Agenda item

Report of the Deputy Chief Executive and Director for Families and Communities

The Forum considered the report of the Deputy Chief Executive and Director for Families and Communities which provided a detailed update on the High Needs Block funding.  Members of the Forum were informed that the forecast overspend on the 2020/21 High Needs Block (HNB) was now £5.5m which was significantly worse than previously forecast but was in line with previous historic overspends.  The Forum were reminded that at the time of setting the budget it was thought that the budget would enable the LA to improve the offer to special schools in line with maintained schools for the first time in several years. There was also additional investment through the newly formed Locality Hubs.   The Education, Health and Care Plans (EHCP) backlog had meant significant additional financial pressure across all school sectors and there had been an increase in the number of children with higher and more expensive needs.  The impact of this meant that at the end of the current financial year the overall DSG reserve would be in deficit. 

At the last meeting the Schools Forum had agreed a ‘deficit recovery management plan’ which used surplus Growth Fund money, set against the Dedicated Schools Grant (DSG) reserve.  This would be monitored closely to see if further action was necessary.

The Forum was reminded that the Government had reaffirmed their commitment to increase the school budget by £7.1 billion.  Subject to confirmation of funding levels, initial estimates were that the Council would, with a contribution from the Growth Fund allocation, be able to fund in full, the National Funding Formula (NFF) for schools in 2021/22.

The report listed the reasons for the increase in demand on the HNB.  It was explained that this was a general list, some of which had more relevance to this year than others, for example there had been less permanent exclusions this year from mainstream schools but over a longer time period this had had a significant effect on the budget.  The extension of the age group to 25 years for those with EHCP’s had been introduced a number of years ago.

The first meeting of the High Block Needs Working Group had been convened and had met during the previous week.  A copy of the notes of that meeting had been emailed to the group for information.  Claire Evans and the Chairman were members of the working group and informed members of the usefulness of the group and its intention to meet and share information and try to come up with manageable suggestions for more efficient use of the HNB.

It was requested that all members of the Forum email their thoughts to the Assistant Director for Education Strategy and Improvement who would collate and circulate to the forum.   Following a question of the implementation timescales of any recommendations made by the working group, officers informed the Forum that they would be writing out to schools within the next few weeks with the settlement and matrix level funding for next year.  Any recommendations made by the working group would be fed into conversations on the Education banding tool (next report on the agenda) and introduced in 2022/23.

The report also outlined the School funding settlement for 2021/22.  The £2.2b uplift nationally, against all the key funding blocks meant that Staffordshire schools block had increased to £529.9m, an increase of £19.1m or 3.7% which should meant that in 2021/21 the LA should be able to fund in full the National Funding Formula.  The High Needs Block funding would be £101.01m an increase of £11.06m on the previous year.  The rates to be applied next year will be reported to the Schools Forum at the March 2021 report.

The Early Years Block had increased to £50.548m an increase of £0.681m or 1.4%.  This allocation was based on the January 2020 census and there was still an intention from Government to use the January 2021 census which would be adjusted in July 2021.   It was felt that the risk was that the census number of children will be low due to the pandemic and work was taking place with Government to ensure that this did not adversely affect the overall level of funding. There was concern that there were 4,000 less places taken up in nursery places due to key workers taking priority and the effect this would have on next year funding.  Officers had made representations to Government and there had been reassurances that the LA will not be penalised by the potentially low figures and that as children return to nursery there would be funding.  Continued representations would continue to be made.

Following a question on how the early years funding would be passed out to providers, the Forum was informed that Officers were currently waiting to hear what the Governments funding position would be.  The LA intention would be to pass out the rises to the sector as in previous years, but there may need to be a larger contingency if there wasn’t clarity from the Government.  Officers would make contact with the Forum as soon as more information was available, and a meeting would be arranged if it was felt appropriate.

Following a question on the prudential commitment to borrowing for SEND. the Forum were reminded that this was long term and had approximately 10/15 years left to repay.  The backlog of EHCP’s had been largely cleared but it was not yet clear how many had failed due to time obligations which were a result of LA delays.

RESOLVED – That:

a)    The update on the High Needs Block since the previous report in October 2020 be noted;

b)    That the latest Dedicated Schools Grant Government settlement be noted.

c)     Members of the Forum email their thoughts to the Assistant Director for Education Strategy and Improvement who would collate responses and circulate to the forum.