🚨 Personal Budget System for People with Disabilities

Today Korean Social News for Beginners | 2025.11.24

0️⃣ Strengthening Self-Determination Rights and the Activity Support Time Shortage Controversy

📌 More Than Half of Pilot Program Participants Dropped Out… "Lack of Activity Support Time is the Biggest Problem"

💬 In the pilot program for the "Personal Budget System for People with Disabilities," which the government introduced to strengthen self-determination rights for people with disabilities, 113 out of 220 participants (51.4%) dropped out midway. The biggest reason for dropping out was lack of activity support time, with 56.1% (55 people) of those who left citing this reason. This system converts about 20% of existing activity support benefits into a personal budget so that people with disabilities can directly choose welfare services such as activity support, rehabilitation, and assistive devices according to their needs. However, the problem emerged that activity support time actually decreased because the system redistributes existing benefits without adding new budget. 16.3% also responded that there were not enough available services, and there were also criticisms that guardians' opinions were reflected more than the opinions of people with disabilities themselves during the planning process. Experts emphasize that expansion of care service workers and infrastructure must come first for the system to work as originally intended.

💡 Summary

• The Personal Budget System for People with Disabilities is a program that allocates personal budgets so people with disabilities can directly design and choose welfare services.
• More than half of pilot program participants dropped out due to lack of activity support time.
• It is difficult to exercise real choice due to shortage of care workers and lack of available services.

1️⃣ Definition

The Personal Budget System for People with Disabilities means a system that allocates part of existing service benefits in the form of a 'personal budget' so that people with disabilities can directly design and choose various welfare services such as activity support, rehabilitation treatment, and purchase of assistive devices according to their needs and wants. The official name is "Personal Budget System for People with Disabilities," and it is based on Article 33 of the Act on Welfare of Persons with Disabilities and its enforcement decree.

The core of this system is recognizing people with disabilities not just as welfare recipients but as the main designers of services. Previously, they received support uniformly according to service items and methods decided by the government, but with the personal budget system, people with disabilities can combine and choose services they need themselves. For example, they can convert part of their activity support time to use for rehabilitation treatment or purchase of assistive devices.

💡 Why Is This Important?

• It means a transformation in the welfare paradigm that respects self-determination and choice of people with disabilities.
• It enables customized welfare services tailored to individual diverse needs and living environments.
• It promotes social awareness change that recognizes people with disabilities as active subjects rather than passive recipients.
• Successful establishment of the system can lead to substantial improvement in quality of life for people with disabilities.

2️⃣ Current Status and Problems of the Personal Budget System for People with Disabilities

📕 High Dropout Rate in the Pilot Program

• More than half of participants gave up on the system. The main status is as follows:

  • The pilot program started in April 2024 with a total of 220 participants.
  • Of these, 113 people (51.4%) dropped out midway through the program.
  • Among those who dropped out, 56.1% (55 people) cited lack of activity support time as the main reason.
  • 16.3% also responded that there were not enough available services.

• Structural problems in the system design were revealed. The main problems are as follows:

  • The personal budget system converts about 20% of existing activity support benefits without adding new budget.
  • It was designed to reduce activity support time and use part of it to purchase other services.
  • However, activity support time is already absolutely insufficient for most people with disabilities.
  • When basic daily life support is not sufficient, it is difficult to convert part of it to other services.

📕 Shortage Problem of Activity Support Benefits

• Current activity support time alone is insufficient. The main situation is as follows:

  • People with severe disabilities often need 24-hour care per day.
  • However, activity support benefits are limited to a maximum of 480 hours per month (about 16 hours per day).
  • In reality, most receive even fewer hours.
  • The remaining time must be covered by family care or the person with disabilities must stay alone.

• The personal budget system actually decreases activity support time. The main problems are as follows:

  • Converting 20% of existing activity support time to personal budget reduces actual activity support time.
  • For example, if someone receiving 200 hours per month converts 40 hours (20%) to personal budget, only 160 hours of activity support remain.
  • They must purchase other services with the amount equivalent to these 40 hours, but there are actually few available services.
  • As a result, situations occur where only activity support time decreases without receiving alternative services.

