While Direct Payments come from the council, **Personal Health Budgets (PHBs)** come from the NHS. It is money to support your health and wellbeing needs, planned and agreed between you and your local Integrated Care Board (ICB).
1. The Right to Have a PHB
In 2026, several groups of people have a **legal right** to have a Personal Health Budget:
- Continuing Healthcare (CHC): Adults receiving NHS Continuing Healthcare (care provided outside of hospital for someone with a complex health need).
- Children's Continuing Care: Children and young people receiving NHS continuing care.
- Mental Health: People eligible for Section 117 after-care (after being "sectioned").
- Wheelchair Users: People who are eligible for a personal wheelchair budget.
🚀 The Hustler's Strategy: The 'Non-Traditional' Therapy
Want a treatment that isn't usually on the NHS?
Keyword Strategy: The beauty of a PHB is its flexibility. You can use it for Alternative Therapies or equipment that isn't usually provided by your GP. Strategic Move: You can include items in your PHB like specialized gym memberships for physiotherapy, equine therapy for mental health, or even high-tech communication aids. As long as you can prove the item meets a specific "Health Goal" in your personalized care plan, the ICB can approve the funding.
2. Three Ways to Manage a PHB
- Direct Payment: You receive the cash into a dedicated bank account and buy the services yourself.
- Third-Party Arrangement: An organization (like a charity or private company) holds the money and organizes the care for you.
- Notional Budget: The NHS keeps the money but you choose which services they buy on your behalf.
3. PHB vs. Social Care Direct Payments
Technical Rule: The most significant difference is that NHS Personal Health Budgets are NOT means-tested. Unlike social care from the council, PHBs are free at the point of use regardless of your income or savings. This makes them significantly more valuable for households with moderate savings who would otherwise have to pay for their own care.
PHB FAQs
Can I pay for my GP with a PHB?
No. PHBs cannot be used for emergency services, surgery, or your regular GP visits. They are for the management of long-term conditions and disabilities.
Is the money taxed?
No. Like social care payments, a PHB is not treated as income for Tax or Universal Credit/PIP purposes. It is purely for your healthcare needs.
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Benefit Experts Editorial Team
Benefit Experts Team – Independent UK benefits guidance. We provide independent, authoritative guidance to help UK citizens navigate the complex benefits system with confidence.