Issue - meetings

To update the Schools Forum on the DSG High Needs Block Budget for 2024/25.

Folake Olufeko, Senior Finance Analyst introduced the report, which informed the Schools Forum of the detailed High Needs Block (HNB) budget for adoption in 2024/25.  The Forum noted the following key points as part of the update provided:

·             The DfE’s HNB funding had been confirmed at £85.0m for 2024/25.  This was £2.7m more than received in 2023/24 and represented a 3% increase.

·             In addition, Schools Forum had approved a Schools Block transfer of 0.5% totalling £1.4m.  This meant that the total funding for the HNB in 2024/25 was £86.4m.

·             The DfE would be recouping £9.0m of the total HNB funding to be paid directly to Academies for their base funding.

·             The budget assumed that the top up banding rates would remain the same for the mainstream schools, Pupil Referral Units (PRUs), Additionally Resourced Provisions (ARPs) and special schools.  These rates had been detailed in Appendix 2 of the report.

·             A review of Brent’s banding matrix, focussed on top-up costs for pupils with an EHCP in both mainstream and ARP placements was underway and this would be presented at a later Schools Forum, with proposals to move from the current hours led system to a more needs-led provision-based approach in funding.

·             The budget included a £0.659m allocation for the teachers’ pay and pensions grant for special schools and PRUs.

·             In line with the DfE’s requirement to pass on 3.4% of the additional High Needs Block funding to special schools and PRUs, £1.2m had been set aside to account for this cost.

·             Although rates remained the same as in 2023/24, there were increases in overall top-up funding for special schools and mainstream schools both in and out of the borough and this was in line with the rise in demand and the spending patterns of previous years.  A total £2.1m of the increased HNB funding had been allocated in response to the demand against these lines.

·             The council was investing in new ARP provisions i.e., Preston Park which would commence in September and Elsley Primary due to commence in April, however the start date may be delayed subject to completion of the building.

·             The recoupment budget was an income budget which offset expenditure on pupils from other boroughs.  This budget line had been increased by £1.1m to a total of £3.5m, in line with the expected increase in demand.

·             Due to the nature of the charging process for post-16 provisions, there was a challenge to provide accurate forecasts for this service.  The budget had been set in line with the best estimate of the current financial year’s forecast at £5m.

·             A zero-based budget setting approach had been applied to the budgets for SEN services.  This area had seen a budget reduction mainly due to aligning staffing costs to current agreed establishments, removing vacant posts as well as accounting for recharges to other areas of the DSG as well as the council’s general fund account.  The surpluses arising from that had been used to off-set the expected increased cost against the top up  ...  view the full minutes text for item 8

To update the Schools Forum on the DSG High Needs Block Deficit Management Plan

Folake Olufeko, Senior Finance Analyst, introduced the report that informed Schools Forum of the detailed High Needs Block (HNB) budget for adoption in 2023/24, with the following key points highlighted:

·             The HNB budget for 2023/24 included the £1.2m Schools Block transfer and a HNB top up of £3.5m allocated to Brent following the Autumn statement 2022 bringing the total budget to £83.5m, however there would be a claw back of £8.6m from the DfE to be paid directly to Academies, leaving a balance of £74.9m.

·             Due to the increased need for specialist provision placements, there had been several changes to the funding and top up funding budgets as illustrated in Appendix 1 of the report.

·             The HNB budget included a funding allocation of £0.3m for two new ARP’s, Newfield Primary, due to open in April 2023 and Elsley Primary, due to open in September 2023, plus an allocation of £0.2m for the Sunshine Inclusion Base at Willow Family Wellbeing Centre

·             The SEN services budget was notable due to the SEN transport costs that would be covered by the General Fund in 23/24 not the DSG budget.

·             The budget was threatened by the risk of rising inflation prices for SEND provision in out of borough placements and independent settings where provisions were also seeking over inflationary prices to deal with pressures. It was felt this could be partly mitigated by effective commissioning arrangements.

·             Officers advised that the budget had been discussed with the High Needs Sub Group ahead of the budget being presented to the Schools Forum,

The Chair invited The Forum to ask questions in relation to the information reported on the High Needs Block budget, as the Forum had no further questions the Chair thanked officers for their report and the Forum RESOLVED to note the content of the report detailing the High Needs Block budget for adoption in 2023/24.