Agenda item

To seek comments from the Schools Forum on proposals from the Council for the 2014-15 Early Years and High Needs Block elements of the Schools Budget.

The views of the Schools Forum were sought on proposals from the Council for the 2014-15 Early Years and High Needs Block elements of the Schools Budget. There were also a small number of decisions for the Forum to consider in line with the statutory funding framework.

For the Early Years Block, a revised calculation of forecast DSG income was now available, together with updated cost estimates for payments to providers for the free entitlement for early years education and childcare and the roll out of provision to the most deprived 2 year olds. Creating sufficient places to meet forecast demand for 2 year olds was identified as a high priority, and proposals had been made here also, to use unallocated 2014-15 funding as well as re-investing the forecast under spending from 2013-14 into this area. In line with the funding settlement from the DfE, rates paid to providers of the free entitlement would remain unchanged from those paid in 2013-14.

In respect of the High Needs Block, which was recognised as the most complex and volatile area of the budget build, the DfE had still to confirm final funding allocations to Local Authorities, and therefore the Council was not in a position to present budget recommendations which would now need to be presented later, following receipt of reliable data. The report therefore presented an update on current forecasts.

A recalculation of potential income from the DfE had been undertaken, and this indicated a small reduction in funding from 2013-14 of £0.011m. Looking at forecast costs, these were now expected to increase by £0.250m which was a further £0.050m increase on the amount expected in January.

Should the actual income from the DfE indicate a potential over spend in 2014-15, proposals would be presented to the Forum on how this could be managed, which could include making in-year savings, drawing down from the estimated £0.5m surplus balance on the Schools Budget, or a combination of both.

The Forum also considered a proposal from the Local Authority to update criteria to be used to allocate the SEN Contingency to schools to reflect characteristics of pupils currently in schools. Members of the Forum requested that further options for allocation be considered and presented to the next meeting of the Forum, including introducing thresholds based on actual numbers of pupils as well as percentage of pupils on roll at a school.

RESOLVED that the Forum AGREED:

That the Executive Member make the following decisions:

For the 2014-15 Early Years Block funded budgets:

1. that funding rates for the free entitlement to early years education and childcare for 2, 3 and 4 year olds remain unchanged from those paid in the 2013-14 financial year;
2. that a new hourly funding rate supplement of £9.00 be paid to providers taking 2 year olds with severe or complex needs;
3. providers of the free entitlement to early years education and childcare for 2 year olds continue to be funded on the basis of agreed number of places, rather than on actual participation;
4. the total initial budget was set at £5.383m, it incorporated the changes set out in paragraph 5.12, and relevant budgets were therefore updated to those set out in Annex 2.

For the 2013-14 forecast under spending on Early Years Block funded budgets:

5. That subject to there being a sufficient under spending on the overall Schools Budget, that any net under spending in 2013-14 on the following budgets were carried forward into 2014-15 as follows:

a.      trajectory funding: to support the development of provisions for 2 year olds, currently estimated at £0.118m;

b.      payments to providers for the free entitlement to education and childcare for 2, 3 and 4 year olds: to support the development of a sufficient number of places for eligible 2 year olds, currently estimated at £0.141m.

For the 2014-15 High Needs Block funded budgets:

That no budget decisions were made until the level of government funding was more certain.

6. In its role of statutory decision maker, that there were appropriate arrangements in place for:

c.      early years provision,

d.      the education of pupils with SEN, and

e.      the use of pupil referral units and the education of children otherwise than at school.

7. Revised eligibility criteria for allocating funds to schools from the SEN Contingency (paragraph 5.39), would be considered again at the next meeting of the Forum.