Minutes:
Consideration was given to the report presented by Mark Chambers, Assistant Director, Children and Young People’s Services which summarised the financial position in 2017/18 of the High Needs Block of the Dedicated Schools Grant (DSG). The recent growth in volume through increased demand for special educational places and the impact on cost was outlined and compared against previous years.
Options to bring the High Needs Budget to a sustainable level were to be explored further in light of the changes to the High Needs Fair Funding Formula, National Schools Funding Formula and the Council’s SEND Sufficiency Strategy.
The Forum noted that Rotherham faced considerable pressure in continuing to meet the needs of pupils with Special Educational Needs and Disabilities (SEND, due to there being an increase in the numbers of pupils with an Education, Health and Care Plan (EHCP) or its predecessor, the Statement of Special Educational Needs (SEN) and as a result of the in-borough special school provision currently being over-subscribed.
Further information was provided on additional funding requirements for children with more complex needs and the growing demand on the High Needs Budget, which combined with the in-year deficit, was predicted to increase. The High Needs Budget allocation had increased year on year but, partly due to Rotherham’s low funding baseline compared to neighbouring boroughs and nationally, the budget uplifts have not been sufficient to match the acceleration in demand and the increase in the cost of provision.
Details of the forecast cumulative deficit were provided, which when added to the previous years added to the in-year forecast was £9.997m.
The Forum took account of the number of EHCPs (or SEN) in Rotherham which was currently at 1,776 as of 10th November, 2017. A deficit on the high needs budget had been evident for the last three years in spite of increases to the annual allocation. Over the same period, the number of children and young people with EHCPs or SEN Statements had dramatically increased. The high needs budget had increased, through annual uplifts and transfers of funding from the Schools Block, however this had not been sufficient to keep up with demand for specialist and bespoke education places.
The immediate aim needed to be for a re-basing of the high needs budget and the implementation of the SEND Sufficiency Strategy, which had been approved for consultation by the Cabinet in September 2017 to reduce the average cost per plan to a level that was sustainable over the long term and to increase the number of places in special schools.
The Forum acknowledged the difficulties and considered the various options set out in the report and referred to a number of discussions that had taken place previously regarding proposals to reduce and clear the deficit, not previously supported by schools. Whether or not to approach the DfE for further funding was an option for consideration, but there was a clear need for additional clarity.
On this basis it was suggested that the Forum note the expenditure and growth of the Education and Health Care Plans, but look again to a joint meeting of a Finance Sub-Committee and a High Needs Sub-Committee where any options to assist with reducing the deficit, whilst taking into account actions already in hand, could then be formulated into a report for consideration in due course.
Agreed:- (1) That the in-year High Needs forecast of expenditure as per October 2017 be noted.
(2) That the growth in demand for Education and Health Care Plans in Rotherham be noted.
(3) That options be consider to provide future budget sustainability and a further report be submitted to a joint meeting of High Needs and Finance Sub-Committee scheduled for 29th November, 2017.