The financial challenges of implementing personal health budgets can be minimised if providers and commissioners work together, according to a briefing paper published ahead of their expansion, which will begin next month (April 2015).

Getting the sums right – How to sustainably finance personal health budgets has been published by the NHS Confederation in partnership with Think Local Act Personal, a national partnership promoting person-centred care.

The 11-page document includes case studies from organisations that have already introduced personal health budgets and sets out how others can address financial risks when implementing them. Personal health budgets can be either a direct payment to the person, a notional budget or a real budget held by a third party.

The NHS Confederation’s briefing paper covers identifying and allocating funds for personal health budgets from existing budgets and managing the risk of paying to run two services at the same time. It includes recommendations for care purchasers such as clinical commissioning groups (CCGs) and service providers such as mental health and community service organisations.

The paper highlights that a gradual roll out of personal health budgets can allow time for commissioners to develop and improve approaches to budget setting and adapt to the financial changes involved if, for example, budget holders stop using some existing services. It also warns that clinicians such as nurses and mental health workers should be supported to enable patients to be in control of decisions about their care, in order for personal budgets to improve patient experience.

Think Local Act Personal director Dr Sam Bennett said: “The pressures on the system demand we think differently and embrace the transformations necessary to drive forward a new model of care and a truly person-centred NHS. This means people with health and care needs leading the change, with support, through using personal budgets.

“Sustainably financing personal health budgets is a complex task, but evidence suggests there will be clear benefits for people with long term conditions. It’s a challenge we should embrace and there is already a wealth of learning we can build on to do this.”