Agenda item

To update the Schools Forum on the refreshed High Needs Block (HNB) Deficit Management plan.

Olufunke Adediran, Head of Finance at Brent Council, introduced the report providing the Schools Forum with the updated High Needs Block (HNB) Deficit Management Plan.

The Forum noted the following key points as part of the update provided:

·                The forecast Dedicated Schools Grant (DSG) deficit estimated to year end for 2021/22 was £5.4m which was mainly due to a deficit in the High Needs Block (HNB) and brought the cumulative deficit to £15.9m.

·                The rise in demand for Education, Health and Care Plans (EHCP’s) was the main cost driver in the HNB with an increasing complexity of need and rising cost of out of borough placements, although the Forum noted this reflected a national trend as detailed in Table 1, and section 3.3 of the report.

·                The Forum were informed that Brent’s DSG deficit position was not unique and many local authorities were holding large DSG deficits. As a result of this the DfE were expected to release further guidance as to how deficits should be handled after 2022/23.

·                In addressing the plan to recover the deficit the Forum were advised that it was likely that further changes would be required as a result of the pending SEND Green Paper from the Government, expected in Spring 2022. Any further changes to the plan would be shared with Schools Forum accordingly with the current activity focussed around three key themes on which further detail had been provided within section 4 of the report – Managing demand; Improving sufficiency of places and Financial Management.

·                An indicative summary of cost avoidance arising from the actions identified within the management plan had been detailed within section 4.8 of the report with further details on the costed plan provided within Appendix 1 of the report.  The previous forecast cumulative deficit pressure presented to the Forum had projected a deficit of £18.5m by 2025/26 based on an assumed average growth in income of 7% year on year.  Following guidance from the DfE the Deficit Management Plan had been updated in order to respond to the rate of growth that would inform the future financial model. The revised model incorporated a rate of growth of 13% in 2022/23, 5% in 2023/24 and 3% thereafter which had resulted in an increase in the projected cumulative deficit to approx. £19.3m.

·                The Forum were advised that in recognition of the large deficits multiple local authorities were carrying the DfE would be introducing two schemes to support local authorities in reducing deficits. The “Safety Valve” programme would see the DfE work with those local authorities identified with the highest deficits to support them achieve a financially stable system, involving the provision of an additional £150m.  It was not anticipated that Brent (given the level of deficit) would qualify for support through this programme.  The Forum were informed it was, however, anticipated that Brent would be eligible to receive additional funding and support through the second DfE initiative “Delivering Better Value in SEND”.  This would see the provision of £85m over a period of 3 years to be made available to support a wider group of Local Authorities with smaller DSG deficits. The scheme would provide dedicated support and funding to assist in reforming the High Needs provision.  Further details on the support available were currently awaited with the Forum to be updated when the information was available.

·                In providing further detail on the scheme Sharon Buckby, Head of Inclusion, felt it important to highlight it was not yet clear how Brent would benefit from any funding allocation available through the Delivering Better Value in SEND programme which may, as an alternative to additional funding involve for example the provision of further advice and support in relation to the deficit management plan.  In terms of action already being taken, however, the Forum noted the progress made in reviewing and managing demand for ECHPs based on the wider action within schools to develop alternative capacity to meet the needs of children requiring additional support.  As an example reference was made to use of the SEND Support Fund to support the training of staff across a number of schools in developing their skills to deliver specialised support in relation to Speech and Language, Cognition and Learning, Autistic Spectrum Disorder (ASD) and Social, Emotional and Mental Health needs (SEMH).  This had been supported through the Schools Forum with evidence of the positive impact now taking effect.

In concluding the discussion, the Chair asked the Forum if they had any questions or comments on the report presented. Officers responded to questions as follows:

·                In response to a query as to whether the lower than anticipated number of EHCP’s to date this year may be impacted by assessment timescales the Forum was advised that the need to increase capacity within the assessment service had been recognised.  In terms of EHCP assessments in Brent, these were operating at 54% timeliness compared to a national rate of 50%.  Whilst the assessment process involved a number of service providers funds had been allocated to expand investment and build capacity within the service.  Whilst recognising the issues highlighted as a national issue, confirmation was also provided that the current pressures in terms of capacity had been reflected within the deficit management plan and future forecast of demand.

·                Officers advised that the annual assessment of packages of support for pupils with ECHP’s continued to be reviewed by the SEND team supported by discussion with pupil’s individual schools to ensure the support packages continued to effectively meet their needs.  The Forum was advised this may be an area that the DfE advisers may also consider as part of the Delivering Better Value in SEND programme.

·                Having recognised the national position regarding HNB deficits and additional support due to be provided through the Delivering Better Value in SEND and Safety Valve programmes also felt there was need for the DfE to also consider adapting the structure of High Needs funding in order to address the level of deficits over a longer term basis.

Having recognised the progress being made the Forum RESOLVED to note the refreshed content of the HNB Deficit Management Plan and progress being made in terms of its ongoing delivery.