I've been told by ECHC (and also read in Baby Love a.k.a The Bible) that honey in small children can cause botulism.
As I didnt know what botulism was, I just googled it, and found the below reference.
I would steer clear of it.
Actually Australian honey is tested and does not contain the botulism spores.
"Infant botulism arises from ingestion of spores rather than pre-formed toxin. Sources of spores include foods such as honey and dust. Honey has been described in the US literature as a source of infection but never implicated in Australia and surveys of Australian honey have failed to identify C. botulinum." Victorian Government Health Information
So don't freak out so long as you check that the honey you buy is 100% Australian.
Honey helps with a sore throat and seeing as there is nothing else that you can give a bub to help sooth a sore throat that is why you can use honey water. I know when I make it for a sore throat I use 2 teaspoons of honey in a cup (250ml) of boiled (hot) water and lemon. If you are doing it for a bub leave the lemon out and let the honey water mix cool before giving it.