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Direct Payments

What direct payments are and how to use them, understanding the risks involved in managing a direct payment and ensuring care plans meet the person's needs.  Also, what support is available from People Plus (commissioned service). 

Direct Payments

"I can decide the kind of support I need and when, where and how to receive it"

The London Borough of Camden (LBC) is committed to ensuring that the option of a Direct Payment is explored with, and understood by, everyone who is eligible to receive one.  They will be given information about Direct Payments at the point of assessment and review, and will have access to appropriate information, support and advice, in an accessible format, throughout the whole process.

To see the current Direct Payment guidance please visit Camden Care Choices.

For feedback on commissioned providers for direct payments users please see the 'Reporting Safeguarding and Quality Concerns' page.

What is a direct payment (DP)

If Adult Social Care has agreed that someone is eligible for support, they may be offered a personal budget. A way that the person can manage their personal budget is by receiving a direct payment (DP).

A direct payment is a cash amount based on the person’s agreed personal budget.

Direct payments enable people to arrange and buy individually tailored care and support agreed in their care plan. This would enable them to live as independently as possible as they have choice and control over their own care and support.

When may a person receive a DP

Practitioners should be routinely offering a DP as part of day to day conversations with a resident. They do not need to wait until their next care review.

Also, a person may be able to request to have a DP set up at any point in their care journey.

A financial assessment (FA7) needs to be completed in advance of the DP being set up.

Attached is a map showing a sequence of actions and decision to take, starting from when a discussion about DP begins, to when a DP is in place.  The sequence of steps sets out the responsibilities at each stage of the process.

Who is eligible for a DP

People that are eligible and consent to receiving a Direct Payment include:

  • adults with a mental, physical or learning disability
  • unpaid Carers of adults with a mental, physical or learning disability
  • an authorised person who agrees to manage a direct payment for a person who lacks capacity according to the Mental Capacity Act 2005
  • a nominated person where the eligible person has capacity but does not wish to manage the Direct Payment themselves
  • a person living in long-term residential care may receive Direct Payments for non-residential care services, for example, to try out independent living or for additional day activities.

Other roles that support with DP

In addition to Practitioners providing support with setting up a DP, there are other services and teams that are involved in other aspects of a DP.

  • People Plus and their responsibilities

People Plus are the commissioned DP support service.

Once a DP is fully set up and in place, People Plus do not stay actively involved with ongoing DPs. However, they will offer advice and support whenever the DP recipient or the DP team contact them directly.

Further information about People Plus's role is available on the Practice Guide.

  • Direct Payments Team’s responsibilities

The team monitors the DP 6 months after it has been set up to understand:
- how the DP is being managed
- any areas of concern
- what additional support the DP recipient requires.

The team coordinate completion of a signed Direct Payment Agreement that sets out expectations for the person managing the DP to ensure they are aware of their responsibilities.

The team is responsible for carrying regular checks on direct payments to ensure the money is spent in line with the agreed outcomes in a person’s support plan, and that public funds are properly accounted for.

Direct Payment Rates 2025/2026


New standard and agency direct payment hourly rates for 2025/26 have now been agreed.

There has been a 5.32% increase to allow for people who draw on direct payments to pay the London Living Wage whilst also having sufficient capacity to build contingency funds and cover other employment costs.

The new rates have been inputted into Mosaic and Direct Payments will be paid at the new rate from 1st April 2025.

If someone is on a variable direct payment rate this has not been uplifted and will need to be approved individually.

From 1 April 2025, the rates are:

Standard Direct Payment (normally used to pay for personal assistants) - £19.80 per hour

Agency Direct Payment (used to pay homecare agencies to provide support) - £22.03 per hour

Please contact [email protected] for any questions regarding the new rates.

See below for the current rate, until 31 March 2024.

Standard direct payment rate (normally used to pay for personal assistants) is £18.80 per hour. 

Agency direct payment rate (used to pay homecare agencies to provide support) is £20.92 per hour. 

Last updated: 21 March 2025