There seems to be some confusion amongst pilot authorities about whether they are actually piloting direct payments for SEN - even when they are listed on he statutory instrument implementing the pilot 
This is what I have found out.
An amended Section 532B of the Education Act enables the Secretary of State to make pilot schemes for direct payments for SEN by order. An order has been made: the Special Educational Needs (Direct Payments) (Pilot Scheme) Order 2011 (SI 2012/206).
These regulations came into force on 30 January 2012 and the pilot scheme is for a period of two years. The pilot applies to the 36 local authorities listed in Schedule 2.
Whether the local authority likes this/understands this or not, if a local authority is a pilot authority, then it should be (as a minimum) providing information and advice about the scheme with any SEN statement or LDA issued since the pilot started (para 3 of the regulations), considering any request for direct payments (para 3) and then giving reasons and a right of review of any decision not to make direct payments (para 13).
I also understand that guidance is awaited from the Dept of Education on this topic.