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Home › Get Help › Adult Support › Direct payments & personal budgets

Choice and control

Adult social care: direct payments and personal budgets

This page is about adult social care personal budgets under the Care Act. It is separate from an EHCP personal budget in the SEND system. A direct payment is one way of receiving and managing some or all of an adult social care budget.

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Personal budget and direct payment are not the same thing

Personal budget

The overall amount the council has identified to meet the person's eligible care and support needs. It should show how much the council contributes and how much, if anything, the person contributes after the financial assessment.

Direct payment

Money paid to the person, or to an appropriate person on their behalf, so they can arrange care or support themselves instead of the council arranging all of it.

Do you have to take a direct payment?

No. A council should not force someone to take a direct payment. Care can be council-arranged, managed by another organisation, paid as a direct payment, or use a combination depending on the plan and local arrangements.

What can a direct payment be used for?

The purpose is to meet the eligible needs and outcomes written into the care and support plan. Direct payments are intended to support flexibility and choice, but the money still has to be used for the agreed care and support purpose.

Examples may include employing a personal assistant, buying agreed support from an agency, arranging community support, or combining support in a different way that still meets the agreed outcomes.

Ask for the care plan and budget in writing

Before agreeing to a direct payment, make sure it is clear which needs the payment is expected to meet, how the amount was calculated, what records must be kept and what support the council provides with payroll or administration.

Can a family member be paid?

A family member who lives somewhere else can generally be paid to provide care through a direct payment, provided the arrangement meets the care plan and local authority requirements.

Paying a close family member who lives in the same household for care is normally restricted unless the council decides it is necessary. The Care Act guidance gives an example where paying parents living with an adult was accepted because their unique understanding of the person's communication and needs made it necessary.

The rules distinguish care from management and administration. In some cases a family member living in the same household may be paid to help manage or administer the direct payment where the council considers that necessary.

What if the person can manage decisions but wants help?

A person with capacity can ask for a nominated person to receive the payment on their behalf. The council still needs to be satisfied that the arrangement can be managed properly and is suitable for meeting the person's needs.

What if the person lacks capacity to request a direct payment?

An authorised person may be able to request and manage the direct payment on the person's behalf, subject to the Care Act conditions. The person's rights, wishes and best interests still have to be respected.

Read the Mental Capacity & Decision Making guide.

Employing a personal assistant

If the person uses the direct payment to employ a personal assistant directly, they may become an employer. That can bring responsibilities around payroll, PAYE, National Insurance, minimum wage, workplace pension duties, insurance, contracts, holiday pay and employment rights.

The Care Act guidance says councils should give clear information about these responsibilities and how to get support. Many areas fund or commission direct-payment support organisations or payroll services.

Questions to ask before saying yes

Can the council tell you exactly which provider to use?

Direct payments are meant to increase choice and control. The council can require that the money meets eligible needs and is used lawfully, but its monitoring arrangements should not unnecessarily remove the flexibility that direct payments are designed to create.

If a direct payment is not working

Ask for a review. The care plan, amount, management support or method of arranging care can be reconsidered. A direct payment is a way of delivering support, not a test of whether a person “deserves” care.

Related Awareverse pages

Financial Assessment · Supported Living & Housing · Mental Capacity · Benefits Assessment Guide

Official sources used for this page

Rules can change. These links are included so you can check the current official position.

England. Last reviewed: 21 September 2026.

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