Agenda item

To update the Forum on the current cost pressures being faced in respect of High Needs Pupils, the actions proposed to manage cost increases and to seek agreement that recommendations are made to the Executive Member for Children, Young People and Learning in respect of budget changes to be made for 2015-16 that will result in a balanced budget.

The Forum received a report updating members on the current cost pressures being faced in respect of High Needs Pupils, the actions proposed to manage cost increases and which sought agreement that recommendations be made to the Executive in respect of budget changes to be made for 2015-16.

The Council had a new statutory duty to provide education for children and young people aged 0-25 years and to ensure that student needs were being met effectively. However, insufficient funds for this new duty had been allocated to local authorities by the Education Funding Agency (EFA) and relevant budgets were therefore forecast to over spend by £1.557m in 2014-15, rising to £2.168m in 2015-16 and then £2.794m in 2017-18, if no actions were taken.

The main factor influencing the over spending related to higher numbers of post-16 students as a result of increasing entitlement to 25 years. The impact was also being felt in other local authorities with Buckinghamshire County Council proposing a legal challenge to the decision making process of the EFA.

In response to Forum members’ questions, the following points were made:

• Discussions had been held with local authority partners who had advised that they were not duplicating the new provisions proposed by BFC through the development of SEN Units. In the first instance, the aim was for the high needs provision to be filled by Bracknell Forest residents but if there were vacancies, then young people outside of Bracknell would be considered.
• There was a tight timescale for 10 places to be available at Blue Mountain from September 2017 but a contractor would be engaged and it was on track at present.
• Five students had expressed an interest in the ASD Unit at Eastern Road who would otherwise have been placed out of the area at greater cost and disruption. The resource was not for young people whose needs could be met in a mainstream school, but for young people with high specialist needs.
• Martin Gocke suggested that some pupils at Kennel Lane School could have been placed in mainstream schools and queried whether mainstream schools could be facilitated to be able to meet higher needs. This suggestion would be considered further.
• It was a significant challenge to reduce cost pressures but officers were confident this could be done over time, if the identified improvement actions were put into place.
• Officers in the SEN Team were actively providing advice and support to the college in order for there to be appropriate SEN provision for post-16 pupils.
• The EFA were fully aware of the financial difficulties being experienced by local authorities but whether their funding formula would be changed was not known. Representations were being made that the current funding formula was putting a burden on local authorities.

RESOLVED that the Forum NOTED:

1. The latest forecast over spending in 2014-15 for SEN related budgets at £1.557m, an increase of £0.464m compared to that expected in August (paragraphs 5.9 and 5.10);

2. The main factor contributing to the increased costs remains unchanged and relates to additional numbers of post 16 students (paragraph 5.9);

3. The Education Funding Agency has allocated insufficient funding to LAs to meet their new responsibilities and Buckinghamshire County Council is in the process of commencing a legal challenge (paragraphs 5.11 and 5.54);

4. The expected on-going trend indicates future cost increases on external SEN places from £5.966m in 2014-15 to £7.460m in 2017-18 if no action is taken (paragraph 5.23 and Annex 2);

5. The funding strategy proposed to manage down future cost pressures (paragraphs 5.27 to 5.48);

6. That the DfE has commenced a review of High Needs Block DSG allocations and that future changes to funding may result (paragraph 5.55);

In response to the Council’s budget proposals for 2015-16, RESOLVED that the Forum RECOMMENDED to the Executive:

7. That in order to achieve the significant cost reductions required on SEN budgets, £0.06m of new funding be provided by the Council to finance the additional staffing resources required in the SEN Team (paragraph 5.49);

8. That to ensure a net nil cost increase in Council spend, that the Schools Budget finances an additional £0.06m of educational fee costs in respect of Looked After Children (paragraph 5.50);

RESOLVED that the Forum RECOMMENDED that the Executive AGREE the following:

9. The release of the £0.490m of funds from the SEN Resource Units Reserve from January 2015 to finance start-up costs at Rise@Garth (paragraph 5.32);

10. The medium term budget plan for Rise@Garth, subject to annual review (paragraph 5.33 and Annex 4).