Agenda item

Consideration was given to a report of the Director of Resources and the Assistant Director of Education, which provided an update on the current DSG deficit position along with updates on the Delivering Better Value programme and the action plan to address spending pressures

Members were informed that the DSG reserve brought forward at the beginning of 2022-23 was (£3.243m) and the in-year deficit on the High Needs Block in 2022-23 was (£1.018m) after a transfer from the Schools Block of £0.954m.  It was explained that this had been offset by an underspend on the Early Years Block of £0.617m and an underspend on the Schools Block of £0.353m.  However, it was noted that these were not expected to continue, following revisions to the assumed Early Years uptake.

It was confirmed that the High Needs Block in year deficit had reduced in 2022-23 compared to previous years and suggested that this was due to a number of factors, including strong Maintained Special School (MSS) provision growth with 122 additional commissioned places in maintained special schools for September 2022 and write-offs of prior year recoupment liabilities.

It was explained that High Needs expenditure was continuing to grow rapidly, being set to more than double between 2023 and 2028.  Members were informed that, whilst growth in provision in the maintained special school sector had been a strength (with 122 additional commissioned places in September 2022 and a further 77 planned for September 2023), the DBV future year forecasts assumed that, after these planned expansions have taken place, maintained special schools would again reach capacity and usage of higher cost independent placements would increase.

It was noted that the rapid growth in EHCPs, which had historically been very low compared to GM neighbours had not been matched with growth funding due to the cap on High Needs Block gains (7%) and this had been the main factor in the High Needs Block deficit.  With this in mind, it was explained that the goal of the Delivering Better Value programme (DBV) was to identify sustainable changes to the local SEND system, which could drive high quality outcomes for children and young people with SEND and culminate in an evidence based grant application to assist in the implementation of these changes.

A detailed outline of modules 1 and 2 of the DBV programme were outlined for Members and the two main focus areas of the DBV were highlighted as:

1.   Inclusion - create an Inclusion Quality and Outreach Team, linked to existing Special Schools and Resource Provisions, and introduce a programme of training and workforce development (including parents and carers as appropriate).

2.   Transitions – establish a new Early Years Assessment Centre with co-located wrap around services. The plan to improve the effectiveness and confidence surrounding transitions will also be supported through supporting the clearance of the backlog of annual reviews and identifying those pupils that may struggle at transition and providing early support.

It was explained that these identified high impact areas also crossed over with a range of SEND improvements that were happening outside of the DBV programme, in particular the redesign of SEND Teams, review of the Specialist Outreach Support Team and SEND Sufficiency.

Members were informed that, if successful, the £1m revenue grant bid would likely be available from September 2023 and was expected to be utilised within two years.

An update to the existing management plan was provided for Members.  This included detailed information relating to the Resource base Review and the proposal to establish 40 additional local places  in 2023-24 was shared with Members.  Whilst this would not offer financial savings, it would help to address in borough demand and avoid more costly placements in independent and non-maintained schools.

Members were also made aware than work had been ongoing with maintained special schools with a view to increasing commissioned places to match growing demand.  As such, Members were informed that there had been an increase of 77 places for the 2023-24 academic year.

Members were reminded that an overcapacity policy had been introduced in 2022-23 with the expectation that it would achieve cost avoidance of £50,000 per year.  However, as actual growth above commissioned places had been far higher than forecast, the impact had been greater than intended and was currently expected to have achieved cost avoidance of £171,666 over the 2022-23 academic year.  It was explained that special schools, who had worked hard to accommodate additional pupils, had expressed concern that this had placed increasing and significant financial pressure on them.  Due to this, the decision had been taken not to continue with this policy for the 2023/24 academic year.

During discussion relating to contract reviews, it was stated that, one special schools had a PFI style contract and, with this in mind, a review would be undertaken to investigate whether this represented value for money.  It was noted that potential savings to the High Needs Block as a result of this review could potentially represent an annual £320,970.  It was stated that the outcome of this review would be considered by Elected Members at Executive Cabinet.

RESOLVED

That the contents of the report be noted.