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 forecast outturn for the 2023/24 HNB was a £21m overspend (c £1m higher than the position last reported at Q3). Demand had continued to exceed capacity. Demand was up by 55% from five years ago with almost 7,700 Education, Health and Care Plans (EHCPs) in place, an increase of 500 per annum. This had impacted all areas, specifically the independent sector where numbers were reported as above 650.

At the end of the last financial year the DSG reserve went into deficit by c£14.2m and it was reported that this would deepen to more than £30m given the expected overspend in 2023/24. Additional Government funding next year would see SCC’s High Needs Budget increase to £132.4m; an increase of £5.4m (c.4%) compared with 2023/24 and in line with previous forecasts. The HNB budget for 2024/25 would also be supplemented by a further 0.5% transfer from the Schools Block (c.£3.2m) approved by the Secretary of State, bringing the total to £135.6m. The funding rise would be insufficient to close the funding gap and it was likely that a further overspend would arise in 2024/25, and it was highlighted that the Local Authority would continue to lobby the Government for additional funding for the sector. Importantly, it was noted that none of the funding increase would be used to repay historical deficits.

For 2024-25 the Council would hold funding rates for all state funded special schools, on a like for like basis, in line with the Government set Minimum Funding Guarantee of 0.0%. However, a further additional payment would be made to PRUs and Special Schools, equivalent to 3.4% of 2023-24 grant funding, calculated at current place numbers, in recognition of increasing costs. As in previous years Special Schools and PRUs would continue to receive the separate Teacher’s Pay additional Grant. The allocations from the DfE were still to be confirmed.

The new Education Banding Tool (EBT) had been implemented in April 2022. During Summer 2023 the decision was made to suspend it. SCC, whilst still committed to the EBT, had identified that further work was required to give assurance that the dataset was robust before any safe budget modelling to support a future decision on the reinstatement of the EBT. It was therefore envisaged that any reintroduction of the EBT would not take place before April 2025. SCC would continue to keep schools informed of further progress.

It was highlighted by Steve Barr that Schools and School Leaders would rather they were meaningfully and properly consulted prior to the reintroduction of the EBT, even if it meant a further delay to the proposed reintroduction date. The Assistant Director for Education Strategy and Improvement stated that SCC intended to re-engage with schools in the summer term of 2024. It was noted that the process would not be allowed to drift toward the higher banding levels again, and a number of options were being considered and would be discussed fully as part of the consultation process.

In response to a question from Richard Sutton asking how schools would be informed of the reintroduction of the EBT, it was confirmed that this would be done through general communication directly with schools.

The Chair highlighted that most Special Schools were currently over planned-places. As Teachers grants were based on planned places there may be some discrepancies between a school that had more children in the setting than it planned to have that SCC would need to take into consideration.

Resolved: a. that the High Needs Block budget update 2023/24 and latest forecast outturn be noted.

b. That the proposed High Needs Block budget 2024/25 be noted.