Agenda item

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

Consideration was given to a report of Director of Education (Tameside and Stockport), which provided an update on the DSG deficit position in both 2022-23 and 2023-24, along with updates on the Delivering Better Value programme and the action plan to address spending pressures.

Members were informed that the High Needs Budget position for 2022-23 had slightly improved on the summer term and an in-year deficit of £4.385m was now forecasted, prior to any transfer from the Schools Block or savings identified as part of the High Needs Review.  When taking into account the agreed transfer from Schools Block in 2022-23 (£0.954m), it was noted that this would reduce the in-year deficit to £3.431m.

A range of proposed savings, which equated to £0.688m were detailed for Members and it was explained that this would further reduce the deficit to £2.743m.    However, it was acknowledged that there was a potential risk attached should these savings not materialise in full throughout this financial year.

With regard to growth, Members were made aware that the spend against forecast continued to be broadly in line with the planned budget.  However, it was outlined that there continued to be higher than average growth in the Independent sector, Out of Borough placements and Post-16 provision.  In contrast, growth in mainstream, special schools and resourced provision was lower than had been anticipated.  It was suggested that some delays in establishing new resource bases had contributed to this and noted that growth would continue to be monitored closely, with a more detailed review to be carried out alongside the SEND team.  Members were also informed that the number of Education Health and Care Plans (EHCP) had continued to increase in line with predictions

An update was provided on the High Needs Settlement, following December 2022 announcements from DfE, and providing comparison data with 2022-23.    It was highlighted that Tameside had seen an increase of 8% since 2022-23.  It was noted that this funding was subject to further updates during the financial year 2023-24 in order to reflect 2023-24 high needs places and import/export adjustments.

Based on the additional £2.3billion additional government investment over the next 2 years, it was stated that the High Needs Block would benefit from an increase of £400m.  In Tameside, it was explained that this would represent an additional £1.636m, which would take the overall increase to £4.301m (an increase of 13% when compared to 2022-23).

Members were made aware that the conditions of the DSG outlined that LAs were required to pass on to special schools the allocations of additional funding using a proportion of their additional High Needs funding in 2 ways:

•       For 2023-24, a Minimum Funding Guarantee (MFG) would be applied to special schools budgets. Previously this had always been set at 0%.  However, for 2023-24, it had been set at 3% (compared to the 2021-22 baselines)

•       For 2023-24, special schools and Alternative Provision (AP) Schools would receive a separate additional allocation amounting to 3.4% of their total place and top up funding allocated in 2022-23

It was explained that this additional 3.4% funding allocation would be excluded from Minimum Funding Guarantee (MFG) arrangements so that schools would receive 3% MFG increase relative to a 2021-22 baseline and the additional 3.4% in 2023-24.

Members were informed that 836 commissioned places had been agreed with alternative provision (AP) and special schools for September 2023 and a detailed breakdown of these was provided, alongside a comparison with September 2022 numbers.

An update on the Delivering Better Value Programme (DBV) was provided and Members were informed that Tameside were part of tranche 2.  It was stated that the programme would comprise of 2 phases over an 18 month period, both of which were outlined in the report.

A review of the Management Action Plan was provided and Members were reminded that, following a report approved by Schools’ Forum in November 2020 with regard to funding additional places in specialist settings, the report was looking to bring the local approach in line with national funding guidance.  It was noted that the first 5% of growth after the annual commissioned places would not be funded and it was outlined that, where places had been commissioned but not filled in specialist settings, consideration would be given to top-up payments against utilised place funding.  It was, therefore, anticipated that there would be a potential cost avoidance of £50,000 per annum rather than actual savings.  It was noted that, during 2022-23, this had already been reached and estimated savings would total approximately £82,000 and affect 3 schools.

Members were made aware that a Resource Base Review had been undertaken and the proposal to establish 40 additional local places in 2021-22, a further 40 places in 2022-23 and 40 more in 2023-24 was outlined, alongside an update on current progress. It was noted that work was continuing in order to expand this model in both the primary and secondary sectors and discussions were ongoing with a number of schools.  Whilst it was acknowledged that this proposal did not offer financial savings, it was highlighted that this helped in addressing demand across the borough and avoided more costly placements in independent and non-maintained schools.

It was explained that the Matching Provision to Need (MPTN) document had been paused and that further updates would be provided as part of the Delivering Better Value (DBV) programme updates. 

With regard to Contract Reviews, it was envisaged that savings could potentially be found following the review of a PFI style contract, which was in place at one special school and the Director of Education would report to Executive Cabinet; setting out options to terminate the Facilities Management (FM) agreement with both Great Academies and Samuel Laycock.  It was expected the potential saving to the High Needs Block as a result of this review would be approximately £279,000 per annum.

A review of the funding model for Tameside Pupil Referral Service was also outlined and it had been agreed that, where exclusions occurred, rather than the funding following the child, this would instead be returned to the High Needs Budget, which had realised savings of £61,112 in 2021-22 and was on target to achieve approximately £160,000 in 2022-23.  In addition, it was stated that a review of the number of places commissioned and inclusive practice with schools would continue to explore appropriate funding through working groups Tameside Primary Consortium (TPC) and Tameside Association of Secondary Headteachers (TASH).

Discussion ensued with regard to plans to reduce the growth in independent schools and it was acknowledged that Tameside continued to place a much higher percentage of children in specialist provision that statistical neighbours.  It was reiterated that work needed to continue as specialist provision was over capacity and that the demand for statutory plans needed to continue to be addressed, alongside improving the quality and consistency of practice and support available to all schools

It was noted that the budget continued to be capped at 7% and that the first meeting with DfE in relation to the delivering Better value Programme was scheduled for next week.

A question was raised in relation to the Growth and Over Capacity Funding and it was suggested that a significant majority of the £82,000 saving had impacted one school in particular.  It was stated that there were particular difficulties arising from the difference in the commissioned number and the actual number of pupils on roll for special schools.   As a result, a query was raised in relation to whether this situation would remain the same moving forwards in terms of overcapacity in one school, whilst others were reducing capacity.  It was acknowledged that special schools had been accommodating in supporting the necessary rise in provision.  However, concern was expressed in terms of the impact on school budgets as a result.

It was stated that the move to this model of funding places had brought Tameside in greater alignment with the DfE model of funding and emphasised that there was dual responsibility in managing the High Needs Block between Schools’ Forum and the Local Authority.  It was explained that some special schools, in particular, were more likely to experience this in-year growth as a result of the nature of the needs of their pupils and acknowledged that this would present different challenges for different schools.  There was also a suggestion that numbers of pupils supported by TPRS had significantly increased and it was felt that this information could be shared going forwards in order to better reflect the current situation for alternative provision (AP).

Following these discussions, it was agreed that conversations with special school and AP headteachers would be arranged in order to discuss the impact of this and that further information would be brought back to School’s Forum in a future meeting.

RESOLVED

That the contents of the report be noted and supported.