Agenda item

Report of the Director of Children’s Services. To be introduced by the Cabinet Member for Children, Schools, and Families.

Cabinet approval is required to participate in the national Safety Valve Programme which sets out proposals to achieve an in year balanced budget within the High Needs Block of the Dedicated Schools Grant.

Please be advised that the Chair of Overview and Scrutiny has agreed that the call-in procedure shall not apply to this  decision. This is because the decision is urgent and any delay in implementation caused by the call-in procedure would seriously prejudice the Council's or the public's interests due to the fact that  continued growth in High Needs expenditure remains unmitigated, the cumulative deficit is currently estimated at £83m by 27/28. Therefore, this is  a critical financial risk to the Council;  and entry into the Safety Valve programme is the best option to mitigate this risk.  Haringey will be unable to complete a submission to the Department for Education within their deadline if the call-in period is not waivered. This decision will ensure that the deadline is met. Accordingly, the Chair of Overview and Scrutiny Committee has agreed that the decision is both reasonable in all circumstances and that it should be treated as a matter of urgency. This is in accordance with Part 4, Section H, and Paragraph 18 (a) and (b) of the Council Constitution.

The Cabinet Member for Children, Schools and Families introduced the report which noted that Cabinet approval was required to participate in the national Safety Valve Programme which set out proposals to achieve an in year balanced budget within the High Needs Block of the Dedicated Schools Grant (DSG).

It was noted that the Council had been invited by the Department for Education (DfE) to make an application to participate in the 2022/23 Safety Valve Programme which was designed to assist local authorities in reducing overspends in their High Needs Block expenditure for Special Educational Needs and Disabilities (SEND). It was explained that Haringey was predicted to have a significant SEND overspend by 2027/28 which, if unaddressed, could seriously impact council finances. It was highlighted that the government offer, whereby  High Needs Block  deficits could be eliminated, was subject to the Council developing a series of detailed plans for systemic change and service transformation.

The Cabinet Member explained that the service was already engaged in a process of wider strategic transformation of SEND Services. This was underpinned by a written Statement of Action and was in partnership with key stakeholders in schools, the wider education health and care sectors, children, young people, and their families. It was added that key strands for the Council’s approach were set out in the report and provided the basis for a SEND service which aimed to intervene early, to provide the support required, and to provide services locally in the borough.

In response to questions from Cabinet Members, the following information was noted:

-       That the Safety Valve Programme would expand on the existing written Statement of Action and SEND Strategy. It was anticipated that the Safety Valve Programme would bring additional pace to deliver the ongoing systemic changes that were already taking place within the service.

-       Overspends in the High Needs Block were not uncommon and that this was a national issue. It was explained that, following a reform in 2014, the age range for SEND had been extended but without a corresponding increase in funding.

-       Haringey had been invited to participate in the programme by the DfE but that there had been a previous wave of invites to other councils.

-       The Cabinet Member was confident that young people with SEND would not be disadvantaged by the programme. It was stated that this provided an opportunity to review and improve current practice, in addition to the ongoing work to improve how SEND services were delivered.

In response to questions from Cllr Cawley-Harrison, the following information was noted:

-       That the DSG was currently ringfenced and the deficit could not be paid by the Council’s General Fund. It was explained that, under the programme, authorities whose plans demonstrated lasting sustainability would receive funding instalments to eliminate their  deficits. It was considered that this was the best option to eliminate or minimise the deficit position in the future. It was added that some improvements made in the service over the last year demonstrated that processes could be improved.

-       The programme, as well as the general improvements within the service, did not aim to reduce or cut  services but looked to redistribute funding, adapt processes, and have more in-borough provision. It was noted that, as a result of the work undertaken so far, there had been a reduction in complaints and an improvement in outcomes.

RESOLVED

1.    To approve the application based on the indicative workstreams and projects outlined in this report and further note that the indicative workstreams and projects are not yet agreed by DfE.

2.    To delegate authority to the Director of Children’s Services and Director of Finance, after consultation with the Cabinet Member for Children, Schools, and Families and the Cabinet Member for Finance and Local Investment, to make the initial application to the Department for Education (DfE) to enter the “Safety Valve” Intervention programme by 15 September 2022.

3.    To delegate to the Director of Children’s Services and Director of Finance, after consultation with the Cabinet Member for Children, Schools, and Families and the Cabinet Member for Finance and Local Investment, to make final changes to the proposals following feedback from the DfE in advance of the final submission on the 6 October 2022.

4.    To approve, that, as part of the involvement in the ‘Safety Valve’ intervention programme, a request for capital will be submitted to the DfE, by 10 October 2022, to develop SEND provision in the Borough to aid delivery of the programme which will be incorporated into the strategic education master sites programme.