📕 Lack of Available Services and Infrastructure

• There is a shortage of services to choose from. The main problems are as follows:

  • Supply of rehabilitation treatment, psychological counseling, assistive devices, etc. that can be used with personal budget is not sufficient.
  • Especially in local or rural areas, there are almost no service providing organizations.
  • Even if services exist, accessibility is low due to long waiting times or high costs.
  • If there are no services to choose from even when given choice, the meaning of the system fades.

• Shortage of care workers is a fundamental obstacle. The main situation is as follows:

  • The number of activity assistants (care workers) is insufficient nationwide.
  • New workforce inflow is difficult due to low wages and poor working conditions.
  • Even existing activity assistants have high turnover rates, making stable service provision difficult.
  • When workforce is insufficient, it is difficult to expect substantial effects even if the personal budget system is introduced.

📕 Restrictions on Choice for People with Disabilities Themselves

• In the actual planning process, the opinions of people with disabilities themselves are not sufficiently reflected. The main problems are as follows:

  • When establishing personal budget usage plans, guardians' opinions are mainly reflected rather than the person with disabilities themselves.
  • For people with severe disabilities, families or guardians often make decisions instead because communication is difficult.
  • There is a shortage of specialized personnel to support planning, so it is sometimes conducted formally.
  • There is a gap between the system's purpose of strengthening self-determination and actual operation.

• The gap in understanding and utilization ability of the system is also a problem. The main challenges are as follows:

  • The personal budget system is complex and difficult for people with disabilities and their families to understand.
  • It is difficult to judge which services to combine and how for their benefit.
  • There is insufficient education to strengthen capabilities needed for planning and budget management.
  • People with disabilities with poor information accessibility have difficulty properly enjoying the benefits of the system.

💡 Major Issues of the Personal Budget System for People with Disabilities

1. Shortage of Activity Support Time: Decrease in essential activity support time due to conversion of 20% of existing benefits
2. Shortage of Service Supply: Insufficient services and infrastructure available with personal budget
3. Shortage of Care Workers: Difficult to provide even basic services due to shortage of activity assistants
4. Restrictions on Participant Involvement: Insufficient reflection of opinions of people with disabilities themselves in planning process
5. Absence of New Budget: Limitations in expanding substantial choice with existing budget redistribution method

3️⃣ Reasonable Improvement Directions for the Personal Budget System

✅ Parallel Implementation with Expansion of Activity Support Benefits

• Basic activity support time must be secured first. The main directions are as follows:

  • Budget expansion to increase activity support benefits themselves is needed along with introduction of the personal budget system.
  • New budget must be additionally invested rather than splitting existing benefits.
  • For people with severe disabilities, benefit limits should be raised to enable 24-hour daily care.
  • It is desirable to grant additional choice after activity support time is sufficiently secured.

• Step-by-step and flexible system design is needed. The main measures are as follows:

  • Rather than applying uniformly to all people with disabilities, it should be applied selectively only to those who wish.
  • A method of gradual expansion starting with people with disabilities who have sufficient activity support time should be considered.
  • The personal budget ratio should also be adjustable according to individual circumstances rather than fixed at 20%.
  • The right to choose should be guaranteed so that people can return to the existing method anytime if they feel inconvenience during use.

✅ Expansion of Service Infrastructure and Care Workers

• Available services must be diversified and expanded. The main tasks are as follows:

  • Various service providing organizations such as rehabilitation treatment, psychological counseling, and vocational training should be increased.
  • Public infrastructure should be expanded to resolve service gaps by region.
  • Measures to increase accessibility such as online services or visiting services should be prepared.
  • Support for purchasing assistive devices should be expanded and various usage methods such as rental services should be provided.

• Improvement of treatment and expansion of workforce for activity assistants is essential. The main measures are as follows:

  • Wages for activity assistants should be made realistic and working conditions improved.
  • Professionalism should be enhanced and pride increased through systematic education and training.
  • Public care workers directly employed by the state and local governments should be expanded.
  • Social awareness of activity assistants should be improved and stability as a profession should be increased.

