Agenda item

To consider the attached report of the Assistant Director, Finance and the Assistant Director, Education.

Consideration was given to a report of the Assistant Director of Finance and the Assistant Director of Education.  The report outlined the work streams proposed to address the Dedicated Schools Grant (DSG) High Needs deficit.  It was highlighted that these strands of work had been discussed at previous meetings of Schools’ Forum and that these proposals would be included in the DSG Management Plan to the DfE, outlining the recovery proposals.

Members of the Forum were reminded that, under the 2020/21 Dedicated Schools Grant (DSG) conditions, paragraph 5.2 required that any local authority with an overall deficit on the DSG account at the end of the financial year 2019/20 or whose DSG surplus had substantially reduced during the year, must present a plan to the DfE for managing their future spend. 

Reference was made to previous discussion at Schools Forum on 29 September 2020, where members had previously indicated that they would be minded to support a 1% transfer from the Schools Block to the High Needs Block and that a disapplication request must be submitted to the Secretary of State in order to facilitate this. 

The plan set out the proposed actions to address the deficit, which, as reported in the September 2020 meeting of Schools Forum, was forecast to be £3.638m.  Details of the plan and an outline of the measures to mitigate this deficit were presented.

With regard to funding, it was proposed that, subject to the approval of Schools’ Forum, a 0.5% transfer from the Schools Block be made to the High Needs Block, with a further transfer of 0.5% to be requested, subject to Secretary of State approval, assuming that this could be achieved in adherence to the NFF funding bands.  The final element of this funding proposal anticipated that future funding from the DfE would be provided, with the removal of the significant cap on funding (£3.1m for Tameside).

In addition, it was stated that a detailed review of services funded from the High Needs Block was underway, which was expected to realise financial savings.  Areas under review included Sensory Support Services and Specialist SEND Services.  Alongside this, it was also highlighted that there were currently 2 specialist posts, currently funded inappropriately from the High Needs Block.  As both of these post solely supported the Early Years agenda, it was explained that they would be funded from the Council’s centrally retained element going forwards.

Members of the Forum were made aware that a review of Element 3, top-up funding was underway.  It was explained that the financial implications of this had not been fully considered at this stage as a banding model was being developed, which focused on the provision needed to support the pupils need rather than funding the type of need.  With this in mind, a Matching Provision to Need (MPTN) document had been developed by the SEND team and would be fully consulted upon moving forwards.

As previously discussed at Schools Forum, it was explained that a review of resource bases was also underway in order to increase provision in the borough; to meet the needs of young people locally and reduce the need for Out of Borough and Independent settings.  It was envisaged that additional places in each of the four localities be established and, whilst it was acknowledged that these proposed changes would require additional funding to establish, it was stated that this would support the LA in avoiding more costly provision elsewhere.  It was, therefore, anticipated that this would represent a net saving.  Members of the Forum were also made aware that the LA would look to further develop additional sites and carry out a review of the centrally managed bases.  The outcome of this review would, again, be subject to the LA’s normal governance and staffing related consultation and decision- making processes.

In relation to Building Contracts and Estates Review, it was explained that one of the special schools had a PFI style contract for which a review would be undertaken in order to assess value for money.  It was envisaged that potential savings could be found from this contract.  Furthermore, it was explained that a review of the special school estate use of PFI buildings would be considered over the longer term, including its use and whether better use of space could be identified.  Members of the Forum were informed that both of these reviews would require appropriate decision making through the LA’s normal governance routes and approval before any savings could be realised.

An explanation was provided in relation to Growth and Overcapacity Funding in special schools.  This followed an initial discussion during Schools Funding Group in October 2020 and was with regard to the funding of additional special school places outside the annual place review process.  It was explained that Schools Funding Group had supported a 5% range of placements and had asked that this be shared with special schools for consideration.  This proposal had previously been shared in Summer 2019.  However, at that time, the proposal was stalled due to significant increase in growth.  It was stated that, as growth had now stabilised and additional provision was being commissioned within the borough, it was appropriate timing to revisit this proposal.

Members of the forum were informed that sixth form provision was being established at Cromwell school to provide increased parental choice and expand the provision in the borough, with appropriate LA governance and consultation underpinning this proposal.

In relation to Tameside Pupil Referral Service (TPRS) provision and Inclusive Schools, members were informed that, following the appointment of a new headteacher at TPRS, the post holder would be looking at the rate of exclusions in the borough and appropriate support to schools.  It was expected that, with appropriate support over a longer term, exclusions would reduce and, therefore, the number of places needed at TPRS would decrease accordingly.  It was also highlighted that funding for targeted interventions would be considered as part of this plan.

Members of the Forum were informed that, in line with current DSG regulations, the LA would be following the guidance that funding for excluded pupils follow the pupil.  It was explained that the regulations state this should include all pupil-led funding and pupil premium, where appropriate, and that this would be implemented from January 2021.

In conclusion, it was stated that, without appropriate action, the High Needs DSG Block would continue to overspend and the deficit would be increased.  This deficit was currently being cash flowed from LA general funding and reserves.  It was highlighted that this was not sustainable.  Without the Management Plan, members were informed that the LA would be in breach of the DSG conditions of grant and would be subject to further investigation by the DfE, on behalf of the Secretary of State.

RESOLVED  

That the contents of the report be noted and supported