Personal budgets and direct payments

What is the Personal Budget referred to in an Education, Health and Care (EHC) Plan?

The Personal Budget (PB) referred to in an EHC Plan is usually an amount of money identified by the Local Authority (LA) to deliver the provision set out in an EHC Plan where the parent or young person is involved in securing that provision.

Who can have a Personal Budget?

The parents of a child with an EHC Plan can have a Personal Budget. So can a young person with an EHC Plan. A young person with an EHC Plan can ask for their own Personal Budget after the end of the school year in which they become sixteen years old.

When can a parent or a young person ask for a Personal Budget?

A parent or a young person can request a Personal Budget when the Local Authority has completed an EHC Needs Assessment and confirmed that it will prepare an EHC plan. They may also request a Personal Budget during a statutory (usually annual) review of an existing EHC plan. 

Who decides if a parent or a young person receives a Personal Budget?

During an EHC Needs Assessment or a statutory review of an EHC Plan, the request for a Personal Budget should be discussed with a representative from the Local Authority to make sure that the Personal Budget would secure provision that meets assessed needs. The Local Authority will consider if the Personal Budget is an efficient way to pay for a service, especially one it already provides.  

What happens if a Personal Budget is not agreed?

If a Personal Budget cannot be agreed, a Local Authority representative will inform the child’s parent or the young person of the reasons it is unable to agree. The LA will continue to work with the parents or the young person to ensure that services are personalised through other means. The LA will set out in writing the reasons for not agreeing and inform the child’s parent or the young person of their right to request a formal review of the decision. The LA will consider any subsequent representation made by the child’s parent or the young person and notify them of the outcome, in writing, setting out the reasons for their decision.

Is there an example where a Personal Budget cannot be used?

A Personal Budget can only be used when it directly relates to an EHC needs assessment. For example, if a Speech and Language Therapist has reported that no therapy is needed for a child, it would be unlikely that the LA would agree a Personal Budget that paid for Speech and Language therapy. A Personal Budget is an alternative way of funding provision, not of changing, increasing or enhancing it. A Personal Budget is not extra funding.

The government says that a Personal Budget cannot be used for:

• the funding of a placement at a school, college or other educational setting;
• general provision for children or young people, including those who need SEN Support.

Where will the Personal Budget arrangements be described?

Details of the Personal Budget will be included in Section J of an Education, Health (EHC) Plan. It will be reviewed annually with the rest of the EHC Plan.

How do the arrangements work?

There are three ways in which arrangements can be made. It is also possible to combine these arrangements:

Direct Payments

Individuals receive the money to contract, purchase and manage services themselves.

Notional budgets

The Local Authority, school or other setting holds the funds and commissions the support specified in the EHC Plan.

Third party arrangements

Funds (Direct Payments) are paid to and managed by an individual or organisation on behalf of the child’s parent or the young person.

Do Personal Budgets cover the full cost of provision?

When Direct Payments (payments made directly to the child’s parent, the young person or their nominee) are used, they must be set at a level that will secure the provision specified in the EHC Plan. If a Direct Payment is not set at a suitable level, it must be reviewed and adjusted.

Can parents and young people have a Personal Budget for all provision specified in an EHC Plan?

This rarely happens as a Personal Budget is not used to purchase a place at a school or other setting. An LA might choose to issue EHC Plans that set out the cost of all the provision. This is a personal budget in the sense that it is the resource allocated to meet the child or young person’s needs but this doesn’t mean that the parents or young people will receive a Direct Payment for any or all of that amount. A Personal Budget more commonly refers to the amount of money identified to deliver provision where the parent or young person is involved in securing that provision. The Local Authority will also consider if a Personal Budget is an efficient way to pay for a service, especially one it already provides. However, if a parent or young person requests it, the Local Authority must prepare a Personal Budget that specifies the cost of the support in the EHC Plan. If the Local Authority cannot do this, perhaps because it cannot separate out an individual amount from a block of funding, it must provide an explanation.

Should parents and young people consider asking for a Personal Budget?

Yes, definitely. The Local Authority welcomes enquiries and is looking for innovative ways in which a Personal Budget can be used to support children and young people with Education, Health and Care Plans.  A Personal Budget may be of particular interest and benefit to young people who will soon be accessing adult services. A Personal Budget can provide more choice and control. 

What should I do if I would like to ask for a personal budget?

Please contact your SEN Casework Officer in the SENMAS team to discuss or request a personal budget.

Email: SENMAS@stoke.gov.uk

Duty Number: 01782 231863 - Monday - Friday 9:30 - 3:30