Agenda item

The report of Marie Taylor (Head of Finance – Children & Education) seeks to present the budget and budget monitoring information against the Dedicated Schools Grant (DSG) for the financial year 2020-21 as at 30th April 2020.

The report of Marie Taylor (Head of Finance – Children & Education) seeks to present the budget and budget monitoring information against the Dedicated Schools Grant (DSG) for the financial year 2020-21 as at 30th April 2020.

We wouldn’t normally bring a period 1 budget report forward to Cabinet or committee, however I felt it important to share what things could look like if behaviours don’t change.

As detailed in paragraph 6 of the report, in January 2020, the Schools Forum approved a 0.7% transfer from the Schools block to support the High Needs Block. This was not approved by the Secretary of State. The amount which was £600k then, was put into the Schools Growth Fund. Growth fund set at DfE estimate. 

Early Years (EY) budgets

We would be reassessing what EY looks like when we get the grant later in the year. We have raised queries with DfE on no additional funding being received and await a response.

To ensure we could fulfil our efficiency duty, we had to ensure there was a scheme where settings could open. Spoke to EY reference group and agreed that all settings would receive 100% of estimated numbers for the summer term for April & May.

Closed settings to receive 80% of estimated numbers funding and the remaining 20% towards the open settings. We awarded £100 per child per setting per week.

From 1st June it was Government expectation that all settings would be open and as a result we wouldn’t be able to provide that level of support. Working on a proposal for a different scheme that would provide some support for open settings but due to increased take up, the previous support scheme was unaffordable.

In High Needs there was a projected overspend of £10.5m. Assumed that spend was at same level as last year but for demand budgets have included a 12% increase.

In paragraph 14 – on 1 April there were 3860 children with an EHCP, with a 12% increase that would take the number up to 4321 in March 2021. This would be an increase of 461 children.

Para 16 – DSG deficit reserve, there would be an early years adjustment in July/Aug 2020.

Takes us to a huge £19.7m DSG deficit reserve. If guidance was followed to the letter, the top slice of £11.76m would be removed. This would then come back to the 20/21 overspend figure. Figures are significant and concerning.

Questions

The recovery plan for 2020/21 indicated a saving of £21m, were you now suggesting that there were now no savings?

Answer: I have shown a naive forecast, this is where we could be if behaviour does not change, and to know that we have a plan for it if we do not have change.

Early Years had been given no extra money. We were told to furlough our staff but on the eve of furlough, told that nurseries could only furlough to the extent of private income. In essence the 20% was zero for most people. Expect we will start to see the collapse of nurseries in autumn when we get to the end of the furlough scheme.

Resolved:

That Schools Forum note:

i)               The budget monitoring position at the end of April 2020 alongside the provisional outturn report for 2019-20, the update from the high needs working group and DSG deficit repayment reports, and

ii)             The forecast balance of the DSG deficit reserve as at the end of March 2021 pre and post the transfer to schools block.