Personal Budgets and Direct Payments: Taking Control of Your Care
Personal budgets and direct payments give you choice and control over your care. This guide explains how they work, the pros and cons, and how to manage them effectively.
Important
A personal budget is the amount your council calculates you need to meet your eligible care needs. Direct payments let you receive this money to arrange your own care, giving you maximum flexibility and control.
After a care needs assessment, the council sets a personal budget - the total cost of meeting your eligible needs. This can be managed in different ways.
- Direct payment - money paid to you to arrange care yourself
- Council-managed - council arranges services on your behalf
- Individual Service Fund - third party manages the budget for you
- Combination - mix of the above approaches
- Choose your own carers and care provider
- Flexible timing - care when you need it
- Can employ personal assistants directly
- More control over how care is delivered
- Can be more cost-effective
With direct payments, you become an employer if you hire personal assistants. This means managing payroll, tax, holiday pay, and insurance. Support is available to help with this.
Request direct payments through your care needs assessment. The council must offer this option if you have eligible needs. Support services can help you manage the practicalities.
Your local Direct Payments Support Service can help with paperwork and employment. Age UK: 0800 678 1602. Skills for Care provides employer resources.
Frequently Asked Questions
What's the difference between personal budgets and direct payments?
A personal budget is the calculated amount for your care. Direct payments are one way to receive that budget - as cash to arrange your own care. Alternatively, the council can manage it for you.
Can I employ a family member with direct payments?
Yes, in certain circumstances you can employ family members, but generally not those living in the same household. The council assesses each case individually.
What support is available for managing direct payments?
Local Direct Payments Support Services help with employment, payroll, and administration. Many areas have pre-payment card systems that simplify record-keeping.
Can I choose my care provider with direct payments?
Yes, that's a key benefit. You can choose any registered care provider or employ personal assistants directly, giving you full control over who provides your care.
Need More Help?
Support Organisations
- Age UK:0800 678 1602
- Carers UK:0808 808 7777
- Alzheimer's Society:0333 150 3456
- Parkinson's UK:0808 800 0303
Care Directory Support
Sources & References
- Gov.uk
- Skills for Care
- SCIE