Setting an Indicative Budget (Transition to Adult Care and Support)

An indicative budget estimates the amount of money it may take to meet a young person's/young carer's eligible needs (from the age of 18) or a parent carer's eligible needs (from the time that the cared for person is 18).

The indicative budget is not the same as the personal budget, which is a final budget agreed following any adult care and support/support planning process.

To support the transition process, it is quite appropriate to provide an indicative budget to the young person/young carer/parent carer before the point of transition, and this can be several months or years beforehand depending on the time required to effectively plan their future support.

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 change during any stage of the planning process.

An indicative budget can support the young person/young carer/parent carer (and anyone supporting them with Transition 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.

Knowing how much financial resource is available manages expectations and reduces the risk of dissatisfaction when the final personal budget is agreed in the future.

Indicative budgets should be set in line with local processes and requirements.

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

See: The Personal Budget 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 Ready Reckoner Approach is being used in Lincolnshire to give an indication of the amount of money that may be required to meet eligible support needs. 

The Lincolnshire Ready Reckoner was developed through extensive consultation with a range of stakeholders, including people receiving services. 

The Ready Reckoner is an optional element included in the Transition Needs Assessment and should be used whenever an assessment or review needs to generate a new or revised indicative planning budget. 

The Lincolnshire Resource Allocation Guidance (which reflects the Ready Reckoner Approach to calculating indicative planning budgets) is also available in the Local Resource Library under Assessments.

Where it is decided that having an indicative budget during Transition Planning is appropriate, it must be shared with the following people as soon as it is known and before any care and support/support element of the planning process begins:

1. The young person/young carer/parent carer whose needs are to be met;
2. The parents of a young person/young carer;
3. Any advocate involved; and
4. Anyone else involved in the transition planning process.

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

The indicative budget is only an estimation of the amount it may cost to meet the eligible needs in the future and the final personal budget, that is agreed after adult 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 transition planning.

Sometimes a young person/young carer/parent carer may feel that the indicative personal budget they have been given is not sufficient to meet their needs at the point of transition.

In this situation 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. assure the young person/young carer/parent carer that, where there is evidence (following the adult care and support/support planning process) that the indicative budget is not sufficient, this will be reflected in any final personal budget that is agreed.