Agenda item

Report of the Chief Officer for Children’s Services (CS/18/41), attached.

(Councillor McInnes attended in accordance with Standing Order 25 (1) and spoke to this item at the invitation of the Committee)

The Committee received the Report of the Chief Officer for Children’s Services (CS/18/41) outlining those areas of specific pressures on budgets, over-spending in the current financial year and on action being taken to address this.  The Report noted the Service was facing unprecedented pressures which had been increasing year on year, with inevitable adverse consequences for children and families.  However, it was a credit to all staff that services continued to improve.

The position faced by Devon was also replicated in other large shire counties that were also disadvantaged in their funding share.

The Report had revealed that Children’s Services were showing a forecast overspend of £9.9 millions at month 6, an increase of £1.2millions from month 4.  This included a forecast overspend in Children’s Social Care of £6.5 millions with Placements continuing as the main budget pressure, with further pressure falling across the Disabled Children’s short breaks, staffing and the Atkinson Secure Children’s Home. 

The overspend within Children’s Social Care looked to be partially offset by remaining management action of £672,000, however there were associated risks and any reverse of the situation was unlikely.

The Report also highlighted expenditure in relation to the Service Improvement Plan and the funding of additional social work resource in the North and South of the County.  Also raised was the lack of provision for children with very complex needs, with residential placement costs for Looked After Children rising from £6.2 million in 2016/17 to £11.7 million in 2018/19.  Similarly, costs in relation to supported accommodation for aged 16+ had increased from £2.7 millions two years ago, to £6.1 millions in 2018/19, an increase of 126%. Overall, the Placements budget was overspent by £4.6 millions.

Children’s Services also absorbed unfunded responsibilities to Unaccompanied Asylum-Seeking Children (UASC) at a cost of £500,000 per year, which was anticipated to grow.

The Report highlighted that the Non - Dedicated Schools Grant element of Education and Learning was forecasting an overspend of £3.2 millions at month 6 due to an exponential increase in the number of children with Education, Health and Care Plans which has not been matched by increased funding and overall increased costs. 

Members discussion points with Officers included:

·         the increased costs of £5.5 millions on Placements for an additional 17 pupils in 2018; the Chief Officer explained that 16% of children accounted for 46% of Placement costs and that a small number of pupils had a large financial impact;

·         the Council was entirely reliant on the private sector for supplying residential care places and there was currently more demand than supply available, thereby increasing overall costs;

·         the Commissioning Team was working collaboratively with the market to ensure sufficient supply; however it was a challenge to grow the capacity available to meet demands;

·         challenges faced by the Atkinson Unit in terms of recruiting qualified staff to be able to increase the number of places available at the unit; and

·         the increased complexities of children and young people, managing the expectations of care and meeting levels of Ofsted requirements, all of which drove up the cost of Placements.