The following are key definitions:
Education, health and care plans
The purpose of an EHC plan is to make special educational provision to meet the special educational needs of the child or young person, to secure the best possible outcomes for them across education, health and social care and, as they get older, prepare them for adulthood.
A personal budget is an amount of money identified by the local authority to deliver provision set out in an EHC plan where the parent or young person is involved in securing that provision.
Personal budgets should reflect the holistic nature of an EHC plan and can include funding for special education, health and social care provision. They should be focused to secure the provision agreed in the EHC plan and should be designed to secure the outcomes specified in the EHC plan. 
Direct payments are cash payments made directly to the child’s parent, the young person or their nominee, allowing them to arrange provision themselves, as set out in the EHC plan. Direct payments are one of the ways in which personal budgets may be used; please see paragraph 6 for details of others ways in which personal budgets may be used.
Personal health budgets
A personal health budget is an amount of money to support the identified healthcare and wellbeing needs of an individual, which is planned and agreed between the individual, or their representative, and the local clinical commissioning group (CCG). It isn’t new money, but a different way of spending health funding to meet the needs of an individual
 SEND Code of Practice January 2015 page 142, para 9.2
 SEND Code of Practice January 2015 page 178, para 9.95
 SEND Code of Practice January 2015 page 178, para 9.99