to pay for their residential care – apart from short breaks of up to 4 weeks.

You may hear the term ‘individual budget’.  This is a development of the idea of direct payments and pools different streams of funding for a person’s social care into one.