Head of Finance (CYPS) and Principal Finance Officer (CYPS) to report.
Recommendations:
1. That the Schools Forum note the outcome(s) of the recent consultation with schools on the proposal for a block funding transfer to the high needs budget.
2. That the Schools Forum approve the council’s proposal to transfer 0.5% of the schools block funding in 2025/26 to the high needs budget to address ongoing cost pressures.
Minutes:
Joshua Amahwe presented a report which focused on Part B of the Schools Funding Formula consultation outcome and specifically the proposed percentage transfer of funding from the schools block to the high needs block of the Dedicated Schools Grant for 2025/26.
It was noted that the pressures indicated on Rotherham’s High Needs budget were reflective of the situation being experienced nationally and were being address primarily through Rotherham’s SEND Sufficiency Strategy. The funding transfer would be used to mitigate costs pressures arising in the high needs block, meet demand challenges and to enable the Safety Valve programme to continue to work towards achieving a balanced position at the end of 2025/26.
The response to the schools consultation regarding the proposed transfer was detailed as follows:
Question 4: Considering the borough as a whole and to ensure support for the most vulnerable children and young people in the borough, do you support the LA’s proposal to transfer 0.5% from the schools’ block to the high needs block?
Consultation Response: 56.5% of the schools that responded to the consultation voted No to the proposal, with 43.5% responses in support of the transfer proposed. |
The rationale for why the transfer of funding was needed was discussed with specific reference made to the following areas:
· Increased cost pressures
· Demand challenges
· Meeting the signed Safety Valve agreement with the DfE, and
· Increased funding by the Government would not address existing cost pressures nor keep pace with future demand within the SEND system.
It was recognised that previous reports to the Forum had highlighted the significant issues facing the high needs budget. There were significant demands within the Rotherham borough due to the increasing numbers of EHC plans within the system, Rotherham were already above average for EHC plans and were seeing an increase in pupil placements within specialist SEN provision.
It was highlighted that even with the increase in funding identified to support local authorities going forward Rotherham would still see a deficit position with its high needs projections as the additional funding would not cover the accumulated deficit and options to mitigate the deficit position were being considered.
It was noted that the modelling undertaken had indicated that the funding transfer proposals would not have a significant adverse impact on individual schools’ core funding. The impact of managing inflationary pressures on school budgets were not expected to be considerably different next year and the government were looking to allocate additional funding to support NI increases. It was also noted that support to maintained schools in financial difficulty would continue to be implemented as planned.
Having considered the outcome of Part B of the consultation the Schools Forum were required to undertake a vote to establish whether the Forum supported the proposal to transfer 0.5% of schools block funding to the high needs budget.
Of the school members eligible to vote on this matter, nine voted in favour of the proposal, one voted against the proposal and there were no abstentions. Therefore, the proposal was agreed.
Resolved:
· The Schools’ Forum notes the outcome(s) of the recent consultation with schools on the proposal for a block funding transfer to the high needs budget and approves the council’s proposal to transfer 0.5% of the schools block funding in 2025/26 to the high needs budget to address ongoing cost pressures.
Supporting documents: