Local Authority Direct Payments

Using a Direct Payment
for home care?

CareAH helps you use your council Direct Payment budget to find CQC-registered home care agencies near you — with transparent pricing, GPS-verified visits and a full audit trail for your council.

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What is a Direct Payment?

A Direct Payment is money your local council pays directly to you (or your representative) so you can arrange your own social care, rather than letting the council choose your care for you. It gives you control over who provides your care, when it happens and how it is delivered.

You can use a Direct Payment to hire a CQC-registered home care agency to visit you at home. The council will ask you to keep records showing how you've spent the money — usually through bank statements and invoices from your agency.

If you've been told you're eligible for a Direct Payment, CareAH makes it straightforward to find a suitable agency and stay on top of your council paperwork.

Who can get a Direct Payment?

Direct Payments are available to adults and children across England who have been assessed as needing care or support. Eligibility is set by law — the Care Act 2014 for adults, and separate arrangements for children and NHS care. If you meet the needs assessment threshold, your council must offer you a Direct Payment as an option.

Adults needing social care

If your local council has carried out a needs assessment under the Care Act 2014 and confirmed you meet the eligibility threshold, you can request a Direct Payment as the way to receive your care and support.

Parents of disabled children

Parents or guardians can receive a Direct Payment on behalf of a disabled child following a children's services assessment.

NHS Continuing Healthcare recipients

If you qualify for NHS Continuing Healthcare (CHC), you can ask for a Personal Health Budget, which can be paid as a Direct Payment for healthcare.

Section 117 mental health aftercare

People entitled to mental health aftercare under Section 117 of the Mental Health Act 1983 can also receive a Direct Payment.

If the person needing care doesn't have the mental capacity to manage a Direct Payment themselves, a “suitable person” — usually a family member, friend or appointed representative — can receive and manage the payment on their behalf. The council will check that the arrangement is in the person's best interests.

Find the official eligibility rules on gov.uk.

How much is a Direct Payment worth?

According to the Department of Health and Social Care's 2024/25 figures (ASCOF, published Dec 2025; checked April 2026), around one in four adults receiving long-term social care in England uses a Direct Payment — roughly 160,000 people in total.

The amount you receive depends on your council's needs assessment. The council works out the number of hours of care you need each week, multiplied by their Personal Budget hourly rate. This is called your “indicative budget”. You may also be asked to complete a financial assessment — if you have savings or income above the council's threshold, you may be expected to contribute towards the cost.

How much your council pays per hour varies across England. As a floor, councils typically benchmark against the National Living Wage (£12.21 per hour from April 2025, per gov.uk; checked April 2026). Rates paid for CQC-registered home care agencies are higher than rates for individually-employed Personal Assistants, because they include training, insurance, travel and management costs. Check your council's published Direct Payment rate — most publish this on their adult social care website.

You can “top up” your Direct Payment with your own money if you want to book more hours of care than your council funds. You cannot use council money to pay for top-ups — that must come from your own funds.

Why families on Direct Payments choose CareAH

Everything you need to find good care and prove you're spending your budget correctly.

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CQC-registered agencies only

Every agency on CareAH is registered with the Care Quality Commission. Inadequate or deregistered agencies are automatically removed.

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Transparent, agreed hourly rates

No phone haggling. Agencies submit their rate when bidding for your care. You see the cost clearly before committing — no surprises.

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Full audit trail for your council

Every visit is GPS-timestamped at clock-in and clock-out. You receive a record of all delivered hours — your council evidence sorted automatically.

Verified reviews from real families

All reviews are tied to a real booking. You can trust what you read — no paid listings, no fake testimonials.

How it works

Three steps from postcode to booked care.

01

Enter your postcode

Search for CQC-registered home care agencies near you. Every agency on CareAH is verified against the Care Quality Commission register.

02

Compare agencies & request care

See transparent hourly rates, CQC ratings and real reviews from verified families. Submit one request and matched agencies respond directly to you.

03

Book and keep your audit trail

Confirm your booking, and every visit is GPS-verified with timestamps. You get a complete record of delivered hours — exactly what your council needs.

What can you spend a Direct Payment on?

Your Direct Payment must be spent on services that meet the care needs identified in your support plan. Your council agrees the plan with you upfront and reviews it annually. Within those boundaries, you have real choice.

You can spend it on

  • CQC-registered home care agencies
  • Personal Assistants (PAs) employed directly by you
  • Respite care and short breaks
  • Day services
  • Equipment that helps meet your assessed needs
  • Transport to attend care-related activities

You cannot spend it on

  • Permanent care home placements (different funding route)
  • Services provided by the NHS
  • Anything illegal
  • Paying a close family member who lives in the same household (councils may grant exceptions)
  • Household bills, food, or rent
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You must keep records of

  • Bank statements showing Direct Payments received and spent
  • Invoices from agencies or timesheets from Personal Assistants
  • Receipts for any purchases or equipment
  • An annual summary for your council's review

Failing to keep records, or spending outside your care plan, can result in the council reclaiming the funds. CareAH's GPS-timestamped records are designed specifically to simplify this — every booking through CareAH generates verifiable evidence of delivered care.

Built-in council compliance

Your council audit trail, sorted automatically

CareAH uses GPS clock-in and clock-out at every visit. Each confirmed visit generates a timestamped record you can use as evidence for your council's Direct Payment audit — no chasing invoices, no spreadsheets.

Frequently asked questions

What is a Direct Payment?

A Direct Payment is money your local council gives you directly to arrange your own social care, rather than the council arranging it for you. You use the money to hire a home care agency (or personal assistant) of your choice. You must keep records showing how the money was spent.

Who is eligible for a Direct Payment?

Anyone who has been assessed as needing care by their local council under the Care Act 2014 can request a Direct Payment. This includes adults needing social care, parents of disabled children, people receiving NHS Continuing Healthcare, and those entitled to mental health aftercare under Section 117.

How much is a Direct Payment worth?

The amount is set by your council based on a needs assessment and a financial assessment. It depends on the hours of care you need and your council's hourly rate. Rates vary across England — check your council's adult social care website for their current Direct Payment rate.

Can I pay a family member using my Direct Payment?

Generally no — you cannot use Direct Payment money to pay a close family member who lives in the same household as you. Councils can grant exceptions in specific circumstances, but you would need to discuss this with your council's Direct Payment team in advance.

What happens at my annual Direct Payment review?

Once a year, your council will review your care and support plan to check that your needs haven't changed and that the Direct Payment is still the right option. They'll ask to see evidence of how the money has been spent — bank statements, invoices, timesheets, and receipts. Keeping good records throughout the year makes this much easier.

Can I use CareAH if I have a Direct Payment?

Yes. CareAH is ideal for Direct Payment recipients. You can search for CQC-registered agencies, compare their rates, book care and receive GPS-verified visit records — all of which help you account for your Direct Payment to your council.

How do I prove I've spent my Direct Payment correctly?

CareAH automatically records every visit with GPS clock-in and clock-out times. After each visit you receive a record of delivered hours and the agreed rate. This gives you a clear, timestamped audit trail to show your council.

Is CareAH free for families?

Yes. Using CareAH to find and manage home care is completely free for families and Direct Payment recipients. There are no sign-up fees or subscription charges.

Do I need to pay my agency through CareAH?

You can pay through the platform. CareAH tracks every visit with GPS clock-in and clock-out, giving you a clear record of delivered hours to include on your council paperwork. Payment arrangements are agreed directly with your chosen agency at the point of booking.

What if my council has already given me a list of agencies?

Your council's list may be out of date. CareAH pulls directly from the live CQC register so you'll always see current, active agencies. You can search for agencies your council approved — or find comparable alternatives nearby.

New to the sector and still preparing your CQC application? See our CQC Registration Checklist for the full pre-registration toolkit.

Ready to find care near you?

Enter your postcode to see CQC-registered home care agencies in your area. Free for families. No sign-up needed to search.

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Agency data sourced from the Care Quality Commission (CQC) under the Open Government Licence. Ratings and inspection data © Care Quality Commission.