Personal budgets for special educational needs

What is the difference between a Personal Budget and a Direct Payment?

A Personal Budget shows you what money there is to make some of the provision specified in an EHC plan, and who provides it. The parent or young person does not actually manage the funds directly.

With a Direct Payment the parent or young person is given the money for some services and manages the funds themselves. The parent or young person is responsible for buying the service and paying for it.

A Personal Budget can include a Direct Payment if it is agreed that this is the best way to manage part of the Personal Budget.

Direct payments can be used for special educational provision in a school or college only if the school or college agree. Local authorities can refuse a direct payment for special educational provision if it would make things worse for other children and young people with an EHC plan, or if it would be an inefficient way to pay for services.

It is also possible to have a Third Party Arrangement to manage a Direct Payment.

How much will I get if I have Direct Payments?

How much you get will depend on what has been set out in the EHC plan. So it will vary from one person to another.

If the local authority has agreed to make a Direct Payment it must be enough to pay for the service or services specified in the EHC plan.

Are there other kinds of Personal Budget?

Yes – some people have had Personal Budgets for health provision (a Personal Health Budget) and for social care provision (e.g. Fair Access to Short Breaks). They may have managed some or all of the provision using a Direct Payment. But this is the first time that Personal Budgets have become available for SEN provision.