✅ Strengthening Participant Involvement and Building Support Systems

• Substantial participation of people with disabilities themselves must be guaranteed. The main directions are as follows:

  • In the planning process, the opinions of people with disabilities themselves must be reflected as the top priority.
  • Communication support systems should be prepared for people with severe disabilities who have difficulty expressing themselves.
  • While opinions of guardians or families are also important, the self-determination rights of the person themselves should be respected.
  • People with disabilities themselves should be able to directly participate in the system design and evaluation process.

• A professional support system must be established. The main tasks are as follows:

  • Sufficient specialized counseling personnel (coordinators) to support personal budget planning should be deployed.
  • Education to increase understanding of the system should be provided for people with disabilities and their families.
  • Systematic support manuals to help with budget management and service selection should be developed.
  • Mentoring programs that share experiences of fellow people with disabilities should be operated.

4️⃣ Related Terms Explanation

🔎 Activity Support Benefits for People with Disabilities

• Activity support benefits for people with disabilities are core welfare services that help daily life of people with severe disabilities.
  • Activity support benefits for people with disabilities are services provided based on Article 55 of the Act on Welfare of Persons with Disabilities to support activities necessary for people with severe disabilities to perform daily life or social activities. Activity assistants visit the homes of people with disabilities to provide personal care, housework support, mobility support, communication support, etc.
  • Service contents include first, personal care support such as helping with bathing, changing clothes, eating, using the toilet, etc. Second, housework support such as supporting daily household activities like cleaning, laundry, and cooking. Third, mobility support such as accompanying and helping with movement when going out. Fourth, communication support such as helping communication for people with disabilities who have difficulty with conversation or expression.
  • People recognized as having severe disabilities (people with severe disabilities) can apply for activity support services, and the support time needed for each individual is determined through comprehensive service support investigation. Currently, up to 480 hours per month are supported, but many people with disabilities complain that this alone is insufficient. Since the personal budget system converts part of this activity support benefit (about 20%) to personal budget, the problem of decreased activity support time is occurring.

🔎 Self-Determination Rights

• Self-determination rights are the right to choose and decide one's own life.
  • Self-determination rights refer to the right of individuals to choose and decide for themselves about matters related to their own lives without external interference or coercion. It is a fundamental right derived from human dignity and value and the right to pursue happiness guaranteed by the Constitution.
  • Self-determination rights are especially important in the field of welfare for people with disabilities. First, people with disabilities have long been treated as passive beings whose lives are decided by families, facilities, or experts. Second, guaranteeing self-determination rights means a shift in awareness that recognizes people with disabilities as active subjects. Third, being able to choose what services to receive and how to live enables true welfare.
  • The personal budget system for people with disabilities is a system to strengthen self-determination rights. It allows people with disabilities to choose and combine services they need themselves, rather than unilaterally receiving services decided by the government. However, in actual operation, problems appear where opinions of the person themselves are not sufficiently reflected and decisions of guardians or families are prioritized. Also, if there are insufficient services to choose from, only formal choice is given and actual exercise of self-determination rights is difficult.

🔎 Voucher System

• The voucher system is a method that allows users to directly choose services.
  • The voucher system is a method where the government provides vouchers (coupons) that can be used for specific services, and beneficiaries choose and use service providing organizations they want. It is provided in the form of vouchers that can only be used for specific purposes, not cash support.
  • Characteristics of the voucher system include first, beneficiaries' choice is guaranteed. They can choose the organization they want from several providing organizations. Second, it can improve service quality by inducing competition among service providing organizations. Third, the government can control fiscal spending while activating private service supply. Fourth, unlike cash support, since it is used only for designated purposes, it is easy to achieve policy objectives.
  • Currently, activity support services for people with disabilities are also provided through the voucher method. People with disabilities receive activity support benefit vouchers, choose the activity support organization they want, and receive activity assistants dispatched from that organization. The personal budget system aims to convert part of this voucher method to personal budget to enable broader service selection. However, if there are insufficient services to choose from, both vouchers and personal budgets lose effectiveness.

