Agenda item

The report of Marie Taylor (Interim Head of Finance) provides the details of the outturn position for the dedicated schools budget in 2018/19 and the DSG reserve at the end of 2018/19. 

Marie Taylor (Interim Head of Finance – Children’s Services) referred to the report which gave details of the outturn position for the dedicated schools budget in 2018/19 and the Dedicated Schools Grant (DSG) reserve at the end of 2018/19.  Marie highlighted the following:

·       The DSG was overspent by £4.183 million at the end of the year.  The overspend on the high needs block is £4.735 million and this is offset by underspends in the growth fund, early years and central blocks;

·       In September 2018 the High Needs Working Group was set up to identify contributing factors and to make proposals to reduce the cost pressure on the high needs block;

·       The growth fund underspent by £0.130 million which was a slight improvement on January’s forecast position of £0.080 million;

·       Budgets for the free entitlement for 30 hours childcare for 2, 3- and 4-year olds were underspent by £0.324 million but it is important to note that the this will have a post year adjustment from the DfE.  The forecasts underspend relates to the volume of take-up of the provision;

·       The biggest areas of overspend on the high needs budgets relate to Independent Special School fees, named pupil allowances and top ups in schools and alternative provision and elective home education support for pupils with SEND;

·       At the Schools Funding and SEN Working Group meeting further information on high needs spending was requested and so the attached Appendix 2 is an internal management report which shows activity data across placement budgets for 2018/19;

·       One of the major drivers of increased cost is volume.  The number of EHCP’s was 682 more in 2018/19 than was budgeted for;

·       ISOS, the external consultants who have been appointed will be updating the Forum at the next meeting in October to present their findings and recommendations.  At this point Schools Forum will be given the opportunity to consider a transfer from schools block to the high needs block and plan any necessary consultation and approval required;

·       The reserve brought forward of £0.846 million was reduced by the early years block adjustment of £0.035 million.  Wiltshire Council Members approved a £1.3 million contribution to the DSG reserve at Cabinet on 11 June 2019 which now takes us into a healthier position;

·       The overspend and adjustments to the DSG create a deficit DSG reserve of £2.072 million which equates to an overspend of 0.6% of total DSG.  If this overspend had been 1% or higher the local authority would have had to submit a recovery plan to the DfE to set out how we planned to bring the DSG account into balance within a maximum of 3 years.  The deficit is a cause of concern, but action is being taken to reduce it but we accept that it will be an ongoing problem;

·       There would be consultation due to be carried out in the Autumn regarding the setting of the 2020/21 budget and questions would be considered around a transfer from the Schools Block to the High Needs Block.   

Forum members asked about the increase in numbers of EHCP’s – it would be useful to know at what stage they are being granted and what provision is needed for them.  This information would help inform schools.

Helean Hughes reminded the Forum that ISOS were hosting workshops to hear views from schools and encouraged all to attend them.

Resolved:

That Schools Forum

1.    Note the final outturn budget monitoring position and the continued pressure on high needs budgets.

2.    Contribute to the ongoing work of the High Needs Working Group, a multi-agency response to the high needs pressures.

3.    Contribute specifically to the ISOS consultancy work on the high needs block.