Family Information Service

Personal budget policy for children and young people aged 0 to 25 with special educational needs and their families

Last updated: 31 October 2022

Managing and using a personal budget

We will make available four mechanisms for the delivery of the personal budget.

The choice between these rests with the parents or young person.

  • Direct payments – where the parents or young person receive the cash to contract, purchase and manage services themselves.
  • Third party arrangements – where the funds are paid to and managed by an individual or organisation on behalf of the child’s parent or the young person.
  • A notional arrangement – whereby the Council, a school or college holds the funds and commissions the support specified in the plan.
  • A combination of the above.

We will provide unbiased information about organisations that may be able to provide advice and assistance to help parents and young people to make informed decisions about personal budgets.

Personal Budgets from educational settings

We will work with settings to simplify the administration of personal budgets in education for both the recipient and for the setting.

If requested by the setting we will undertake the monitoring of direct payments or third party arrangements on behalf of the setting.

Where the funding for all or part of a direct payment or third party arrangement is to be provided from funds previously delegated to a setting we will agree to accept the funds back from the setting so that we can enter into the agreement to provide the direct payments or third party arrangement.

Such payment arrangements will be reviewed following every EHCP review and could be terminated at any time by either party.

Where the funding for a direct payment or third party arrangement is to be provided both from funds previously delegated to a setting and funds not yet delegated (for example, top-up funding) we will discuss with the setting concerned on a case-by-case basis.

In certain cases, this will involve us delegating the funds to the setting and the setting entering into the agreement to provide the direct payments or third party arrangement.

Personal budgets – post 16

Once a young person turns 16, we will take reasonable steps to ascertain whether the young person consents to a personal budget being made on their behalf.

Where the young person has notified us in writing that he or she wishes to receive a personal budget, we will agree unless doing so would be incompatible with any policy in this document.

Where the young person requests in writing that the Council continues to make payments to the young person’s parent or nominee, we will do so.

Where the young person notifies us in writing that they do not consent to the making of payments, we will stop payments.

Where we have taken reasonable steps to ascertain whether the young person consents to payments and the young person has not notified us that he or she consents to receive payments, then we will stop direct payments.