Agenda item

The report of Marie Taylor (Head of Finance – Children and Education) seeks to present budget monitoring information against the Dedicated Schools Grant (DSG) for the financial year 2022-23 as at 31 October 2022.

Marie Taylor (Head of Finance – Children and Education) referred to the report which presented the year end budget monitoring information against the DSG for the financial year 2022-23 as at 31 October 2022 and highlighted the following:

·    The overspend forecast of £9.260m was currently projected against the overall schools budget which was an increase of £2.223m which was largely due to the finalised September specialist school placements for the new academic year and a result of teams making gains on the inevitable delay due to children not being in school and able to be assessed during the pandemic and the social and educational wellbeing impact of lockdown on children had meant that the number of EHCP plans had exceeded pre-pandemic rates;

·           For the early years budgets there was a forecast underspend of £2.386m although it was anticipated that that the DfE’s post financial year adjustment would adjust for this in whole or in part in the 2023-24 financial year if the January 2023 census numbers fall.  The Inclusion Support Funding for those with additional needs was forecast to be overspent for first time as the offer had been extended for 30 hours in settings so that working parents could take advantage of it;

·           Officers had been successful with a 2022-23 bid for COMF grant funding to use in early years settings to allow them to remain open.  The Hardship fund had not had much take up in previous years but was available if needed;

·           The forecast underspend on the schools budget of £0.141m largely related to the school supply cover fund which was helping to offset the overall pressure on the DSG;

·           The high needs budgets continued to be of concern with a projected overspend of £11.820m.  The biggest areas of overspend are Independent Special School packages, alternative provision, named pupil allowances and top ups;

·           There was a projected 16.1% increase in the number of EHCP’s and it was hoped that this would soon reach a plateau and then start to drop again over time;

·           There was a small forecast understand of £0.034m of the central school services block budget which had been driver by careful management of the specialist education packages for children in care;

·           The DSG reserve brought forward of £25.973m is increased by the positive early years block adjustment.  The forecast overspend would take the reserve into a deficit position of £32.446m.  The LA was working closely with the DfE Developing Better Value partners CIPFA and Newton to enhance the current plans and this also added insight from other LA action plans and offered the opportunity to bid for transformational funding; and

·           75% of LA’s have a deficit DSG and those worst affected are part of the Safety Valve programme and those on the next level down are part of the Developing Better Value programme which Wiltshire are part of.

Resolved:

That Schools Forum note the year end budget monitoring position as at 31 October 2022 in conjunction with the high needs recovery plan and the Developing Better Value update.