What is a Personal Budget in Social Care?

A personal budget is the amount of money a local council allocates to meet a person's assessed eligible care and support needs. If your loved one has been assessed as needing support and qualifies for council funding, the council must tell them how much their personal budget is — and give them choices about how it is used.

How is it calculated?

The amount is based on a care needs assessment followed by a financial assessment. The council determines the cost of meeting your loved one's eligible needs in their local area, then takes into account their financial contribution based on the means test. The personal budget is the net figure the council agrees to contribute.

How can it be used?

There are three main options. The council can arrange and manage the care on your loved one's behalf. A third-party organisation can manage the budget and arrange care. Or the money can be paid directly to your loved one or a family member as a direct payment, allowing them to arrange and purchase their own care. Most people opt for council-managed care or a combination, but direct payments give the most flexibility and control.

What it cannot be used for

A personal budget cannot be used for day-to-day costs such as food, utility bills or clothing. It must be spent in line with an agreed care plan. The council will review spending periodically.

Understanding how personal budgets work — and how to ensure the allocation genuinely reflects your loved one's needs — is part of what we cover in our consultation. Book a consultation →