Guidance for parents, carers and young people, for children and young people with an Education, Health and Care Plan
Purpose: This policy explains what a Personal Budget is, how it may be managed, how to request one, how Torbay Council will make decisions, and the responsibilities attached to direct payments.
A Personal Budget is an amount of money identified by Torbay Council to secure particular provision set out in an Education, Health and Care Plan (EHCP). It gives the parent or young person an opportunity to be involved in deciding how that provision is arranged. It is not a separate entitlement to additional provision and does not replace the provision specified in the EHCP.
A Personal Budget may include funding for education, health and social care provision. The availability and management of each element is governed by the law and decision-making arrangements that apply to the service responsible for that provision. In this policy, the term “Personal Budget” is used as an umbrella term for all four ways in which an agreed budget may be managed.
National arrangement
Direct payment
Third-party arrangement
Combination arrangement
Important distinction: A Personal Budget identifies funding available for agreed provision. A direct payment is one way of receiving and managing some or all of that budget.
For education, a Personal Budget must be linked clearly to special educational provision specified, or proposed to be specified, in Section F of the EHCP and to the outcomes in the plan. It must be an appropriate, safe and effective way of securing that provision.
Under section 49 of the Children and Families Act 2014 and the Special Educational Needs (Personal Budgets) Regulations 2014, a child’s parent or a young person may request a Personal Budget, including a request for direct payments, while a draft EHCP is being prepared or when an EHCP is being reviewed or re-assessed. Torbay Council must consider a request for direct payments.
Where Torbay Council maintains an EHCP, section 42 of the Children and Families Act 2014 requires the Council to secure the special educational provision specified in Section F. A Personal Budget is a means of arranging agreed provision. It does not, by itself, transfer or remove the Council’s statutory responsibility.
If a Personal Budget or direct payment is not agreed, is declined, or is later amended, suspended or stopped, Torbay Council will consider what arrangements are required to continue securing the special educational provision in Section F, unless the EHCP is amended or ceased through the statutory process.
Section 42 safeguard: A change to the way funding is managed should not create an avoidable gap in the special educational provision specified in the EHCP.
The Council must be satisfied, on the available evidence, that a proposed direct payment is an appropriate way to secure the agreed provision and that the legal conditions for making a direct payment are met. The Council may therefore request proportionate information about safeguarding, qualifications, insurance, quality assurance, financial management and delivery arrangements.
A request may be made while a draft EHCP is being prepared or when an EHCP is being reviewed or re-assessed. A request made at another point will be considered where it is appropriate to bring forward an EHCP review or re-assessment.
The Personal Budget must be connected to provision specified, or proposed to be specified, in the EHCP. For the education element, this means special educational provision in Section F. Examples may include:
A Personal Budget does not create an entitlement to receive all funding associated with a child or young person’s support as a cash payment. Some funding may be retained and managed notionally where provision is commissioned collectively or where an individual amount cannot reasonably be separated.
A direct payment cannot be used to fund a place at a school or post-16 institution. In addition, a direct payment cannot be made for goods or services that are already being provided through a school or post-16 institution unless the institution’s written agreement has been obtained.
Where a Personal Budget is requested, Torbay Council will identify the provision for which a budget may be available. Funding may be excluded where the amount attributable to the child or young person cannot be disaggregated from funding used to provide services for a wider group, without adversely affecting those services or the efficient use of resources.
A direct payment will not be agreed where the statutory conditions are not met. This may include circumstances where:
Support with a request: Families and young people may ask for advice and support from SENDIASS.
Each request will be considered on its individual circumstances. Torbay Council will consider:
Agreed - The Council issues written confirmation and a direct payment agreement, where applicable. This will identify the agreed provision, amount, payment schedule, permitted expenditure, records required, monitoring arrangements and review date. Provision and payments begin only after the agreement is completed and any required checks are satisfied.
Further information needed - The Council explains what information is missing and why it is required. The request remains under consideration while relevant information is gathered.
Partly agreed - The Council explains which elements are agreed and which are not, with reasons. It also explains how any provision not managed through the Personal Budget will be secured.
Not agreed - The Council gives its decision and reasons in writing and explains how the provision in the EHCP will be secured. The letter will identify available review, complaint and impartial advice routes.
Before a direct payment is made, the recipient or nominee must agree to the conditions attached to it. The agreement will be proportionate to the arrangement and consistent with the Special Educational Needs (Personal Budgets) Regulations 2014.
Torbay Council will take a supportive and proportionate approach. A concern will not automatically end a Personal Budget or direct payment. The first response will normally be to understand the issue and agree reasonable improvement action, unless an urgent safeguarding, legal or financial concern requires immediate action.
The Council may review direct payments whenever it considers this necessary and will review them at the intervals required by the Regulations. Following review, the Council may continue, increase, reduce, suspend or cease a direct payment, subject to the applicable legal requirements and written notice.
If the Council proposes to reduce, suspend or cease a direct payment, it will explain the reasons and consider representations from the recipient. Where advance notice would be inappropriate because of an urgent safeguarding concern or suspected misuse of public funds, the Council may act immediately where permitted by law and will provide written reasons.
Any change to a direct payment will be considered separately from any decision to amend or cease the EHCP. Torbay Council will continue to consider how the special educational provision in Section F is to be secured.
Where a Personal Budget is used alongside attendance at a school or college, the education setting will normally coordinate the annual review in accordance with the statutory process. Torbay Council remains responsible for maintaining the EHCP and for decisions following the annual review.
A direct payment for provision that will be delivered on the premises of a school or post-16 institution, or that replaces provision the institution is already arranging, requires the institution’s written agreement. Day-to-day responsibilities will be recorded clearly so that the family, provider, setting and Council understand their respective roles.
Where section 61 of the Children and Families Act 2014 applies and special educational provision is arranged otherwise than in a school or post-16 institution, a Personal Budget may be considered for an agreed element of the EOTAS package. The EHCP should specify the provision to be secured and the arrangements must form a coherent educational package.
For a child or young person who is not on roll and whose education is provided through an EOTAS package, Torbay Council will identify the lead arrangements for oversight and EHCP review. Monitoring will be proportionate and may include delivery, engagement, progress, safeguarding, provider quality and use of funds.
Transport is considered separately under the applicable home-to-school or post-16 transport policy and legislation. Agreement to a Personal Budget or direct payment neither automatically creates nor removes an entitlement to transport assistance.
If a request is not agreed, is only partly agreed, or a direct payment is changed or stopped, Torbay Council will provide the decision and reasons in writing. The communication will explain how to ask for the decision to be reviewed and how to provide further information or make representations.
Families and young people may also use the Council’s complaints procedure and seek impartial advice from SENDIASS. Rights of appeal to the First-tier Tribunal relate to specified decisions about the EHCP. The decision letter will explain any relevant statutory rights and sources of advice.