Direct Payments UK 2026

Direct Payments let you take control of your own care. Instead of the council arranging a carer for you, they give you the money directly — and you choose who provides your care.

✍️ Paurav Joshi, Director, Ekvarta Ltd 📅 Last updated: May 2026 🖨️ Print this guide

🔑 Key Facts

  • Direct Payments are your right under the Care Act 2014 (England) — you can request them at any time
  • The money comes from the council and must be spent on your agreed care needs
  • You can use Direct Payments to hire a carer like Ekvarta, or employ a personal assistant directly
  • You do not have to manage the money yourself — a managed account service can do it for you
  • Receiving Direct Payments does not affect your benefits

What are Direct Payments?

Direct Payments are a way of receiving your social care funding. Instead of your council arranging a care package for you — choosing the provider, scheduling visits and managing everything — you receive the equivalent amount of money directly into a separate bank account. You then use that money to arrange your own care.

This puts you in control. You can choose a provider that suits your needs, schedule visits at times that work for you, and change providers if your circumstances change. Direct Payments were introduced by the Care Act 2014 precisely to give disabled and older people more choice and independence.

Who Can Get Direct Payments?

You can get Direct Payments if your local council has assessed you as having eligible care and support needs. To qualify:

  • You must have eligible needs under the Care Act 2014 — this is assessed in a needs assessment
  • You must be able to consent to Direct Payments (or have a suitable person to manage them on your behalf)
  • You must be a working-age adult, older person or disabled person with assessed care needs
  • Carers can also receive Direct Payments following a Carer's Assessment

Even if you currently receive a council-arranged care package, you have the right to switch to Direct Payments at any time.

How to Apply — Step by Step

  1. 1

    Request a Needs Assessment

    Contact your local council's adult social care team and ask for a needs assessment. This is free and is your legal right. The council must carry this out within a reasonable timeframe. You can find your council at gov.uk/find-local-council.

  2. 2

    The Assessment

    A social worker will visit you to understand your care needs, daily living activities and what outcomes you want to achieve. Be honest and thorough — describe difficulties on your worst days. You can have a friend, family member or advocate present.

  3. 3

    Financial Assessment (Means Test)

    The council will carry out a financial assessment to determine how much you contribute. If your capital is above £23,250, you may need to pay the full cost yourself. Below £14,250, you pay nothing. Between these thresholds, you contribute a calculated proportion.

  4. 4

    Request Direct Payments

    Once your eligible needs are confirmed, clearly state that you want to receive your personal budget as Direct Payments. The council must offer this as an option — it is your right under the Care Act.

  5. 5

    Set Up Your Account

    Open a dedicated bank account for the Direct Payments (keep them separate from your personal money — the council requires this). Alternatively, use a managed account service, where an approved provider manages the money on your behalf.

  6. 6

    Choose Your Care Provider

    Now you choose who provides your care. You can select a regulated care agency like Ekvarta, or employ a personal assistant directly. Ensure any provider or PA meets the requirements in your care plan.

What You Can and Cannot Spend Direct Payments On

✅ You CAN spend on:

  • • Regulated care from an agency (like Ekvarta)
  • • Employing your own Personal Assistant (PA)
  • • Equipment and adaptations in your care plan
  • • Day centre activities meeting your needs
  • • Short-term respite breaks

❌ You CANNOT spend on:

  • • Permanent residential care
  • • NHS services (this is covered separately)
  • • Close family members living with you (in most cases)
  • • Anything not in your agreed care plan
  • • Alcohol, cigarettes or gambling

Managing the Money

The council requires you to keep records of how you spend your Direct Payments — usually a simple spreadsheet of income and spending. They will review this periodically. Don't be put off by this — it is straightforward and support is available.

If managing money is difficult, a managed account provider (sometimes called a third-party organisation) can hold and manage the Direct Payments on your behalf. They pay your invoices, keep records and deal with the council on your behalf. Your council can tell you which managed account providers are available in your area.

Employing Your Own Personal Assistant

Many people use Direct Payments to employ a personal assistant (PA) directly rather than using an agency. This gives even more flexibility — you set the hours, the tasks and the working relationship.

If you employ a PA you become an employer, which means you are responsible for their contract, payroll, national insurance, holiday pay and employers' liability insurance. This is not as daunting as it sounds — organisations like Skills for Care and payroll support services can handle this for a small fee, which you can pay from your Direct Payments.

Using Direct Payments with Ekvarta

Ekvarta is set up to work with Direct Payments clients. Here is how it works in practice:

  1. 1

    Contact us

    WhatsApp or email us to say you have a Direct Payments budget and want to use it with Ekvarta.

  2. 2

    We agree a care plan

    We agree the schedule, services and hourly rate — making sure it aligns with your care plan.

  3. 3

    Invoicing

    We invoice you directly from your Direct Payments account. You simply transfer payment from your dedicated DP account to us each billing period.

We are experienced with Direct Payments and can advise on how to make your budget work as effectively as possible. Just ask.

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