Direct Payments for Care: What They Are, Rates & What You Can Spend Them On

What Are Direct Payments for Care?

Direct Payments are funds provided by your local council to help you pay for your own care and support services. Instead of the council arranging your care, the money is paid directly to you so you can choose how your care is delivered.

This gives you more control, flexibility, and choice over who provides your care and how it fits into your daily life.

Direct Payments can be used for:

• Hiring a live-in carer
• Paying for home care services
• Employing a personal assistant (PA)
• Accessing community activities and support

You can read about funding options here.

Who Is Eligible for Direct Payments?

You may be eligible if:

• You’ve had a care needs assessment from your local council
• You’ve been assessed as needing support
• You’re able (or have someone to help you), manage the payments

Direct Payments are available to:

• Older adults needing care
• Disabled adults
• Parents of children with care needs
• Carers in some situations

You can learn more via the NHS social care and support guide and the GOV.UK Direct Payments guidance.

How Much Are Direct Payments Per Hour?

There is no fixed national hourly rate for Direct Payments. The amount you receive depends on:

• Your care needs assessment
• Your local council’s funding rates
• The type of care required

Typical UK Direct Payment Rates

While rates vary, many councils provide funding roughly in the range of:

• £15 to £25 per hour for standard home care
• Higher rates for specialist or complex care needs

These figures are based on typical UK local authority funding ranges and industry averages, though exact amounts vary by council.

To compare costs, see home care costs in the UK.

It’s important to note:

• Some providers may charge more than your allocated rate
• You may need to pay a top-up cost if your chosen care exceeds your budget

What Can Direct Payments Be Spent On?

Direct Payments are designed to meet your assessed care needs, but they offer flexibility.

You can usually spend Direct Payments on:

• Hiring a carer or personal assistant
• Live-in care services
• Help with personal care (washing, dressing, mobility)
• Support with household tasks
• Transport to appointments or social activities
• Equipment or minor home adaptations

You typically cannot spend them on:

• General household bills (e.g. rent, utilities)
• Anything unrelated to your care needs
• Gambling, alcohol, or illegal activities
• Paying close family members (unless agreed)

How to Apply for Direct Payments

To get started:

1. Contact your local council and request a care needs assessment
2. Discuss your preference for receiving Direct Payments
3. Agree on a care and support plan
4. Set up a Direct Payment account
5. Start arranging your care

You can begin via the GOV.UK’s social care needs assessment guide.

Pros and Cons of Direct Payments

Advantages

• Greater control and flexibility
• Ability to choose who provides your care
• More personalised support

Considerations

• Responsibility for managing funds
• Possible extra costs or top-ups
• Admin tasks if employing carers directly

Key Takeaways

• Direct Payments give you control over how your care is arranged
• Typical funding is around £15–£25 per hour
• You can spend them on a wide range of care services and support
• They’re ideal for people who want flexibility and personalised care

Need Help Managing Direct Payments?

Understanding and managing Direct Payments can feel overwhelming, especially when navigating local council processes, assessments, and funding decisions.

At Elder, we specialise in helping families make the most of their care funding, including guiding you through how Direct Payments work and how they can be used to arrange high-quality care at home.

Whether you’re exploring your options or ready to arrange support, our team can help you:

• Understand how Direct Payments apply to your situation
• Navigate conversations with your local council
• Find trusted, experienced carers who fit your needs