Agenda item

The report of Marie Taylor (Head of Finance – Children & Education) seeks to update the Forum on issues related to the High Needs Block for the 2021-22 and the decisions that will need to be made as part of the budget setting process for 2021-22.  Appendix 2 which is the DSG Management Plan is to follow.

Marie Taylor (Head of Finance – Children and Education) referred to her report which sought to update Schools Forum on issues related to the high needs block and the decisions that would need to be made as part of the budget setting process for 2021-22.  Marie highlighted the following:

·       The budget proposal for the high needs block was approved in principle at the December meeting of the Forum and the only changes since this are the now confirmed planned places for September 2021 and the DSG management plan (contained in Agenda supplement (1);

·       The high need block allocation is £57. 529 million (which is an uplift of £5.5 million – 10.66% on 2020-21).  Looking at the current pressures there is £10.144 million that needs to be covered to meet current spend levels, £1.811 million which is the best estimate of planned placements and the top ups needed to support these placements, £4.716 million which is the estimated cost increase based on planned reduced EHCP rate of increase for 2021-22, £0.348 million for estimated contract inflation at 2%.  £2.260 million of savings has been identified as per the high needs block recovery plan, leaving an estimated cost pressure for 2021-22 of £14.606 million;

·       It is not possible to fully fund the pressures above from within the high needs block. In order to partially fund the pressures on the high needs block, there could be a transfer of the surplus from the central block (£0.192 million) a transfer of 0.5% from the schools’ block (£1.5 million).  However, this would still mean a funding shortfall which would be similar for other local authorities; and

·       The current forecast overspend on the School Funding reserve is £19.898 million. This is currently being cash flowed by the local authority.  This level of deficit has triggered the requirement to submit a DSG Management Plan to the DfE. This has been completed by the High Needs Recovery Group and will be encompassed into the governance and sign off alongside the Council’s budget and Schools Budget for 21-22 by Members at Council at the February meeting.

The Chair reported the DSG Management Plan was considered by the joint meeting of the School Funding and SEN Working Group and they had made some suggestions to add to the Plan.  The consultation on high needs funding was welcomed and it was suggested that Schools Forum with the assistance of the Officers do all they can to ensure that the other stakeholder groups are given the opportunity to respond to the consultation. 

Schools Forum were consulted and confirmed their support for the proposals detailed below.

Resolved:

1.    That Schools Forum note the pressures on the high needs block for 2021-22 and the potential options to reduce the shortfall against high needs budgets including agreeing a transfer from Schools Block to balance the high needs pressures.  (This decision was made later in the meeting under Agenda item 9)

That Schools Forum approve the draft DSG Management Plan for presenting to Cabinet and submission to the DfE.