Agenda item

This report gives an update on the Council’s plans to manage the Dedicated Schools Grant (DSG) deficit position and progress being made in relation to the Safety Valve.

This report also forms part of a series of risk management update reports to the Audit Committee to give it assurance on the system of risk management. This specific risk area sits on the Council’s Corporate Risk Register and was highlighted as a significant issue on the Council’s Annual Governance Statement and as significant on the External Auditor’s VFM report in 2024.

The Director of Children's Services & Education introduced the report to the Committee and highlighted the following points.

·  The report forms part of a series of risk management update reports to the Audit Committee to give it assurance on the system of risk management.

·  Since 2019/20, the Council has exceeded the allocated funding, resulting in a deficit primarily within the high needs block, which supports services for individuals with special educational needs and disabilities (SEND).

·  In 2022/23, the Council successfully joined the SV program, with an agreed recovery plan and ministerial approval. B&NES secured £19.22m, receiving £7.68m in March 2023. However, due to slippage, the agreement with the DfE is under review, grant payments have been suspended pending a revised agreement. In the 2023-24 financial year, the total paid under the agreement was £0.55m.

·  The Council was put into an Enhanced Monitoring pool, which meant it has received additional support from 3 x DfE appointed advisers. The Service also appointed ISOS Partners to review the original submitted plans, and requested, and was granted dedicated support from the Council’s Business Change Hub. External expertise was also granted to refine the financial modelling required. The programme is now called the SEND Collaboration for BaNES.

·  Updated plans for the SEND Collaboration for BaNES were submitted to DfE on time on 24th May 2024. Detailed feedback was received from DfE advisers on 27^th June 2024.

·  Following a review of the feedback, a date was agreed with DfE to re-submit the plans, taking into account the comments from the advisers. This was agreed as 1st October and the plans were submitted again on the 30th September 2024. No further feedback on the plans has been provided by DfE and the Council is still awaiting a formal DfE response.

·  Internal Audit reviewed the governance and programme management framework for the SEND Collaboration in Q2 and 3 2024, and the report in September 2024 judged there to be substantial assurance.

·  Over the past 5 years the growth in EHCPs and requests for EHCPs has grown significantly. The numbers of EHCP requests have increased by 125% over the 5-year period whilst the numbers of EHCPs granted have increased by 75%.

·  The SEND Collaboration for BaNES programme has robust governance in place. The Executive Group meets fortnightly to review progress, and reports regularly to ELT and to the Business Change Steering Group.

·  A fortnightly briefing is held with the lead member for Children’s Services and the Executive Group is responsible for agreeing the updates to the Lead Member, the Children, Adults, Health and Wellbeing Policy Development and Scrutiny Panel, Informal Cabinet and Cabinet.

·  Discussions are ongoing with the DfE to ascertain:

o  Whether / when the plans may be signed by the DfE and remaining tranches of funding received.

o  When a clear decision will be made for the development of the Sulis AP and Green Ways SEN Academies.

The Director of Children’s Services & Education said that this was both a regional and national challenge and that the Association of Directors of Children's Services has highlighted the pressure that this is bringing to their role and the functions within their respective Local Authorities.

The Executive Director for Operations added that as well as the current additional support detailed within the report further funding is being sought for work associated with SEND in the draft budget for 2025/26.

The Chair commented that it was clear that this was a national issue and noted it had also been highlighted by External Audit.

John Barker asked for confirmation if the slippage was due to a shortfall in expertise or an increase in demand.

The Director of Children’s Services & Education replied that there had been an increase in demand from their initial projections. She added that the SEND reforms that were introduced in 2017 changed the age range from those children and young people covered by an EHCP from 6 – 16 years old to 0 – 25 years old.

John Barker asked if the growth in demand was attributable to the upper age group.

The Director of Children’s Services & Education replied that it was not particularly as there can be a need for services / support from a young age. She added that the Council were seeking to provide Early Help support outside of their statutory framework.

Councillor Toby Simon commented that it was clear that the funding supplied is not sufficient for the duties that the Council are being asked to carry out. He asked what the impact of this was on the children and young people within B&NES.

The Director of Children’s Services & Education replied that the issue of timeliness remains an area that is seeking to be improved. She said that the Council issues around 29% of their EHCP’s within the 20 week guideline and were looking to increase this to 50% if possible.

Councillor Malcolm Treby referred to the risk in delays to the capital programme and asked for confirmation that the mitigated score of 9 was sufficient.

The Director of Children’s Services replied that she was satisfied that the mitigated score was sufficient to the identified risk.

The Chair referred to the issue of Reforming the Children’s Social Care System and asked if information could be provided regarding plans for the Council to set up any Children’s Homes.

The Director of Children’s Services replied that there was not sufficient Foster Care provision within B&NES and was aware that the Association of Directors of Children's Services had lobbied nationally regarding profiteering of suppliers of such homes.

The Executive Director for Operations added that the option of the Council having its own residential provision for children and young people was being explored.

Councillor Sam Ross commented that it should be noted that recruitment and retention of staff within the service area appears to remain an issue alongside ensuring that a competitive salary is in place.

The Audit Committee RESOLVED to note the report.