Agenda item

Further to Minute No. 23 of 28^th July, 2022, Nathan Heath (Assistant Director CYPS) supported by Neil Hardwick (Head of Finance CYPS), presented an update report outlining the current and projected overspend on the Dedicated Schools Grant (DSG) and the recovery plans in place to enable Rotherham to operate within its annual allocation and reduce the deficit over future years. The report also outlined the national picture on the High Needs Block as part of the overall Dedicated Schools Grant and the additional funding the Government was investing in education as part of its spending review.

During recent years, Rotherham had faced growing pressure on the High Needs Budget resulting in year on year deficits of circa £5m.  Following implementation of the DSG Management Plan (which included continuing to transfer monies from the Schools Block), the annual pressures had significantly reduced with an in-year DSG deficit of £1.37m in 2020/21.  This was further reduced to a £0.11m deficit in 2021/22 and an overall deficit of £21.26m (before taking account of Safety Valve funding).

Following significant negotiations between the Council and the Department for Education (DfE), a Safety Valve Intervention Agreement was agreed to support Rotherham to address its long term issues liked to High Needs funding deficit.  Ongoing monitoring had taken place across the implementation of Rotherham’s Safety Valve Agreement with quarterly meetings held between the DfE and the Authority to both support delivery and hold accountability of the Agreement as well as submission of a financial and narrative return. 

Rotherham remained on track to meet all requirements of the Agreement at the end of the 2022/23 financial year.  The DSG had moved from a deficit position of £12.84m at the end of 2021/22 to a deficit of £5.93m at the end of 2022/23, a reduction of £6.91m with £6m from Safety Valve funding and £910,000 from an in-year saving.

Discussion ensued with the following issues raised/clarified:-

-      Some of the pressures were external e.g. cost of living, pay awards etc. which had an impact and were subject to the DfE reflecting such and awarding appropriate funding uplifts.

-      The aim was to develop local provision in an attempt to manage the demands and cost of the provision currently provided in order to achieve better value for money.  However, the SEND population was growing year on year

-      The SEND Sufficiency Phase 4 delivery of the SEND Resource base education provisions in mainstream schools was on track for delivery.  SEN resource bases were provisions attached to mainstream schools providing specialist therapeutic input and support for pupils with a specific SEND need

-      There were distinct pressures for special schools including the availability of staff which was a specific challenge.  The specialism of provision against demand and growth did not just sit in the Rotherham centric; South Yorkshire and the Humber, to some extent, provided some challenge as there were a lot of children from other South Yorkshire local authorities placed in Rotherham schools

-      There was confidence in the Strategy going forward but mindful that there were a number of variable factors as stated above

-      Prior to Rotherham entering into the High Needs Safety Valve, there was a very clear strategic plan set against re-forecasting profile towards the funding that supported mainstream inclusion and less around incremental increase in specialist provision.  The 9 actions in the DSG Management Plan had been worked through in discussion with the DfE and had generated the strategic intent.  It had been superseded in some ways by the Government’s response to the SEN Green Paper, however, there was nothing that was out of sync with Rotherham’s plan

-      There was strong buy-in from primary schools for inclusion.  Where a child was at risk of exclusion, an Inclusion Panel would meet made up of Head Teachers and multi-agency professionals with the School concerned presenting the information.  There were no parent/carers included but were fully consulted

Resolved:-   (1)  That the actions being taken to manage the Dedicated School Grant deficit in Rotherham be noted.

(2)  That the additional funding allocated to Rotherham through the Department for Education’s Safety Valve Programme be noted.