🔎 Changes in the Paradigm of Welfare for People with Disabilities

• Welfare for people with disabilities is shifting its paradigm from protection to rights guarantee.
  • Traditionally, welfare for people with disabilities approached from the perspective of 'protection and charity.' People with disabilities were seen as weak people who need help, and the state and society unilaterally provided services. People with disabilities remained as passive beneficiaries, and their choice about their own lives was limited.
  • However, recently the paradigm is changing to a 'rights-based approach.' First, people with disabilities are recognized as subjects of rights. Second, self-determination and choice of people with disabilities are guaranteed as much as possible. Third, social barriers are removed so people with disabilities can participate in society equally with non-disabled people. Fourth, people with disabilities directly participate in the process of establishing policies for people with disabilities ("Nothing About Us Without Us").
  • The personal budget system for people with disabilities is part of this paradigm shift. Designing and choosing necessary services themselves rather than receiving services decided by the government recognizes their status as rights subjects. However, if the system is introduced only formally and substantial choice is not guaranteed, the meaning of the paradigm shift can fade. True change is possible only when sufficient budget and infrastructure and guarantee of participant involvement are achieved together.

5️⃣ Frequently Asked Questions (FAQ)

Q: What services can I choose if I apply for the personal budget system for people with disabilities?

A: You can combine various welfare services such as activity support, rehabilitation treatment, purchase of assistive devices, and psychological counseling.

• If you use the personal budget system, you can convert part of existing activity support benefits to personal budget and purchase various services. First, you can use rehabilitation treatment services such as physical therapy or occupational therapy. Second, you can purchase or rent assistive devices such as wheelchairs, electric beds, and communication assistive devices. Third, you can receive services such as psychological counseling or social adaptation training. Fourth, you can use it for costs of participating in cultural, leisure, and sports activities. Fifth, you can utilize it for participating in vocational training or education programs.
• However, you cannot freely choose all services. Service items that can be used are limited, and actual use is only possible if there are organizations that provide those services. Especially in local or rural areas, available services are very limited. Also, since existing activity support time decreases the moment you convert to personal budget, it is desirable to choose when you have additional services you need while basic daily life support is sufficient.

Q: Activity support time is insufficient - should I use the personal budget system?

A: If activity support time is already insufficient, you should carefully consider the personal budget system.

• The personal budget system converts about 20% of existing activity support benefits to personal budget. For example, if you are receiving 200 hours of activity support per month, participating in the personal budget system will reduce activity support to 160 hours and you will receive an amount equivalent to 40 hours as personal budget. If 200 hours is currently insufficient and family is providing additional care, reducing to 160 hours can be a big burden. More than half of those who dropped out midway in the pilot program cited lack of activity support time for this reason.
• Therefore, it is good to consider the personal budget system in the following cases. First, when activity support time is sufficient and there are additional services needed (rehabilitation treatment, assistive devices, etc.). Second, when there is no major disruption to daily life even if some activity support time is replaced with other services. Third, when services you want to use are actually provided in your area. If activity support time is absolutely insufficient, it may be better to demand increasing activity support benefits themselves rather than the personal budget system.

Q: What is most important for the personal budget system for people with disabilities to succeed?

A: Securing sufficient budget, expanding service infrastructure, and guaranteeing participant involvement must be achieved together.

• For the personal budget system to work as originally intended, several conditions must be met. First, the most important thing is budget expansion. New budget must be invested to increase activity support time while also providing personal budget, rather than splitting existing benefits. Only then will the problem of insufficient activity support time be solved. Second, available service infrastructure must be expanded. Various services such as rehabilitation treatment, psychological counseling, and assistive devices must be provided evenly nationwide for choice to have substantial meaning. Third, care workers must be expanded. Treatment of activity assistants should be improved and sufficient workforce secured for stable service supply.
• Fourth, substantial participation of people with disabilities themselves must be guaranteed. In the planning process, the opinions of people with disabilities themselves must be reflected as the top priority, and sufficient communication support should be provided if expression is difficult. Fifth, professional counseling and support systems must be established. Professional help is needed to understand the complex system and choose services that fit oneself. When all these conditions are met together, the personal budget system can establish itself as a system that strengthens self-determination rights of people with disabilities and improves quality of life.

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