Agenda item

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 costs.

·             The budget aimed to achieve an in-year balance between expenditure and income and did not reduce the forecast deficit that would be brought forward from 2023/24, which equated to c£14.6m.

The Chair thanked Folake Olufeko for her report and asked the Forum if they had any questions in relation to the information provided.  As no further questions or comments were raised the Forum RESOLVED to note the Dedicated Schools Grant High Needs Block Budget for adoption in 2024 – 25.