Direct payments

This allows you to arrange and manage your own care instead of the Council organising services for you.

Who can get direct payments?

To be eligible for direct payments, you must:

• be assessed as needing care and support under the care act 2014
• be able to manage direct payments independently or with support from a nominated person
• be a resident of Lewisham receiving Council-funded care

Who cannot receive direct payments?

Direct payments are not available for individuals who:

• are under certain court orders (eg, under the mental health act 1983)
• cannot manage funds (even with support)
• have savings above 23,250 and must self-fund their care

How do direct payments work?

• funds are paid every four weeks via a prepaid card
• you must use the funds to meet the agreed outcomes in your support plan
• you can hire a personal assistant (PA), pay for home care services, or purchase equipment

What responsibilities will I have with direct payments?

Direct payments offer a great deal of flexibility and independence, but along with that comes certain responsibilities. 

If you choose to employ someone 

If you hire a personal assistant (PA) or other staff, you must:

• ensure anyone you employ can legally work in the UK
• register with HMRC (Her Majesty's Revenue and Customs) for tax and national insurance
• arrange employers liability insurance

Help with becoming an employer

The direct payments team can provide support with:

• understanding employment laws (wages, holiday entitlement, maternity leave)
• registering with HMRC and sourcing a payroll company
• drafting and managing employment contracts
• recruiting the right people
• guidance on liability insurance options
• managing the monitoring process to track spending

Council-supported direct payments (managed accounts)

If you want to use direct payments, but need help administering payments, you can request a Council-supported direct payment (managed account).

How does it work?

• the Council makes payments on your behalf in line with your support plan
• you remain responsible as the direct payment recipient
• you do not need to complete any monitoring  the Council handles financial oversight

This option is useful for individuals who may struggle with financial management but still want control over their care arrangements.

Managing direct payments for yourself or a third party

Direct payments remain public funds, which means they must be accounted for.

Your responsibilities

• you must keep a record of all spending
• you need to keep receipts and invoices for all transactions
• the Council monitors spending to ensure funds are used for their intended purpose

Monitoring process

• you must submit financial records monthly
• the direct payments team can provide guidance on record-keeping
• long-term users of direct payments can still request advice and support at any time

What can direct payments be used for?

• employing a personal assistant (PA)  to help with personal care and daily activities
• care services  hiring an agency to provide support
• live-in or overnight care  for those needing 24-hour assistance
• transport  to attend appointments or participate in community activities
• specialist equipment  such as wheelchairs, stairlifts, or sensory aids.

What can't direct payments be used for?

• paying family members living in the same household (unless an exception is granted)
• general living costs (eg, rent, household bills, food, holidays)
• care services that do not meet Council-approved standards

Council-supported payroll and managed accounts

If you do not want to manage direct payments yourself, the Council can:

• offer a managed account service  where payments are handled on your behalf
• signpost to payroll support providers  to help manage employer responsibilities

What happens if your needs change?

If your care needs change, you can request a reassessment. Direct payments are reviewed at least once a year to ensure they continue to meet your needs. 

Appeals and complaints process

If you disagree with your direct payment amount or have an issue with your care plan, you can:

• request a review - contact your social worker
• appeal the decision - follow the complaints process on the Council website
• get support - seek independent advice from advocacy services

More information

• Kitbag
• Your guide to direct payments in Lewisham (pdf)