Personal budgets and direct payments in EHC plans

Personal budgets and direct payments can give families more control over how certain support in an EHC plan is arranged. This guide explains what they are, when they can be requested, and why they matter.

This guide is useful if…

• You already have an EHC plan and want to understand personal budgets better
• You have heard about direct payments but are unsure how they work
• You want to know when these can be requested
• You want a clearer sense of how flexibility can fit within an EHC plan
• what provision is actually needed
• whether that provision is clearly specified in the EHC plan or draft plan
• how the proposed arrangement would support access to education
• what level of flexibility the family actually wants to manage

Why personal budgets and direct payments matter

The original article explains that an Education, Health and Care Plan can do more than simply record need. It can also open up opportunities for greater flexibility through personal budgets and direct payments, giving families more say in how some support is arranged. The original piece specifically frames these as tools that can help families secure more tailored provision through an existing EHC plan. fileciteturn12file4

For many families, this part of the system is much less familiar than the assessment or annual review process. Yet it can become highly relevant once a plan is in place and the question becomes not only what support is needed, but how that support can be secured in a practical and flexible way.

What is a personal budget?

The original article defines a personal budget as an amount of money allocated by the local authority to meet the special educational provision specified in an EHC plan. It explains that this is distinct from general educational funding and is intended to reflect the child or young person’s individual needs. fileciteturn12file5

The same article also notes that a personal budget is not always paid as cash. In some cases it may be a notional budget, where services are arranged directly by the local authority or school rather than managed by the family. 

NavigateSEND view

Families often hear the phrase “personal budget” without a clear explanation of what form it can take. In practice, one of the most useful starting points is understanding that a personal budget is about the arrangement of provision, not simply about receiving money directly.

What are direct payments?

The original article explains that direct payments are one way of accessing a personal budget. In this model, the budget is received as a cash payment so that parents or young people can directly purchase and manage the services described in the EHC plan.

The same original piece says that direct payments can be used for things such as special educational provision, equipment or therapies specified in the EHC plan, and support services that improve access to education. It also says they cannot be used to fund a school placement itself. 

When can personal budgets or direct payments be requested?

The original article says families can approach the local authority at two key points: during the drafting of an EHC plan, or during the review or reassessment of an existing EHC plan. 

This is helpful because it shows that these options are not only relevant at the very start of the process. They may also become important later, once a family can see more clearly what type of support is needed and how provision might be organised more effectively.

Why families are interested in them

The original article frames personal budgets and direct payments as tools that can offer greater flexibility and autonomy, helping families feel they have more control over how provision is secured. 

That is often the core reason interest grows: families are not only trying to understand entitlement, but trying to work out how support can actually be shaped in a way that is workable, timely and fitted to the child or young person’s needs.

What to think about before requesting them

Before moving forward, it usually helps to be clear about four things:

Although the original article is practical and positive in tone, cases still vary. In real-world situations, clarity of wording, quality of evidence, and the stage of the case all influence how useful a request for personal budgets or direct payments is likely to be.

Related NavigateSEND services

This resource connects most directly with:

Requests to Local Authorities for Provision → EHCP Amendments → Ongoing SEND Strategic Advisory →

What families and professionals often need most

In practice, the hardest part is often not understanding the phrase “personal budget” itself. It is working out whether this is the right route in the case, how the provision should be framed, and what kind of request to the local authority will make the most sense.

Need help with personal budgets, direct payments or a local authority provision request?

If you are trying to work out how flexible provision can fit within an EHC plan, NavigateSEND can help clarify the options and identify the strongest next step.