Agenda item

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

Olufunke Adediran, Head of Finance introduced the report which updated the Forum on the DSG High Needs Block Deficit Management Plan. In presenting the report key points highlighted included:

·             The DSG carried forward a cumulative deficit of £15.1m from 2021/22 as a result of pressures against the High Needs Block (HNB). The 2022/23 forecast position at the end of January carried an in year deficit of £2.8m bringing the cumulative forecast deficit position against the DSG to £18.3m.

·             The Forum was advised that if no action was taken to mitigate the deficit, the deficit could reach £54m by 2026/7, however the 0.5% transfer from the Schools Block coupled with the increased funding from the DfE of 10% in 2023/24, then assuming an 8% increase in 2024/25 and 3% thereafter would support mitigating the deficit and reduce it to £52m.

·             Sharon Buckby, Head of Inclusion, advised the Forum that pressures on the HNB were directly related to the increased demand for Education, Health and Care Plans (EHCP) that had increased significantly over the last 6 years with fluctuations as a result of the pandemic, as illustrated in Section 3.2, Table 1 of the accompanying report.

·             Increased need had been demonstrated across the Early Years, it was felt this could be attributed to the lost opportunities for social and educational exposure for children during the pandemic that had impacted upon specific areas of development, such as speech and language and social communication. In response to this the DBV programme in Brent would be specifically looking at the 0-7 year old cohort preventing the need for EHCP’s or moving to time limited EHCP’s for a third of the cohort.

·             It remained a priority to work closely with SENCO’s and Headteacher’s to gain a greater understanding of how to provide efficient effective early intervention to support improved outcomes for children and young people in Brent.

·             In the challenging financial climate, it was recognised that improvements should be made in progressively using joint resources more effectively with health services and neighbouring boroughs to maximise service delivery for children and young people in Brent.

·             The Forum was advised that the Management Plan would not recover the deficit by 2026/27 and could increase further particularly when considering the impact of possible additional financial pressures if HNB funding did not increase in line with the trend in demand for EHCP’s.

·             The regulations that were in place to carry forward a deficit balance against the DSG had been due to expire in 2022/23, however the statutory override had been extended for a further three years until 2025/26.

The Chair thanked officers for their report and asked Forum members if they had any questions in relation to the information provided. The following key points were discussed:

·             The Forum expressed gratitude for the recent meeting between Headteacher’s and senior leaders at the Council where information on training offers was shared, however the Forum felt it was it was paramount that the Council did not lose sight of how strongly school leaders at the meeting expressed their sense of the high level of pressures felt in schools in relation to finances and resources being stretched to unsustainable levels.

·             Forum members advised of the additional financial pressures on schools when they had to fund resources for children awaiting the outcome of an EHCP, often having to use costly agency staff to ensure pupils awaiting additional funding were supported adequately. It was noted that if an EHCP was subsequently awarded the school were not able to receive backdated funding to recover their costs. In response to the concerns raised the Forum were advised that the Council recognised the difficulties schools faced during the 20 week assessment process for EHCP’s , however the Council were duty bound by  the SEN Code of Practice to follow this timeline to allow time for expert assessments to support the accurate identification of children and young people’s needs. It was hoped that through the support of the enhanced cohesive working on the DBV programme further discussion could take place between the Local Authority and schools to explore different ways of working to improve outcomes whilst being mindful of the budgetary pressures.

·             The Forum highlighted the necessity to protect the budget for central services, key to the EHCP process noting that there had been issues around recruitment and retention for speech and language therapists and Educational Psychologists.

·             Officers advised that with the statutory override, central government allowed local authorities to hold the DSG deficit, as opposed to the deficit being exclusively the Council’s deficit.

·             Officers re-iterated their understanding of the difficulties faced by schools in the current challenging financial climate in relation to the costs that schools were having to cover throughout he EHCP assessment period, however explained that as it was a multi-agency approach the Council were reliant on the efficiency of other agencies to support the improvement of the process of EHCP’s. The Council were committed to continue to look for ways to provide a more efficient and timely service whilst improving outcomes for children and young people.

The Chair thanked officers and the Forum for their contributions to the discussion and the Forum RESOLVED to note the actions in place to manage the High Needs Block Deficit.