A Personal Budget is a sum of money identified by the local authority to fund the provisions outlined in an EHC Plan, with the involvement of the parent or young person in arranging those provisions.

Personal Budgets are optional for a child or young person, but local authorities have a duty to prepare a budget when requested.

The local authority or health service traditionally uses this money to purchase services on behalf of the child/young person and their parents. However, a Personal Budget can be used to give the child's parent and/or the young person choice and control over how their needs are met and the way services they receive are delivered.

Depending on which services the child or young person is eligible for will depend on how the amount is calculated. Different people will have differing amounts depending on their needs.

Requesting a Personal Budget

Parents and carers have the right to request a Personal Budget. This can be done: 

How the Local Authority makes a decision

The Local Authority must then consider the request that has been made. The following steps will be taken: 

  • The child or young persons SEND Officer prepares the decision to come to the Funding and Finance Decision Making Panel.
  • Where the request relates to another service i.e. Social Care or Health, this will go to the appropriate service for agreement.
  • When the request relates to education, we consider the current funding and provision provided within the education setting. We must also gain the permission of the school if any of the goods or services are to be used or provided in a school and therefore, we must seek the consent of the Headteacher, Principal.
  • The Local Authority must make sure that the direct payments do not negatively impact other services provided or arranged for children, young persons, or adults with an EHC Plan that is maintained by the Authority.
  • They also need to ensure that the agreed provision is a good use of their resources.

How are Personal Budgets set up

Once the Personal Budget is agreed, SENSTART Team will confirm this by including this in Section J of the EHC Plan and requesting the funds are made available to the parent via either: 

  • Local Authority (LA) Direct payments
  • An arrangement (whereby the LA, school or college holds the funds and commissions the support included in the EHC Plan, known as an Individual Service Fund)
  • Third party arrangements (where an individual or organisation manage the direct payments on behalf of the Child’s Parent or Young Person / Adult
  • A mixture of the above 

Health Direct payments (also known as Personal Health Budgets) require the agreement of a Care Plan between the NHS Black Country ICB and the child’s parent carer or young person. (This requirement can be fulfilled by sections G and J of the EHC Plan as long as it includes the information).

Personal Budget Policy for Special Educational Needs and Disabilities

Please see the Personal Budgets Policy for full details.

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