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Personal Budgets for Special Educational Needs

What is the difference between a Personal Budget and a Direct Payment?

A Personal Budget shows you what money there is for the provision specified in an EHC plan, and who provides it. The parent or young person does not actually manage the funds directly.

With a Direct Payment the parent or young person is given the money for some services and manages the funds themselves. The parent or young person is responsible for buying the service and paying for it.

A Personal Budget can include a Direct Payment if it is agreed that this is the best way to manage part of the Personal Budget.

Direct payments can be used for special educational provision in a school or college only if the school or college agree. Local authorities can refuse a direct payment for special educational provision if it would make things worse for other children and young people with an EHC plan, or if it would be an inefficient way to pay for services.

It is also possible to have a Third Party Arrangement to manage a Direct Payment.

 


 

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