When your child or young person has an Education, Health and Care (EHC) plan, the local authority (LA) must make sure all the support written in the plan is provided.

Usually, the LA does this by:

  • Giving money directly to the school or college, and
  • Arranging any extra support, such as therapy.

Sometimes, instead of arranging everything itself, the LA can give you the money so you can organise the support. This is called a direct payment.

Before you can have a direct payment, the LA must first work out a personal budget.

Important to remember

A personal budget or direct payment:

  • Is only for the support written in Section F of the EHCP
  • Cannot be used for extra things like:
    • Home tuition
    • After-school clubs
    • Extra therapies not listed in Section F

What is a personal budget?

A personal budget is:

  • The estimated amount of money needed to provide the support written in the EHC plan.
  • A notional amount. This means it is a figure on paper, not money automatically paid to you.

Important points:

  • You can only have a personal budget if you or a child/young person has an EHCP.
  • Personal budgets are optional, and you do not have to ask for one.
  • You can find out more from the Local Offer.

When can I ask for a personal budget?

You can ask:

  • When you receive a draft EHC plan
  • During an EHC plan review
  • After an EHC needs assessment or reassessment

The LA does not have to consider a personal budget at other times.

How can a personal budget be used?

The SEND Code of Practice states that there are four ways a personal budget can be managed:

  1. Direct payments
    You receive the money and arrange the support yourself.
  2. An arrangement (notional budget)
    The LA, school, or college keeps the money and arranges the support.
  3. Third-party arrangements
    Someone else (a person or organisation) manages the money for you.
  4. A combination
    A mix of the options above.

What is a direct payment?

A direct payment means:

  • You receive money and you arrange the support written in the EHCP yourself.
  • The payment must be enough to cover the cost of that support.

You can ask for a direct payment at the same time as asking for a personal budget.

When can the LA refuse a direct payment?

The LA can refuse if:

  • It believes the money would not be managed properly
  • It thinks the money might be used inappropriately
  • It would negatively affect other services
  • It would not be good value for money

If the support is to be provided in a school or college, the headteacher or principal must agree. If they do not agree, a direct payment cannot be made.

What if the LA says no?

If the LA refuses a personal budget or direct payment:

  • You cannot appeal to the SEND Tribunal
  • You can ask the LA to review its decision
  • You can challenge the decision if you believe it was unfair

Where can I find more information?