Agenda item

To consider a report from Assistant Director, Finance and Director, Education on the High Needs outturn position for 2020-21 and update on the 2020-21 budget position and management of the High Needs deficit.

Consideration was given to a report of the Assistant Director of Finance and the Director of Education, which provided information on the High Needs out turn position for 2020-21 and an update on the 2021-22 budget position and management of the High Needs deficit.

It was, again, highlighted that the position for 2020-21 had been finalised and that there was an in-year deficit of £1.822m (after the Schools Block transfer of £0.850m).  Members were made aware that this was an improved positon on both the original and revised projections, which had previously been shared with Schools Forum.  They were informed that the main reasons for this change were:

·                A slowing in the growth of the number of EHCPs; there had been reductions on both the numbers of EHCPs as well as cost of placements in both the independent and Post-16 sector

·                Receipt of additional income and grants (relating to Pupil Premium, SEN Inclusion, Covid and increased income from OOB placements)

·                A number of commitments outstanding from previous years where invoices had not been received from providers had been reviewed which resulted in a reduction of costs expected

·                A service redesign and active management of service spend in SEN Support services had been carried out, which had resulted in a reduction of costs along with some smaller savings.

It was stated that the predominant reason for this change was directly linked to a slowing in the growth of the numbers of Education Health Care Plans (EHCPs) and less costly placements within the both the independent and Post 16 sectors.  Reference was made to Table 3, to demonstrate this and it was stated that the borough was now broadly in line with the national average for EHCPs. 

It was explained that, whilst numbers had increased in the mainstream and special sectors, there has been reductions in the numbers of students placed in the independent sector and post-16 sector. It was stated that this reduction could also be attributed to:

·         The SEND Team challenging and reviewing the most costly placements

·         Movement within our cared for children cohort placed in education who have previously been attached to residential placement usually at a high cost.

·         A number of high-cost placements have been reviewed at the point of key stage transfer and young people have been transitioned back into borough.

In relation to the current budget position, it was highlighted that the High Needs budget continued to remain under significant pressure and Members were reminded that Tameside was still receiving a cap of 12% on National Funding Formula allocation.  This equated to £3.151m of funding, which was not received by the borough as a result of this cap.

Members were informed that the 2021-22 budget was projecting an in-year deficit of £1.278m and a cumulative deficit of £2.964m (after the Schools Block transfer of £0.878m).  However, it was explained that a number of savings were expected as part of the Deficit Recovery Plan and that this should see the in-year deficit reduce to £0.948m by the end of 2021-22.  In addition, Members were made aware that initial estimates showed potential further surpluses in the Early Years and Schools Block, which could result in an overall DSG deficit of £2.027m.

Reference was made to Table 4 and it was highlighted that there had been growth in-built at £1.352m.  It was explained that this figure was still under review and it was acknowledged that it was challenging to try to use trend data to project and assess the cost of future growth.  Members were informed that there had been a report commissioned from a company called Edge-ucate, who will provide assistance in projecting SEND across the borough over the next 10 years and help to provide accurate projections of future growth.

Updates were provided on DSG recovery and Members were informed that a further update would be provided at the next meeting to reconsider the growth projections, in light of the change in growth in 2020-21.  It was also highlighted that representations had been made to DfE outlining the impact of the funding cap and the impact on ability to manage spend within High Needs Funding.

Members were informed that, as part of the SEND review, announced by DfE in September 2019, a first stage consultation had been launched in February 2021 and ran until March 2021.  It was explained that this consultation formed the first part of a longer-term review of the High Needs National Funding Formula and would consider how the distribution of High Needs funding could be improved in order to achieve the highest quality support for the most vulnerable children and young people.  As responses were still being analysed by DfE.  Members were made aware that a further update would follow with regard to any outcome or changes to the Funding Formula for 2022-23.

Comments were shared in relation to the positive impact on the budget following the implementation of a variety of strategies.  However, it was acknowledged that, whilst the cap on this budget remained, there was still an enormous challenge.  It was stated that there was a paper being presented to Executive Cabinet later this week, which, if approved, would also help to increase special school places, finalise sixth form provision and help to increase resource base provision; all of which were elements included in the Deficit Management Plan.

Concerns were raised in relation to the review and the work undertaken with the traded services element of the SEND team.  It was explained that this would need to continue to be monitored, along with the amount of traded income that is received.  It was highlighted that, if the targets for traded income were not able to be met, it would be likely that the SEND support trading elements would have to cease.  It was, therefore, made clear that these conversations with the Inclusion and Funding groups would continue in advance of the next meeting of Schools’ Forum in order to ensure that decisions are able to be made and further pressure is not placed on the budget. 

RESOLVED

That the contents of the report be noted and supported