Personal Budget

A personal budget is used to help children and young people with an Education Health and Care Plan (EHCP). It is money given by Newcastle City Council. This money can be spent on special education, social, and health care services.  

The amount given will be written into an EHCP.  

Close up photo of 5 pound, 10 pound and 20 pound notes.

How do I apply for a personal budget?  

Parents, carers, or a young person aged 16 to 25 can ask for a personal budget. This can be done when:

  • an EHCP is being written  
  • an EHCP is being reviewed.  

Speak with your child’s caseworker to request a personal budget.  

What can a Personal Budget be spent on? 

A personal budget can be spent on:

  • employing a personal assistant (PA) who can:
    • accompany them to access an activity or service
    • work within the home to give parents and siblings a break
    • stay overnight to give parents a break
  • a registered childminder (for children aged under 8)
  • purchasing care and support services from an approved agency
  • after school clubs or holiday play schemes
  • residential overnight breaks
  • buying specialist equipment not provided by the NHS
  • special educational provision mentioned in an EHCP
  • transport costs
  • occasional short breaks when agreed by the Local Authority

A personal budget must not be spent on:

  • services from a spouse
  • services from a partner or close relative living in the household
  • employing someone without a Disclosure and Barring Service (DBS)
  • employing someone subject to a drug or alcohol treatment requirement, youth rehabilitation order or released on licence
  • permanent residential accommodation  

Who receives and manages the personal budget?  

There are three different options for managing a personal budget: 

How the Personal Budget can be managed Who will receive and manage the money
  1. Direct Payment paid into bank account 
  • Young person (16-25)
  • Parents
  • Nominated person 
  1. Arrangement  
  • Newcastle City Council
  • School
  • College  
  1. Third-party arrangement  
  • Organisation
  • Person  

A direct payment can give more choice, flexibility, and control. You can employ workers at times convenient to you. Or you can choose services that you consider meet your child’s needs.  

However, for a direct payment to be given we must be satisfied that:

  • the young person, parents or nominated person can manage the direct payment themselves
  • the young person, parents or nominated person will use the money appropriately
  • It is the best way to arrange support or services

We will let you know if we decide not to make a direct payment. We will let you know the reason for our decision. You can request us to review the decision.  

Are direct payments monitored? 

We will monitor and review how direct payments are used: 

  • at least once within the first 3 months
  • When we review an EHCP
  • When we reassess an EHCP   

How often are direct payments made?  

A personal budget can be a one-off payment or given every 4 weeks. The money will be sent into a bank account set up for a personal budget.  

Payments can be made at different times if needed. For example, this could be during school holidays. 

What types of Personal Budgets are there?  

This page tells you about personal budgets for education. This is for children with an Educational Health and Care Plan (EHCP).  

However, there are other personal budgets that you or your child might be eligible for:

Does a personal budget affect welfare benefits? 

A personal budget is not classed as income. Therefore, it will not affect any welfare benefits you may receive.  

Information from https://childrenandfamiliesnewcastle.org.uk/
Printed on July 3rd 2026
Page last updated
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