EHCP personal budgets and direct payments explained

An EHC plan personal budget is the amount identified as available to secure particular provision in the plan. It is not automatically cash paid to a parent or young person. A direct payment is only one possible arrangement.

This guide covers England and provides general information, not financial or legal advice.

What a personal budget can show

Section 49 of the Children and Families Act 2014 allows a parent or young person to request a personal budget when a draft EHC plan is being prepared or during a review or reassessment.

The budget can bring together funding for agreed education, health or social-care provision. Section J of the plan records personal-budget arrangements and any direct payments.

The key question is which assessed provision is capable of being organised through the budget. It is not a general payment for having SEND.

Four ways provision may be arranged

A personal budget may use one or a mixture of:

• direct payments: money is paid to the parent, young person or nominee to arrange agreed provision
• notional arrangements: the public body retains the money and commissions support
• third-party arrangements: another organisation manages the funds
• a combination: different items use different routes

Ask the local authority to explain what amount is available, what it covers and how each item will be managed.

When can you request one?

You can request a personal budget when the local authority is preparing a draft plan, or when it reviews or reassesses an existing plan. Make the request in writing and link it to specific provision.

A useful request explains:

1. the need and outcome involved
2. the provision required
3. why greater choice or control would help
4. the proposed arrangement and provider, if known
5. how quality, safeguarding and review would be managed

Limits on direct payments

A direct payment for special educational provision can only cover provision specified in Section F. It cannot be used to purchase the school or college place itself.

Where provision would be delivered on school or college premises, the headteacher or principal's consent is generally required. Public bodies must also consider whether the payment would adversely affect other services or represent an inefficient use of resources.

A refusal to make a direct payment is not normally appealable to the SEND Tribunal. Ask for written reasons and a formal review, then consider the local complaints process and Ombudsman route.

The plan still needs specific wording

A personal budget does not replace a clear Section F. The plan should still state the type, frequency, duration and expertise required. Otherwise it may be unclear what the budget is supposed to secure.

Check that Section J does not move legally enforceable educational provision out of Section F.

Questions to ask before agreeing

• Is the amount sufficient for the specified provision?
• Who employs and supervises any worker?
• What insurance, safeguarding or payroll duties apply?
• What happens during absence or provider failure?
• How are receipts and accounts recorded?
• When will the arrangement be reviewed?
• Can the public body recover unspent or misused funds?

Direct control can be valuable, but it can also create administrative responsibility. Compare it with a notional or third-party arrangement before deciding.

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