Agenda item

(a)(i) Minutes of the Schools Finance Group (SFG), 13 September 2023, attached; and

(a)(ii) Minutes of the Schools Finance Group (SFG), 6 November 2023*, attached. 

Also available at

Schools Finance Group (SFG) – Education and Families (devon.gov.uk)

*see also separate AWPU agenda item below arising from SFG; and

(b) Report of the Director of Children and Young People’s Futures and

Director of Finance and Public Value (DEF/23/13) attached.

DISCUSSION:

(a) Schools Finance Group Minutes - 13 September and 6 November 2023     

The Forum considered the above minutes, including the respective minutes relating to the Finance Update Report at (b).

Also available at

Schools Finance Group (SFG) – Education and Families (devon.gov.uk)

DECISION:

that the minutes of the Schools Finance Group (SFG), 13 September and

6 November 2023 be received.

(b) Finance Update Report

The Forum considered the report of the Director of Children and Young People’s Futures and Director of Finance and Public Value (DEF/23/13).

The report (DEF/23/13) covered:-

-Dedicated Schools Grant (DSG) and Schools Funding Month 6 Report 2023/24;

-Schools;

-DSG Management Plan;

-High Needs;

-Management Actions; and

-Risks.

The summary indicated that:- 

-Month 6 outturn forecast for 2023/24 saw a significant overspend in the overall Dedicated Schools Grant (DSG) of £38.1 million which was associated with the continued demand on High Needs after taking into account management actions savings of £12.2 million identified in the current Safety Valve Intervention Management Plan;

-The management action of £20.2 million reflected the budgeted savings expected to be delivered in 2023/24 as per the current Safety Valve submission to the DfE.  As at month 6, £9.8 million had been identified as being at risk of not being delivered due to either delays in projects not commencing or no longer happening;

-An additional £2 million savings within the independent sector had been identified from 3-5 year placements ending and Adult Social Care contribution;

-The DSG Adjustment Account, which showed the cumulative DSG Deficit was projected to rise to £162.5 million by the end of 2023/24;

-A high level of requests continued for Education, Health and Care Plan (EHCP) referrals, 1,648 requests had been received for the period January 2023 to September 2023 compared to 1,540 for the same period in 2022. However the number of requests being refused at 6 weeks and 16 weeks had increased since 2022 for the same period. Support from schools was required to take action to mitigate the growing demand;

-The increasing DSG deficit could have a considerable impact on future education budgets within the DSG as well as impacting on the financial sustainability for Devon County Council; and

-An interim SEND Improvement Director from the DfE was working with Devon to drive forward the SEND Improvement Plan and the Safety Valve. Programme Management support had also been identified within the LA to help both support and deliver the SEND Improvement Plan and the Safety Valve Plan to manage the High Needs Block deficit.

In response to questions, Officers advised that from their ongoing work with DfE advisers, the DfE needed to see an evidenced, robust and realistically deliverable Safety Valve Plan before Devon was accepted onto its programme.  It was anticipated that a Plan to meet the DfE’s requirements could be achieved by the 15 December 2023 submission date. 

Whilst DEF was being asked to note the update, Members remained concerned about the ongoing difficult financial situation as above.

DECISION:

that the month 6 DSG monitoring position be noted.