Personal Budget
A personal budget is the amount of money a local council allocates to meet an adult's eligible care and support needs after a care needs assessment and financial assessment. It can be taken as a direct payment (managed by the person themselves), a council-managed budget, or a combination. Personal budgets are intended to give people choice and control over how their care is arranged.
Personal budgets are underpinned by the Care Act 2014. The council must tell the person the amount of their personal budget before finalising their care and support plan. If taken as a direct payment, the person can employ their own care workers, purchase services from providers of their choice, or pay for other agreed support — though close family members living in the same household generally cannot be employed directly without council agreement. The budget must be sufficient to meet assessed eligible needs; if a person chooses a more expensive option, they can top up from their own funds. Personal budgets are also available for carers who have support needs following a carer's assessment. Annual reviews can result in the budget being adjusted if needs have changed. In education, a similar concept applies via Education, Health and Care (EHC) plans.