5.    To note that the Quarter 1 Corporate Monitoring Report addresses the Safety Valve project funding within the General Fund for the current year, and that the ongoing annual cost of this project will be taken into account in the preparation of the next future years’ Medium Term Financial Strategy.

Reasons for decision

As part of the Department of Education (DfE) work to address long term challenges in High Needs funding within the Dedicated Schools Grant (DSG), a number of identified local authorities, including Haringey, have been invited to have a financial agreement known as a ‘Safety Valve.’

The agreement will require Haringey to achieve an in year balanced budget, currently £4.6m in deficit, within five years. If achieved, the DfE will provide assistance with funds to address the cumulative deficit, currently £21.5m, subject to Ministerial approval. If continued growth in High Needs expenditure remains unmitigated, the cumulative deficit is currently estimated at £83m by 27/28 and is therefore a critical financial risk to the Council; entry into the Safety Valve programme is the best option to mitigate this risk.

The Safety Valve programme is part of the wider strategic transformation of SEND Services in Haringey with our key stakeholders within education, health, care sectors, children, young people, and their families. As part of this transformation, resources will be prioritised for children and young people with SEND which will improve overall outcomes by having a clear focus on early intervention, service improvement, reduce overall demand for EHCP’s and financial pressure on the High Needs Block.

This item has been properly notified on the Forward Plan with the required 28-day notice period as set out in Part Four, Section D, Rule 13 of the constitution and complies with the 5-day notice period for agenda publication. However, the initial application to the DfE must be made by 15 September 2022. Cabinet is due to consider the item at its meeting on 13 September 2022 and this would not leave sufficient time for the ordinary call-in period. This report could not have been considered earlier due to the short timescales provided to complete the substantial work required to inform the proposals alongside initial consultation with key stakeholders. It is therefore proposed that the call-in procedure shall not apply to this decision in order to submit the application by the deadline of 15 September 2022. This would be subject to the Cabinet decision on 13 September 2022.

Given the above, it is not practicable to comply with the call-in period requirement. The Chair of Overview and Scrutiny has agreed that the call-in procedure shall not apply to this urgent decision. This is because the decision is urgent and any delay in implementation caused by the call-in procedure would seriously prejudice the Council's or the public's interests due to the fact that Haringey will be unable to complete a submission to the Department for Education within their deadline. This decision will ensure that the deadline is met. Accordingly, the Chair of Overview and Scrutiny Committee has agreed that the decision is both reasonable in all circumstances and that it should be treated as a matter of urgency. This is in accordance with Part 4, Section H, and Paragraph 18 (a) and (b) of the Council Constitution.

Alternative options considered

The Council has previously produced a DSG Management Plan, coproduced with various stakeholders, with detailed actions in place to manage the deficit. The DSG management plan is underpinned by the High Needs Block recovery plan which is led by the Local Authority SEND service. This plan sets out a number of projects which are already in progress and subject to scrutiny at the DSG Steering Group chaired by the Director of Children’s Services. Monitoring of progress is reported to the Schools Forum and SEND Executive (which has parent and carer representation) on a quarterly basis, this is also published on our SEND local offer and referenced within our SEND newsletter. Parents and carers are also represented on development sub groups delivering against a number of priorities that inform this work eg) Preparation for Adulthood, EHCP/Annual Review processes, Co-production and Health.

This plan has been further developed since the meeting with DfE and it is this revised plan which forms the basis of our initial proposal. The plan is a live document which we will continue to share with the DFE as the proposal further develops.

It is in the best interests of the Council to work towards a mutually agreed Safety Valve agreement as the ring fencing of the High Needs deficit may be removed, at which point the full deficit would have to be addressed in full in the Councils MTFS.

Please be advised that the Chair of Overview and Scrutiny has agreed that the call-in procedure shall not apply to this  decision. This is because the decision is urgent and any delay in implementation caused by the call-in procedure would seriously prejudice the Council's or the public's interests due to the fact that  continued growth in High Needs expenditure remains unmitigated, the cumulative deficit is currently estimated at £83m by 27/28. Therefore, this is  a critical financial risk to the Council;  and entry into the Safety Valve programme is the best option to mitigate this risk.  Haringey will be unable to complete a submission to the Department for Education within their deadline if the call-in period is not waivered. This decision will ensure that the deadline is met. Accordingly, the Chair of Overview and Scrutiny Committee has agreed that the decision is both reasonable in all circumstances and that it should be treated as a matter of urgency. This is in accordance with Part 4, Section H, and Paragraph 18 (a) and (b) of the Council Constitution.