Skip to main content

{{ root_page.title }}

Personal Budgets - EHCP

From 1st September 2014 The Children and Families Act and associated regulations in relation to children and young people are in force and a new coordinated Education, Health and Care Plan (EHC Plan) replaces the historic system for Statements of Special Educational Needs. 

One of the central themes of Part 3 of the Children and Families Act 2014 is making sure that services and support are 'personalised'. This means that children, young people and their families have as much choice and control as possible over the support they need and that any support is built around the individual rather than trying to fit into existing services or ways of support, if these are not appropriate. 

A Personal Budget is an amount of money identified by the local authority to deliver provision set out in an EHC Plan where the parent or young person is involved in arranging that provision. 

There are four ways in which a Personal Budget can be delivered: 

  • Direct Payments made direct into a individual's bank account which allows them to purchase and manage services themselves. 
  • An arrangement with the local authority, school or college where they hold the funds and commission the support specified in the plan (sometimes called a 'notional arrangement') 
  • Third party arrangements - where funds (direct payments) are paid to and managed by an individual or organisation on behalf of the child's parent or the young person. 
  • A combination of all of the above.