Paying for community care

A Direct Payment is money paid to you or your representative to allow you to make your own arrangements for care. Direct Payments are available if your needs are going to be met in your own home or in the community, or for short-term stays in a care home.

Direct Payments may not be suitable for everyone. You may decide to have a service arranged for you by us. If you chose Direct Payments, you must spend the money as per the agreed plan to support your needs.

Having a Direct Payment gives you the option to arrange and pay for your own support. 

Are direct payments right for me

Direct Payments can give you more freedom and choice, and come with more responsibility.  Not everyone will want to arrange their own care services. For example, you may not want to if you don't feel comfortable becoming an employer of a Personal Assistant. 

When you take on a Direct Payment, it is your responsibility to make sure there is sufficient money in your account to pay for your care support. Such as Personal Assistant wages and associated costs such as, Payroll costs, Employer Liability Insurance or care agency invoices.  

You will be accountable for your spending and will need to keep track of money coming in to and leaving the account.  

We will require you to provide a record of income and expenditure and copies of your direct payment bank account statements. This is referred to as 'financial monitoring'.

How do direct payments work

A Direct Payment is the amount we give you after subtracting what you can afford to contribute (your Net Assessable Income, or NAI) from the total cost of your care plan (your Personal Budget).

If your Net Assessable Income (NAI) is less than the cost of your care, we will cover the shortfall.

For example:

• your care costs £100 per week
• your Net Assessable Income is £20 per week
• the council will pay you £80 as a Direct Payment.
• you then add your £20 contribution into the same account, so you have the full £100 to pay for your care.

If your NAI is equal to or higher than the cost of your care, you will not be eligible to receive a Direct Payment. Because, the financial assessment shows you have enough income to cover the full cost of your care yourself. In this situation, you would be responsible for paying the entire bill directly to your providers. Though you can still ask us for advice on setting up your care plan, and we will offer information about providers that you can contact to discuss your care and support needs.

What can a Direct Payment be used for

You can use your Direct Payments to organise your care in a way that meets your eligible needs. 

Examples of how you could use your Direct Payment:

• buy equipment and care services from a provider
• employ someone to provide care for you at home
• employ someone to help you do things outside your home. 
• arrange short term breaks or respite care

Can someone else manage my Direct Payment for me

If you understand the decision to receive a Direct Payment but prefer someone else to manage it for you. It can be paid to a nominated person such as a partner, family member, or friend. You and your nominated person will agree together what support they will provide.

If you are unable to make the decision to receive a Direct Payment but it is felt a Direct Payment would be of benefit to you. We can arrange for it to be paid to an authorised person. They may have Lasting Power of Attorney, but this is not a requirement of being an authorised person.

• your authorised person can receive and manage Direct Payments for you. 
• they must make decisions in your best interest, and involve you in the process, and tell us if you are able to take control of the Direct Payment.
• they will be responsible for making sure financial monitoring is completed.

How will the Direct Payment be paid

We will pay your Direct Payment in a way that suits how you plan to use it. This may be as an annual payment, regular four‑weekly payments, or a one‑off payment. Direct Payments are not treated as income or capital, so they will not affect any other benefits you may receive. 

We can help you with ways of managing your direct payment.  We will offer a prepaid card, virtual wallet or a managed account.   

We can help you with ways of managing your Direct Payment and will refer you to our Direct Payment Support Service, Penderels Trust. We talk to you and decide if a Prepaid Card, Virtual Wallet, dedicated bank account or a Third Party Supported Account is right for you.   

Key Payment Dates

Our published payment dates for direct payments are:

Direct Payment Support Service

The Direct Payment Support Service is provided by Penderels Trust. It is a free service which will give you advice and support in using your Direct Payments.

• support and advice in setting up and maintaining your Direct Payment. 
• explaining the option to use a reputable care agency and providing support to help you contact and choose one that meets your needs.
• support and guidance on becoming an employer of Personal Assistants (PA’s). Including advertising, recruitment, setting up contracts of employment and payroll services. 
• support and guidance about using a self-employed Personal Assistant. Including ensuring the PA can be classed as self-employed. 

For more information about our Direct Payment support service, you can visit the Penderels Trust website here.