Setting an Indicative Budget (Adult Procedures (Life Planning))

1. Understanding what an Indicative Budget is

An indicative budget is a figurative amount calculated immediately following the assessment. It estimates the amount of money it may take to meet a person's eligible needs and is based on information gathered during any assessment process.

2. Why an Indicative Budget is Important

An indicative budget is important because it supports the person (and anyone supporting them with Care and Support planning) to;

1. Understand the amount of financial resource that may be available to them (and also what is not available);
2. Explore options to meet needs that are within the available financial resource.

3. When an Indicative Budget Should be Set

An indicative budget should be set;

1. After a person's needs have been established and agreed; but
2. Before any Care and Support planning process begins.

You should never begin the Care and Support planning process without knowing the indicative budget.

Indicative budgets before the age of 18

To support the transition process it is quite appropriate to provide an indicative budget to the young adult before they are 18, and this can be several months or years beforehand depending on the time required to effectively plan their support in adulthood.

In this instance you should explain that;

1. The final personal budget cannot be agreed until they are ready to transition to adult Care and Support; and
2. The indicative budget is subject to change if their likely needs from the age of 18 change during any stage of the planning process.

4. The Process of Setting an Indicative Budget

The process of setting an indicative budget should be timely, transparent and ensure a sufficient amount to meet the identified eligible needs.

Click here to read what the Care Act says about setting indicative and personal budgets, including more about what is meant by the terms timely, transparent and sufficient.

The Local Authority uses a Resource Allocation System (RAS) to set indicative personal budgets following assessment.

5. Sharing the Indicative Budget

The indicative budget must be shared with the following people as soon as it is known and before any Care and Support planning process begins;

1. The person whose needs are to be met;
2. Any advocate involved; and
3. If the person is not yet 18 or has an EHC Plan, their parents; and
4. Anyone else involved in the Care and Support planning process.

You should also make available any information to explain how the indicative budget amount was reached.

The Local Authority general letter template should be used when communicating this in writing. Click here to access it.

If it is available the outcome of any financial assessment process being carried out should also be made available at this stage. Understanding the implications for their personal finances can influence the options that a person chooses to explore during Care and Support planning.

6. What to do if the Indicative Budget is not Sufficient

The indicative budget is only an estimation of the amount it may cost to meet the person's eligible needs and the final personal budget that is agreed after the Care and Support planning may be slightly higher or lower than this amount.

However, despite being estimated, the indicative budget should still be sufficient to support effective Care and Support planning and meet the eligible needs that have been identified.

If you do not feel it is sufficient

If you are of the view that the indicative budget is not sufficient to support effective Care and Support planning you should;

1. Review the formal record of the person's needs to ensure that you have not made any recording errors; and
2. Review the process that you followed to set the indicative budget to ensure that you followed all the required steps.

If you continue to have concerns about the sufficiency of the indicative budget you should speak to your line manager to agree further action required and next steps.

Whenever decisions about indicative and personal budgets are being reviewed regard should be given to the statutory requirements for setting budgets under the Care Act, which can be accessed by clicking here.

If the person (or their representative) does not feel it is sufficient

Sometimes a person (or their representative) may feel that the indicative personal budget they have been given is not sufficient to meet their needs. If you are in agreement with this you should follow the steps outlined above.

However, if you feel that the budget is sufficient to commence Care and Support planning you should;

1. Explain that the indicative budget is an estimation based upon the eligible needs agreed during the assessment process;
2. Provide information about the process used to set indicative budgets;
3. Encourage the person to proceed with the Care and Support planning process and explore the full range of options to meet needs that are available (which will include alternatives to Local Authority provision); and
4. Assure the person that where there is evidence (following the Care and Support planning process) that the indicative budget is not sufficient this will be reflected in any final personal budget that is agreed.

Despite reassurances the person may continue to be dissatisfied with the indicative personal budget amount and in this case you must make them aware of their right to complain.