A Guide on Personal Budgets and Direct Payments for Special Educational Needs (SEN) – England

A Guide on Personal Budgets and Direct Payments for Special Educational Needs (SEN) – England

Personal budgets
A personal budget is the amount of money that your local authority (the council) estimates is needed to pay for the extra help written into a child’s or young person’s Education, Health and Care Plan (EHCP – a legal document that explains a child or young person’s needs and the support they must receive). The budget can draw money from education, health and social-care services, and it must be large enough to cover the agreed support.

Personal budgets are flexible. Families can choose four main ways to manage them:

1. Notional (arrangement) – the council, school or college keeps the money and arranges the support.
2. Direct payment – the family or young person receives the cash and buys the support themselves.
3. Third-party arrangement – an independent person or organisation holds the money and organises the support on the family’s behalf.
4. A mix – combining any of the above.

Direct payments
A direct payment is one possible route for using a personal budget. It is the actual transfer of money from the council (or the NHS for health support) into a bank account so that the parent, carer or, from age 16, the young person can choose, arrange and pay for the agreed help. The recipient must show that the money is spent only on the support that has been approved.

How they are alike

• Both give families choice and control over extra support.
• Both are linked to the needs set out in an EHCP (or a care plan for social-care support).
• Both are overseen by the council, which must be satisfied that the money will be used properly.

How they differ

• Personal budget is the total pot of money and can stay entirely under the council’s control if you wish.
• Direct payment is a method of taking some or all of that pot as cash so you (or a trusted third party) handle the spending. In other words, every direct payment sits inside a personal budget, but a personal budget can exist without a direct payment.

Does it cover children and young people?
Yes. In England, any parent or young person who has (or is being assessed for) an EHCP can ask for a personal budget, including the direct-payment option. Disabled children without an EHCP can still request direct payments for social-care support after a Children Act needs assessment.

Applying for a personal budget

1. During an EHCP needs assessment or annual review, tell your SEN case officer that you want a personal budget.
2. The council will give you an indicative figure and ask how you would like the money managed.
3. You will need to show how the budget will meet the needs in the EHCP.
4. The final amount and management method are recorded in Section J of the plan.
5. If the council refuses, it must explain why and you can use its complaints process or, for disputes about the provision itself, appeal to the SEND Tribunal after first considering or partaking in mediation.

Applying for direct payments

• Tick the “direct payment” option when you request your personal budget or ask at any later review or the EHCp.
• Provide a spending proposal (for example, employing a speech-and-language therapist, buying assistive software, hiring a personal assistant).
• Open a separate bank account if the council asks for one, sign the direct-payment agreement and keep receipts.
• The council may refuse if the plan would harm services for others or is not an efficient use of public money, but it must explain its reasons in writing and offer a review of the decision

When are they useful?

• Specialist therapy – paying directly for additional speech-and-language or occupational-therapy sessions.
• One-to-one support – employing a teaching assistant or key worker during school hours or for community activities.
• Short breaks and respite – funding after-school clubs, holiday schemes or overnight respite to give families a break.
• Equipment and software – purchasing communication aids, laptops or sensory tools more quickly than waiting for central procurement.
• Travel – arranging suitable transport when standard school transport is unsuitable.

Direct payments are especially helpful when local services are hard to reach, when a family wants to choose a specific provider, or when flexibility (for example evening or weekend support) is essential.

Helpful resources

• SEND Code of Practice 0–25 years (Department for Education): https://www.gov.uk/government/publications/send-code-of-practice-0-to-25
• IPSEA guide to personal budgets and direct payments: https://www.ipsea.org.uk/personal-budgets-and-direct-payments
• Child Law Advice – Direct payments: https://childlawadvice.org.uk/information-pages/direct-payments/
• Council for Disabled Children factsheet on personal budgets: https://councilfordisabledchildren.org.uk/resources
• Contact (charity) – Managing a personal budget: https://contact.org.uk/help-for-families/information-advice-services/benefits-financial-help/personal-budgets/
• Local Offer – search “[your council] local offer personal budgets” for local policies and application forms.

This information is provided for informational purposes only and is intended to provide an accessible overview. Anyone intending to rely on this information is strongly advised to read the resources and preferably also seek appropriate legal advice or assistance.

AKO

27 May 2025.