A personal health budget (or self-directed support as it is known in Scotland) is an agreed amount of money that is provided by your local council (and/or other funding streams, such as the CCG). A care needs assessment and financial assessment are arranged to evaluate your entitlement and what care and support you need. Your personal health budget will be calculated on the basis of how much it would cost to arrange care and support in your area to enable you to live at home.

Once a personal health budget has been assigned to you, you can choose how you want to receive it. You can ask your local council to manage your Personal Health Budget for you, pay the money to another local organisation (such as a care provider or a charity), or you can have the amount paid to you as a direct payment that you can manage yourself or have managed by someone close to you.

If you choose direct payments, your local authority will pay the money you are entitled to into a bank account which is specifically set up to receive these payments (it will not be paid into your personal account), and this is known as a managed bank account. The money can only be used for your needs as set out in your agreed care plan, such as for employing your own care workers for either home care or social care (which you can do through UKCIL), buying equipment for your home, or for paying for home adaptations. There are plenty of ways to spend your personal health budget to enjoy independent living, but the budget cannot be used to pay for food and bills.