If the council agrees to fund your care, you don’t have to accept whoever they’ve commissioned. A direct payment lets you take the money and choose your own provider — and for most families, that’s the difference between a rota of strangers and a small, consistent team.
Personal budget vs direct payment
Two terms, often confused:
- Personal budget — the amount West Sussex County Council calculates is needed to meet your assessed eligible needs. Everyone with council-funded care has one.
- Direct payment — one way of receiving that budget: as money paid to you, rather than the council arranging care itself.
You have three options for how the budget is delivered:
| Option | Who arranges care | Admin burden |
|---|---|---|
| Council-managed | The council, from its contracted providers | None |
| Direct payment | You | Moderate — records and returns |
| Individual Service Fund | A chosen provider holds the budget | Low — a middle path |
You can also mix: part managed, part direct payment.
Why families choose direct payments
- Choice of provider. Council-commissioned care goes to whoever holds the contract and has capacity. A direct payment lets you pick on quality, CQC rating and continuity.
- Continuity of carers. The most common reason, and the thing families care about most.
- Timing that suits you. Council packages often come with fixed visit windows; buying directly gives more say over when.
- Flexibility in how it’s spent — within the rules, the budget must meet the assessed outcomes, and that can sometimes be achieved creatively rather than with standard visits.
- You can top it up. Add your own money to buy more hours or a preferred provider.
What comes with it
Be clear-eyed about the admin, because it’s the reason some families revert to a managed budget.
- A separate bank account for the direct payment, kept apart from personal money
- Records and returns — invoices, receipts, and periodic statements to the council
- Spending only on meeting the assessed needs set out in your care and support plan
- If you employ a carer directly, you are the employer — contracts, payslips, PAYE, National Insurance, pension auto-enrolment, holiday pay, sick pay, employer’s liability insurance, DBS checks and cover when they’re away
That last point matters. Using a direct payment to buy from a CQC-registered agency avoids all of it — the agency is the employer, and you simply pay invoices. Most families who employ a carer directly do so for the cost saving and the continuity, and most who find it overwhelming didn’t realise what they were taking on.
West Sussex County Council and local support organisations offer direct payment support services — payroll, managed accounts, recruitment help. Ask what’s available before you decide; it changes the calculation considerably.
What you can and can’t spend it on
Generally yes: a CQC-registered home care agency, a personal assistant you employ, respite care, equipment that meets an assessed need, and sometimes activities or transport that achieve an agreed outcome (getting to a day service, maintaining a social life).
Generally no: anything unrelated to the assessed needs, long-term residential care fees, gambling or debt repayment, and — usually — paying a family member who lives in the same household.
That last rule has exceptions. Councils have discretion in exceptional circumstances, and family members living elsewhere can sometimes be paid. Ask before assuming either way.
How to get one
- Have a care needs assessment — free, a legal right, regardless of savings
- Financial assessment determines your contribution. Capital above £23,250 means self-funding; your property isn’t counted for care at home
- Agree a care and support plan setting out the outcomes the budget must achieve
- Request a direct payment. The council must offer one where you’re eligible and able to manage it, with or without support
- Set up the account and sign the agreement
- Choose your provider and start
You can change your mind. If the admin proves too much, you can move back to a council-managed budget.
Other routes that work the same way
- Personal Health Budget — the NHS equivalent, available to many people eligible for NHS Continuing Healthcare
- Carer’s direct payment — following a Carer’s Assessment, sometimes a one-off amount for something that sustains you. See carer burnout
Find care near you
Tell us your postcode and what you need help with. We pass your details to one vetted CQC-registered agency in your area — you are told who they are, and that they pay us a fee, before anything is sent.
Frequently asked questions
What is a direct payment for care?
Money paid to you by the council instead of it arranging care itself, so you can choose your own provider or employ a carer directly. It’s one way of receiving your personal budget — the amount the council calculates is needed to meet your assessed needs.
Do I become an employer with a direct payment?
Only if you employ a carer directly — then yes, with contracts, payroll, tax, pension, holiday pay, insurance and cover to arrange. Using the payment to buy from a CQC-registered agency avoids all of that, because the agency is the employer.
Can I use a direct payment to pay a family member?
Usually not for someone living in the same household, though councils have discretion in exceptional circumstances. Family members living elsewhere can sometimes be paid. Check with the council before making any arrangement.
Can I top up a direct payment with my own money?
Yes. Many families add their own funds to buy more hours than the budget covers or to use a preferred provider. Keep the accounting clear between the two.
What if managing a direct payment becomes too much?
You can switch back to a council-managed budget, or to an Individual Service Fund where a provider holds and manages the money for you. Ask the council about direct payment support services first — payroll and managed account help is often available.
The Care Panel is an independent publication. We are not a care provider and are not regulated by the Care Quality Commission, because we do not deliver care. Always check a provider’s own CQC registration and inspection report before you commit.
Written and fact-checked by The Care Panel. Last updated September 2026. Based on the Care Act 2014 and statutory guidance. General information, not financial or legal advice.