Helpful Care Information


Funding of Domiciliary Care may come from a variety of sources. You may be in the position to fund the service privately or social services may be able to provide full or part funding through direct payments, or by using a personal budget allocated by the local authority.

As part of the Governments personalisation agenda, direct payments and personal budgets are designed to give service users choice and control over the care services they receive.

Direct payments

Direct payments are designed to give service users greater choice in their care. The service user has the choice which care provider it wishes to employ, this could be in the form of a personal assistant, relative or Care provider such as CareXL.

It should be noted that a service user who uses direct payments to employ carers themselves also take on the responsibility as the employer of that individual and must be aware of the legal requirements that must be met. Income tax, national insurance, liability insurances, care standard regulations and employment law must be maintained.

After a consultation assessment the Local Authority may make direct cash payments to service users in lieu of community care services they need. The payment must be sufficient to enable the service user to purchase direct services to meet their needs, and must be spent on care services which are necessary.

However, they cannot be used to purchase residential care or services provided directly by local authorities.

Qualification for Direct Payment is means-tested so in certain cases some people may need to contribute to the cost of their care.

Personal budgets

A personal budget is a dedicated allocation of social care funding from the local authority given to service users after an assessment, which should be sufficient to meet their assessed needs. People can use this money to purchase services that meet their needs and help them to achieve their outcomes.

  • The money can be managed in a number of ways, by:
  • The person themselves via Direct Payment
  • A representative (an independent living trust, broker or provider organisation) – Adult Social Services through a Local Authority
  • A combination of the above


Useful links

Choosing care at home document from UKHCA

FirstStop Advice is an independent, free service offering advice and information for older people, their families and carers about housing and care options in later life.

National Centre for Independent Living, a national charity which is run by disabled people, for disabled people, in order to promote independent living. NCIL can advise on independent living funds and direct payments.

Paying for Long Term Care in England, advice from the Putting People First Consortium, produced in conjunction with Age UK, Counsel and Care and Solla.