At the heart of the Liberal vision of a fairer society is the belief that people should be in control of their lives – the belief that the state does not always know best.  For decades in the NHS and the social care sector, we have had a situation where the government will spend tens of thousands of pounds a year providing care for an individual, but giving that individual little or no control over the design and commissioning of their package of care.  We need to achieve a big shift from what has traditionally been a very paternalistic system to one that gives power to the individual.

Time and again as constituency MP and now as Care Minister, I have spoken to people who say their lives would be transformed if they could only have more control over the care and support they receive.  When you talk to people who have benefitted from personal health budgets you realise their potential.  One man I spoke to, who was part of the pilot in Kent, described how once he had control he was able to avoid repeated hospital admissions.  This had a dramatic impact on his well-being, and of course uses resources far more effectively.

I was therefore delighted to announce last week that from October 2014 a new “right to have” a Personal Health Budget will come into effect.  This will mean that all those in receipt of NHS Continuing Care will be entitled to a Personal Health Budget unless there are clear clinical or financial reasons why this would not be appropriate (which will have to be explained to the individual).

Putting individuals in control of their care packages can bring a range of benefits.

First of all, it encourages a shift in the way that money is spent from simply allowing someone to subsist to enabling them in living the life they want to lead: individuals can design a package of support that allows them to achieve their goals and live more fulfilled lives.

It can also save money for the system – care packages become more responsive to changing needs, and there is less likely to be a breakdown of support during transitional periods, avoiding crisis admissions and a need for higher levels of support.

Finally, when paired with accessible and detailed information about the services that are available, putting people in charge of commissioning their own care can drive up standards – when the service user is in charge of commissioning the service, care companies have an increased incentive to deliver good quality care. I am determined to develop the power of this concept further.  Giving those with mental health problems real control could make a significant difference.

Personal Health Budgets are not suitable for everyone.  Some people need specialist clinical involvement in designing their care.  Some people don’t want to have to commission their own care – they just want their care to work.  But for a significant number of people, this week’s announcement could have a really transformative effect on their lives.

* Norman Lamb is MP for North Norfolk and was Liberal Democrat Minister of State at the Department of Health until May 2015. He now chairs the Science and Technology Select Committee