Adult Social Care Glossary, v 0.6

26 Personal budget
(1) A personal budget for an adult is a statement which specifies—
(a) the cost to the local authority of meeting those of the adult's needs which it is required or decides to meet as mentioned in section 24(1),
(b) the amount which, on the basis of the financial assessment, the adult must pay towards that cost, and
(c) if on that basis the local authority must itself pay towards that cost, the amount which it must pay.

(2) In the case of an adult with needs for care and support which the local authority is required to meet under section 18, the personal budget must also specify—
(a) the cost to the local authority of meeting the adult's needs under that section, and
(b) where that cost includes daily living costs—
(i) the amount attributable to those daily living costs, and
(ii) the balance of the cost referred to in paragraph (a).

(3) A personal budget for an adult may also specify other amounts of public money that are available in the adult's case including, for example, amounts available for spending on matters relating to housing, health care or welfare.

(4) Regulations may make provision for excluding costs to a local authority from a personal budget if the costs are incurred in meeting needs for which the authority—
(a) does not make a charge, or
(b) is not permitted to make a charge.