Agenda item

To consider the attached report of the Assistant Director, Finance and the Director, Education (Tameside and Stockport)

Consideration was given to a report from the Assistant Director of Finance and Director of Education (Tameside and Stockport), which provided an update on the Dedicated Schools Grant (DSG) position for the financial year 2021-22 and an update on the Early Years financial outturn for 2020-21.

An update was provided for Members in relation to the current DSG settlement for 2021-22 and projected distribution/spend.  It was explained that there was an overall, in-year deficit of £2.032m forecast. 

A forecast surplus of £0.178m on the Schools Block was highlighted and Members were informed that this related to actual rates being lower than estimated and unallocated growth.  Members were reminded that, as previously agreed at Schools’ Forum, this unallocated growth would be used to support the deficit on the Dedicated Schools Grant (DSG).

It was stated that the Central Schools Service Block was expected to be spent in full and that the projected in-year deficit on the High Needs Block was expected to be £3.179m, which would reduce to £2.301m following the transfer from the Schools Block.  Members were also informed that a further £0.384m of estimated in–year growth for January-March 2022  had also been included in this figure and a detailed breakdown of expected growth across all sectors was provided. 

In relation to the Early Years Block, Members were made aware that there would be an estimated surplus of £0.091m.

With regard to the High Needs Budget for 2021-22, a detailed breakdown of the budget position was provided and Members were informed that there had been an increase in the in-year deficit of £1.164m.  It was explained that this was in line with expected growth in numbers of Education Health and Care Plans (EHCP), as previously reported.  A detailed picture of this growth across all sectors was provided and Members were informed that this would continue to be monitored closely.

Details of the final Early Years settlement for 2020-21 were provided and it was stated that, for 2020-21, the overall settlement for Early Years had decreased by £0.287m.  As previously reported, it was estimated that there would be a reduction of £0.293m in the final settlement, which had resulted in a surplus of £0.397m rather than the estimated £0.392m.  It was confirmed that this additional surplus would be required to support the wider DSG deficit and that the variation against the actual settlement related to additional funding received from the Early Years Pupil Premium.

Members were also provided with a detailed breakdown of the Early Years forecast for 2021-22, which reflected the current settlement compared with the forecast distribution/spend.  It was stated that there was a forecast surplus of around £0.091m.  However, it was explained that this would be adjusted in line with data collections from the summer and autumn terms and an estimated clawback of £0.696m.

Members were made aware that there was an anticipated underspend on the centrally retained elements of Early Years funding in 2021-22 and that this would be required to support the deficit on the Special Educational Needs Inclusion Fund (SENIF).  It was also acknowledged that it was extremely difficult to forecast the uptake of places, especially in light of the pandemic and it was noted that this complex area of funding would continue to be closely monitored.

Details on the closing position of the DSG reserve for 2020-21 and the estimated position of the DSG at 31 March 2022 were provided.  Members were informed that, if the 2021-22 projections materialised, there would be a deficit of £3.712m on the DSG.   It was noted that a Deficit Recovery Plan had been developed and submitted to the DfE and that discussions in relation to this were ongoing, with this position continuing to be closely monitored throughout the year.

It was noted that some information in relation to the centrally retained element of Early Years Funding had previously been provided and that this was hoped to address the relationship between PVIs and schools and associated school readiness amongst children.  It was also noted that a working group was currently being developed in order to support this.

Discussion ensued in relation to the High Needs position.  It was noted that the challenge in meeting sufficiency relied on the ability to expand specialist provision, whilst also effectively increasing inclusion within mainstream settings.   It was suggested that this was an area, which would require close monitoring and Members highlighted the importance of effective collaboration between mainstream and special sectors, alongside the need for enhanced SENCO induction and support.  Members were also informed that a copy of the SEND area inspection letter would be circulated following the meeting.

It was suggested that it would be useful to look in more detail at the growth of new EHCPs broken down further into primary and secondary sectors, and noted that this would be a useful piece of work, which could be undertaken in the near future.  Alongside this, it was also suggested that work on  how funding was being spent to provide effective support for SEND provision across mainstream settings could be undertaken in order to ensure value for money and to provide opportunities to identify and share best practice.

RESOLVED

That the contents of the report be noted and supported.