Agenda item

To receive an update on high level financial performance for the service and

scrutinise how this meets organisational priorities.

Josephine Lyseight (Head of Finance (People)) and Andrew Osei, the finance lead for Children and Young People, reported on the current financial position for Children’s Services at the end of Quarter 1.  There was currently a projected overspend of £4.7 million which mainly arose from Children’s Social Care and from Prevention and Early Intervention.

Referral rates in Children’s Social Care continued to be high and were 24% up.  In addition, the percentage of families in acute stress had increased from 18% to 30%.  Work was taking place to manage these pressures.  In respect of Early Help and Prevention, there had been an increase in the number of EHC Plans and this had increased demand for SEND transport.   There was also an overspend in Children’s Centres of £0.2 million, which was mainly due to the increase in the cost of living.

In respect of safeguarding and social care, the number of looked after children (LAC) was still high but had recently reduced.  The number of secure placements had gone down but unit costs had increased.  This was being addressed through better procurement.  In Early Help and Prevention, measures were being taken to manage down the costs of SEND transport.  This was being done through a range of actions, including improved procurement, travel training and route mapping.

Mr Osei reported that all the savings projected for Quarter 1 had been achieved.  The outturn position for the Dedicated Schools Grant (DSG) had shown a £3.5 million overspend, which had left an accumulated DSG overspend of £20.5 million.  £4.6 million of last years DSG overspend had come from the high needs block.  There was currently a projected overspend for the current year of £3.8 million, all of which came from the High Needs Block.  This would bring the cumulative deficit up to £24.3 million.   The reason for the pressures on the High Needs Block was the increasing number of children with EHC Plans, which included 25% of looked after children (LAC). The DSG was ring fenced so could not become mixed in with the Council’s budget. 95% of capital projects were currently on track, with £1.8 million slippage anticipated.  

In answer to a question regarding which electoral wards were seeing the largest increases in safeguarding referrals and EHC Plans, Ann Graham (Director of Children’s Services) reported that this information would be included in future performance reports to the Panel.   In answer to a question regarding the levels of funding for schools within individual EHC plans, she reported that it was difficult to make comparisons as they were unique for each child. Jackie Difolco, Assistant Director for Early Help and Prevention, reported that there was a banding framework that had been shared with the previous Panel.  It was agreed that this would be re-circulated.  The service were  working in partnership with an organisation called ISOS who had been commissioned to review the current bandings model with stakeholders and involving schools and parents.  The current banding model provided a fixed rate, although the range of delivery varied according to the needs of the child and their EHC plan.

In response to a question regarding the deficit within the High Needs Block, Ms Graham reported that the projected deficit had reduced from last year.  Extensive work was taking place to address the issue, including the government’s Safety Valve programme.  She would report back in due course on the progress of this.  It was a national issue that had arisen from the 2014 Children and Families Act. 

The Panel commented that many schools had budgetary deficits. The focus was currently on managing demand of EHC Plans but it was important that preventative work took place to ensure earlier support was in place to prevent needs escalating. It was noted that a report on the Council’s participation in the Safety Valve programme would be being considered by the Council’s Cabinet on 13 September.  It was agreed that the report would be circulated to Panel Members and that a report on the issues would also be brought to a future meeting of the Panel.

AGREED:

1.    That the banding framework for funding for schools in support of EHC Plans be circulated to the Panel;

2.    That a report be made to a future meeting of the Panel on the Council’s participation in the government’s Safety Valve programme and that the report to the Cabinet meeting of 13 September on this matter be circulated to Panel Members; and

3.    That a report be submitted to a future meeting of the panel on preventative work and early intervention in respect of children with SEND.