Personal Budgets


A personal budget is an amount of money or resources available in order to deliver the outcomes set out in a plan.  The total personal budget should be made clear to parent carers so they can be involved in all decision making in order to choose the right provision to best meet the outcomes identified in the child or young persons care plan.

Personal budgets can be made up in the following different ways,

  • An organisational arrangement No money changes hands. Parent carers find out how much money is available and with support identify the different ways to spend that money meeting the outcomes of the child’s care plan. The services are then arranged on the family’s behalf by the local auhtority or health service.
  • Third party arrangment/nominees A third party organisation, trust or nominated person holds the money and supports parent carers to decide the best way to spend the funding, they then buy the services chosen.
  • Direct payment. Parent carers are given the cash to buy and manage the services themselves to meet the outcomes identified in the child’s care plan.
  • A combination of the above

In addition to the funding idenitifed through the assessment process, some parent carers may want to use a reasonable amount of their available resources to help meet the outcomes identified in their child’s care plan, for example extended family support

Personal budgets for Health

A personal health budget will make it clear to parents and carers how much money is available for the healthcare needs of their child or young person.  They can then discuss and agree the best way it can be spent, to meet the outcomes in the child’s care plan.  This funding will not be able to pay for care normally received from a family doctor or emergency care.

For more information, please read ‘Understanding Personal Health Budgets’

Personal budgets for Education

A new clause has been inserted into the Education Act 2011 to allow ‘Pathfinder’ authorities to test the use of direct payments for meeting special educational needs.

Personal Budgets for Social Care

Currently children and young people with additional needs in Devon, who are eligible, receive a personal budget for their short breaks services through the ‘Short Break Local Offer’ or the Fair Access to Short Breaks Allocation System.