Agenda item

The report updates School Forum Members with the Forecast position of the Dedicated Schools Grant (DSG) ‘Schools Budget’ for 2018/19.

Andrew Ward introduced the report which provided an update on the position of the Dedicated Schools Grant (DSG) Schools Budget for 2018/19. He highlighted that the overall forecast as at second quarter of the 2018/19 financial year was that the Schools Budget would break even in 2018/19. There had been a rising pressure on the High Needs provision due to an increase in demand, leading to an overspend of least £2 million on the block. However, underspends on the pupil growth budget were forecast to compensate this overspend, but this would not be confirmed until after December 2018 when final calculations would be made. 

Mr Ward informed the Forum that the DSG expenditure budget for 2018/19 was £315 million which had been made up by £312 million of grant income and £3 million of reserves that had been released in consultation with Schools Forum. He explained that one of the reasons for the underspend in the Early Years block in 2017/18 was due to lower take up of the universal 3 and 4 year old entitlement. In addition, there had been changes to the national system of entitlement which had reduced take up in the autumn term. Although, the Early Years Block remained the most self-contained of the four blocks, with 95% of income passed onto providers, officers would review the way it was accounted for.

Mr Ward referred to the Central Block of the DSG and reminded members that it funded central services for schools, which included the pension costs for former school employees. In relation to the Schools Block, it was noted that there was little volatility in the net position of the funds allocated to schools (section 7 of the report, pages 14 and 15 of the Agenda pack). However, there could be variations if changes were made to the National Non-Domestic Rates following any revaluations.

The Forum heard that the main risk to the DSG Schools Budget was the larger increase in demand for high needs provision – for example, the number of Education Health and Care Plans (EHCPs) was approximately 2,200 compared to 1,650 four years ago, which represented an annual increase of 8% .Furthermore, there had been an increase in the number of post-16 placements and demand for provision for 19-25 year olds was also growing.

Mr Ward summarised the key points presented in the paper, pointing out that it was necessary to monitor the position and officers would continue working on securing the best value for money on the DSG. The High Needs Task Group continued to meet and discuss ways to set a balanced budget and the outcome of discussions would be reported back to the Schools Forum. 

Members reported that the Early Years Task Group had not met since the previous meeting of the Schools Forum in June 2018 and Brian Grady said that he would review this. In response to concerns that the DSG budget would not be able to meet the teacher pay rise announced in July 2018, Mr Ward said the topic would be covered under Agenda Item 9 at the present meeting – 2019/20 Funding Announcements and Schools’ Budget Position. 

RESOLVED that:

(i)            The contents of the Dedicated Schools Grant Budget Forecast - 2018/19 report, be noted;

(ii)          The requirement for an Early Years Task Group meeting would be considered before the next meeting of the Schools Forum on 12 December 2018; and

(iii)         Updates on the Dedicated Schools Grant Schools budget forecast 2018/19 be provided at every meeting of the Schools Forum