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Personal Budgets & Direct Payments

What is a Personal Budget & a Direct Payment?

A personal budget is the overall cost of the care and support the local authority provides or arranges for you. It specifies how much, if any, you must pay towards the overall cost and the remaining amount paid by the authority.

Direct payments are a funding choice in personal budgets.

Personal Budgets & Direct Payments

Personal Budget:
A Personal Budget (PB) is money you can use to pay for support services like carers or specialist equipment. It gives you the freedom to choose the services best suited to your child’s needs. The amount you get is set out in an Education, Health & Care Plan.

You can receive your PB either by:

  • Direct Payments - where the money is paid directly into your bank account. You will need to provide receipts to the Local Authority to prove how you are spending the payments.
  • Arrangement - where the Local Authority hold the money and arrange the for services listed in the Plan to be provided. This takes all the burden away from you.
  • Third-Party Arrangement - Where a Third-Party looks after the money and arranges for the services listed in the Plan to be provided. Receipts will need to be provided to the Local Authority.

In order to apply for a PB, you will first need to undergo an EHC Needs Assessment and have a Final EHCP issued.


Direct Payments:
When a PB is agreed, you can request to receive the budget in the form of a Direct Payment (DP). In order to receive a DP, you will first need to be assessed. This assessment is a meeting between yourself and a care professional to agree on a package of support which can help maintain your independence.

For Children/Young People Aged 0 - 18, you will need to speak to your SEN Case Officer.
For Young People Aged 18 - 25, you will need to be assessed by a Social Worker. You can contact the Social Work team by telephone at 0208 583 3100.

When your DP is agreed, you will receive a payment card. This can be used in the same way as any debit or credit card and can be used to pay for any services agreed in the Plan.

Direct Payments do not affect your entitlement to any Benefits.


Contact the Teams:
You can contact the Direct Payments Team at the following: 

You can contact the Financial Assessments Team at the following: