Agenda item

The Schools Forum received a report from the Director of Children and Families relating to the High Needs Block (HNB).

The Forum heard that the Government had initially indicated a HNB allocation 2023-24 for c £122.2m; however, in the Autumn Statement, the Chancellor confirmed additional funding for schools of c £2bn nationally including £400m that would be directed to the HNB. Staffordshire would receive a further £4.8m in 2023-24 which had to be used to provide additional support to Special Schools and Pupil Referral Units (PRUs) equivalent to 3.4% of the estimated total grant funding for each school.

For Staffordshire the HNB 2023-24 was £127.0m, a net increase of c£12m compared with 2022-23. It was insufficient to close the existing funding gap, and Staffordshire would continue to lobby for both additional funding and a fair and equitable mechanism for addressing cumulative deficits. It was SCC’s intention to pass on the full budget increase next year for the provision of SEND support; none of the funding rise would be used to repay historical deficits.

SCC recognised the financial pressures schools across Staffordshire were facing and given the increase in Government funding, would increase funding to providers by as much as was affordable, acknowledging the current pressures on the HNB and the depleted DSG balances which – at the end of the current financial year – would likely be in deficit by circa £14m.

2023-24 Special School budgets would be set based on a Minimum Funding Guarantee of 0.5%; ensuring that funding for all Special Schools, on a like for like basis, would increase next year by a minimum of 0.5%. This was in line with Government guidance for an MFG of 3% over 2 years. There would be no capping of school gains

In April 2022 SCC introduced a new Education Banding Tool (EBT) to help calculate top up funding in a fair and consistent way. The Forum heard that current monitoring of the ‘average’ top up cost of EBT placement costs compared with the matrix levels indicated an increase. Whilst the number of children assessed on EBT remained relatively low, the average ‘top up’ cost for those placements was significantly higher (c£11,800) compared with the matrix model (c£7,300). This represented an unaffordable increase in costs and appeared to reflect a significant ‘shift’ in the profile of assessments towards higher levels (i.e. EBT levels 7-10) compared with the desktop sample / exercise that had been undertaken as part of the implementation, and on which the proposed EBT rates were set. The EBT had been in place for a year and a review of the implementation would be undertaken during the forthcoming year to ensure it continued to deliver the intended objectives.

In response to a request for more information as to what form the EBT review would take, it was explained that negotiations had been undertaken to secure the services of the Commissioning Manager, who had supported the implementation of the EBT in 2022, to start the review process. A meeting had been arranged to take place in April 23 to develop the scope of the review. It had already been agreed that this would follow the same principles with which the EBT had been implemented, including the creation of a working group to support the process. It was agreed that an update would be brought to the Schools Forum in July 23.

The Forum raised concerns that the Supplementary Grant would be low as numbers used to calculate the allocation were based on figures of 2021-22, which were lower than normal because of the impact of Covid. It was explained that the calculation to determine allocations was prescribed by Government, and they had already calculated and published the amount that Local Authorities were expected to pass on to PRUs. This information was available on the ESFA website.

In response to a question regarding when it might be possible to see tangible results from the implementation of the Special Provision Strategy, it was confirmed that following the consultation process in the Summer Term, the Strategy would begin to be implemented from January 24 onwards. It was expected that on the ground enhanced provision would be visible from that point onwards.

Resolved: a. That the High Needs Block budget update 2022-23 and latest forecast outturn, be noted.

b. that the proposed High Needs Block budget for 2023-24, be noted.

c. That an update of the EBT review be added to the Work programme and be brought to the Schools Forum in July 23.