Agenda item

To consider the attached report of the Director of Resources (S151 Officer) and Assistant Director of Education

Consideration was given to a report of the Director of Resources (S151 Officer) and Assistant Director of Education, which provided an update on the Dedicated Schools Grant (DSG) budget position for the financial year 2023-24.

Members were made aware that there was a forecast surplus of £0.016m on the Schools Block, which related to unallocated growth of £0.018m.  It was noted that this was slightly offset by academy conversion adjustments of £0.002m. 

It was explained that the Central School Services Block was expected to be spent in full and that there was a forecast in-year deficit on the High Needs Block, expected to be £6.178m, which would  reduce to £5.484m with the £0.694m transfer from the Schools Block. 

In relation to the Early Years Block, Members were informed that there was a forecast surplus of £0.737m.  It was suggested that this would be partially offset by a forecast deficit on the Early Years Supplementary Grant (EYSG) of £0.059m and noted that there would be a further adjustment following Spring term census data. 

A reduction in participation rates for 3 to 4 years olds was noted and this was explained as being mainly due to the reducing birth rate.  It was explained that Tameside was seeing a high level of take up (approx.. 97%).  Estimates suggested that universal uptake was reducing but after a previous upwards shift in extended entitlement, there was an estimated reduction in uptake in the spring term.

Members noted that there had been a gradual increase in 2 year old participation and, as a result of this, revised estimates for the spring term, showed an increase in expected uptake and, therefore, an increase in the distribution of funding.

Members were made aware that the Early Years Supplementary Grant (EYSG) had been updated to reflect the actual distribution of funding for the Autumn term and estimated distribution, based on estimated participation, for the Spring Term. 

With regard to the Early Years Teachers Pay Grant, Members were informed that the amount for Tameside was £0.070m.  This allocation was based on part time equivalent (PTE) data from the January 2023 early years, schools and alternative provision censuses and there would be no adjustment to the allocation.  It was explained that this was also subject to conditions of grant and it was  to be determined how this funding will be allocated to providers

With regard to the High Needs forecast position, Members were made aware that the year-end forecast was showing an in-year deficit of £5.484m, this represented an adverse movement of £0.393m, when compared to the forecast position reported in November 2023.

It was explained that the Growth forecast had been updated and reviewed following the real time exercise for the autumn term and that there had been spend to date of £1.249m.  A further £0.474m of Growth was also expected over the next 3 months to year-end.  This was based on the assumption that the number of EHCPs being issued would continue at a similar level to the previous 9 months (an average of 45 per month).

Members were informed that the High Needs forecast also included £0.100m expenditure in relation to Children’s Social Care (CSC) placements.  It was noted that a review was underway ensure all partner contributions, including Health, Education and Social Care were applied fairly and in accordance with the specific individual placement requirements. It was further suggested that this may identify additional contributions required from the High Needs Block.

Members were provided with information about the closing position of the DSG reserve for 2022-23 and the estimated position as at 31 March 2024. It was noted that, if the 2023-24 projections materialised there would be a deficit of £8.100m on the DSG reserve.   Members were assured that a deficit recovery plan had been developed and submitted to the DfE and that discussions were ongoing and the plan scrutinised as part of Stage 2 of the DBV programme.  Members were advised that the DSG position would continue to be closely monitored and regular updates would be provided to Schools’ Forum.

Discussion took place in relation to the assumptions surrounding the predicted growth in EHCPs and the continued costs in relation to out of borough placements.  Members were assured that much of the focussed work being undertaken as part of the Delivering Better Value Programme looked to address these issues and that timeliness of EHCPs remained a high priority, alongside offering support for mainstream schools to be able to provide appropriate and effective provision.

RESOLVED

That the contents of the report be noted and supported