TSEM5852 | Trusts for particular purposes: Direct Payment trusts - background

The Department of Health provides for ‘direct payments’ in cash to be made to individuals as an alternative to a local council providing care services. The aim is to allow the individual to manage their own care services. The individual uses the money to pay for personal assistance and also for certain housing, employment, education and leisure activities.

Sometimes direct payments are made via a trust, often referred to as a ‘user-controlled trust’. The trustees may employ personal assistants for the individual and manage all the financial matters associated with the direct payment.