Definition
A personal budget is an identified amount of funding within an EHCP that parents or the young person can choose to direct themselves, in agreement with the local authority, towards securing the provision in the plan. The right to request a personal budget is set out at section 49 of the Children and Families Act 2014 and regulations 6–7 of the SEND (Personal Budgets) Regulations 2014.
In context for parents
Key checkpoints
- A personal budget is an identified amount of funding within an EHCP that parents can direct themselves, in agreement with the LA.
- Set out at section 49 Children and Families Act 2014 and regulations 6–7 of the SEND (Personal Budgets) Regulations 2014.
- Four delivery routes: direct payment, notional budget, third-party arrangement, combination.
- LA can refuse on specific regulation 8 grounds; must give reasons in writing.
- The personal budget figure must appear in Section J of the EHCP if one is in place.
A personal budget can cover education, health, or social care provision in the plan, and can be delivered in four ways. Direct payments: the money comes to the family (or a managed account) and they commission the provision. Notional budget: the LA holds the money but the family is told the figure and how it is being spent. Third-party arrangement: the budget is paid to an organisation (often a charity) that commissions on the family's behalf. A combination of these.
In practice, personal budgets in the education element of an EHCP are uncommon and disputed. SaLT, OT, and physio provision is occasionally commissioned via direct payment (Section F provision), particularly where NHS waits are long. Health provision (Section G) routed via a Personal Health Budget (PHB) is more established. Social care provision (Section H) is the most common route to a personal budget: short breaks, respite, support workers.
The LA can refuse a personal budget request only on specific grounds (regulation 8): if the provision could not be made via direct payment (for example, provision being delivered as part of a school's standard offer); if it would have an adverse impact on services to other young people; or if it would not be an appropriate use of public funds. The LA must give reasons.
The personal budget figure must be in Section J of the plan if one is in place. Without a Section J figure, there is no personal budget.
Related terms
The terms parents most often see alongside Personal Budget.
Direct Payment
A way of receiving the personal budget element of an EHCP as cash, so families can commission services (such as therapy or 1:1 support) directly rather than via the LA.
Education, Health and Care Plan(EHCP)
A legally binding document, issued by a local authority in England, that describes a child or young person's special educational needs and the provision the LA must arrange to meet them.
Section F (EHCP)
The section of an EHCP that sets out the special educational provision the local authority must secure. Wording should be specific, quantified, and unambiguous (often called 'SMART').
Where parents ask about this
Parents usually find this page after a long NHS therapy wait, when commissioning private therapy alongside an EHCP, or when negotiating social care respite hours. Searches include "EHCP personal budget direct payment", "Personal Health Budget therapy", and "Section J EHCP". A Beaakon advocate can draft the personal budget request, identify which provision can lawfully be routed via direct payment, and challenge a refusal on the regulation 8 grounds.
References
The primary legislation, statutory guidance, research, and clinical tools this page draws on.