A direct payment is money from the council, paid to you instead of the council arranging your care, so you can choose who supports you and when. You can use it to pay a CQC-registered care provider or to employ your own personal assistant, as long as it meets the needs in your care plan. You can add your own money on top, for example to pay for live-in care.
Key facts
- You need a council needs assessment and eligible needs first.
- You can ask for some or all of your personal budget as a direct payment.
- Pay a CQC-registered provider or employ a personal assistant.
- Usually not for a relative who lives with you, unless the council agrees it is necessary.
- The council reviews it within 6 months of starting, then at least once a year.
How a direct payment works, step by step
- Needs assessment: the council looks at what you need help with. It is free.
- Financial assessment: works out what, if anything, you pay towards your care. See paying for care at home.
- Personal budget: the amount the council considers enough to meet your eligible needs.
- Direct payment: you ask for some or all of the budget as money, usually paid into a separate bank account or a prepaid card.
- Care and support plan: you agree with the council how the money will be spent to meet your needs.
- Review: within 6 months of starting, then at least once a year, or sooner if things change.
Who can get a direct payment?
The council should offer a direct payment if you want one and:
- you have the mental capacity to ask for it, or someone (an "authorised person") can manage it on your behalf in your best interests;
- you can manage it, on your own or with help;
- the law does not prevent it; and
- the council agrees it is an appropriate way to meet your needs.
Agency or personal assistant?
| Care provider (agency) | Personal assistant you employ | |
|---|---|---|
| Who is the employer | The provider | You: contracts, minimum wage, tax, National Insurance, pension, insurance |
| CQC registration | Must be registered for personal care | Not needed |
| Cover for sickness and holidays | Arranged by the provider | Your responsibility |
| Training and supervision | Provided and checked | You arrange it |
| Price | Usually higher per hour | Usually lower per hour, plus employer costs |
For live-in care, check whether a company is a managed service (it is responsible for the care) or an introductory agency (it introduces a carer and you are responsible). Our managed vs introductory guide explains the difference. Pinnacle is a CQC-regulated care provider and is not an introductory care agency.
Paying family
A direct payment usually cannot be used to pay a husband, wife, partner or close relative who lives with you. The council can agree an exception if it is necessary, and it must then be written into your care plan. A relative who lives elsewhere can usually be paid. Family carers can also ask for their own carer's assessment.
Topping up for live-in care
The council pays up to the amount it considers necessary to meet your eligible needs. If you would prefer live-in care and it costs more than your personal budget, many people add their own money, or put Attendance Allowance towards it. Ask the council to explain how your budget was calculated and confirm in writing how a top-up will work. Compare prices in how much live-in care costs.
Keeping records
- Keep the money in the separate account and save invoices and receipts.
- Send statements when the council asks; it should not ask for more than it needs.
- Most councils have a direct payments support service that can help with paperwork, payroll and finding staff.
In Cheshire West and Chester
Ask for a needs assessment through the council's online self-assessment or the Community Access Team on 0300 123 7034. The council publishes its direct payment policy on its website. If you are considering live-in care in Chester or Cheshire West, we can give you a written price to share with the council. Contact us.
Frequently asked questions
Can I use a direct payment for live-in care?
Yes, if live-in care meets the needs in your care plan. Councils fund care up to the amount they think is needed to meet your eligible needs, so many people add their own money on top to pay for live-in care. Ask the council to confirm in writing that a top-up is allowed for your situation.
Can I pay a family member with a direct payment?
Usually not if they live with you. The council can agree to it if it is necessary, and the arrangement must then be written into your care plan. A relative who does not live with you can usually be paid.
Do I have to take a direct payment?
No. You can ask the council to arrange your care instead, and you can change your mind later. You can also have a mix: some care arranged by the council and some paid for by direct payment.
What can't a direct payment be used for?
It has to meet the needs in your care plan. It cannot be used for long-term care home placements, and short care home stays are limited. It cannot be used to buy a service the council provides itself.
What happens if I go into hospital?
Payments are not automatically stopped while you are in hospital. Tell the council and your carer or provider so the plan can be adjusted if needed.
Sources
- Age UK: Personal budgets and direct payments in social care (Factsheet 24, November 2024)
- GOV.UK: Social care charging for care and support 2026 to 2027 (17 February 2026)
- Scope: Managing direct payments
- Cheshire West and Chester Council: Request support from adult social care
This guide is general information about care in England. It is not financial, legal or medical advice. Figures were checked on 25 October 2026 and can change.