Agenda item

Action

Cathy Burnham presented the report on the Pupil Referral Units budget proposals 2015/16.

Currently there are four funding bands which are based on the pupil’s needs and the staffing ratio requirement. For pupils in the Reintegration Service (RS) primary schools pay 50% of the lowest band for a maximum of 12 weeks and secondary schools pay 100% of the lowest band but for a maximum of 6 weeks. In both primary and secondary the difference between the payment by the school and the band is paid by the High Needs Block.

Where a pupil is in the KS4 Alternative Curriculum (AC) the school pays £1,500 a term, which is the equivalent of the AWPU, for a maximum of 2 years and the High Needs Block pays the difference between the AWPU and the actual band.

The current model was introduced in 2013/14 when the High Needs Block was under spending. The effect on the High Needs Block 2014/15 is a forecast over spend of £410k in 2014/15 in PRU top up funding and for this pressure to remain in 2015/16.

In the short term it is proposed that in the financial year 2015/16 a single band is used. The new daily rate will be £103.25. This is based on the average of the four current funding bands and amended to reflect the change in place funding from £8,000 to £10,000. By implementing this proposal it is estimated that there will be no increase required to the High Needs PRU top up budget, so a saving of £476,500.

The proposal under consideration assumes that the cost to school and duration of payment remain unchanged. For a pupil entering RS, primary schools would pay the current rate of £38 a day and the LA High Needs Block £65.25 a day for the first 12 weeks after which the LA pays the whole £103.25 through the High Needs Block. Secondary schools would pay the current rate of £76 a day and the LA High Needs Block £27.25 a day for the first 6 weeks after which the LA pays the whole £103.25 through the High Needs Block.

For AC, schools would continue to pay £1,500 per term (£4,500 per year) with the balance (£15,117.50 per year) met by the high needs block.

For all permanent exclusions the LA High needs block will continue to meet the full cost, though the relevant AWPU funding is removed from the school.

Currently SEN top up funding comes out of the PRU top up funding. There will need to be an exceptional rate on a case by case basis.

The long term proposal from 2016/17 is that the PRU top up funding budget be delegated to the schools who directly commission services from the PRUs, alternative providers or develop their own resources.

Both the Reintegration Service and Alternative Curriculum are expected to end 2014/15 with large surplus budgets (£135k and £265k respectively) which includes contingencies for future running costs (RS £120k and AC £115k). Stacey Williams stated that the RS contingency would be absorbed by the reduction in funding and that they will need to be full from September 2015 to break even assuming the expenditure is the same. The PRUs were concerned about what happens if pupils cannot get into RS and then the KS4 pupils cannot get into the AC which could be exacerbated by the savings proposed in the PRU Outreach funding. Stacey asked whether the priority was filling the places to balance the budget; the priority is the pupils.

Stacey felt that the proposal represented the LA position from the high needs funding point of view, but did not look at how much the PRUs needed to function. The members discussed the need for the PRUs to review their operations costs and that they may need to meet pupils’ needs in a different way. The challenge is manage the change from a needs led budget to a school budget.

ACTION: Impact of the revised funding system to be reviewed at the end of the Summer Term.

DECISION: The Schools’ Forum agreed the adoption of a single daily rate of £103.25 for 2015/16 with schools continuing to be charged as per the current (2014/15) payment arrangements with the LA High Needs Block making up the difference.

DECISION & ACTION: For the financial year 2016-17 the Schools Forum agreed the proposal that the PRU Top Up budget be delegated to schools that can directly commission services from the PRUs, other alternative providers or develop their own resources. Further work on this proposal will continue in 2015 with Headteachers participation.  

C Burnham

C Burnham