Agenda item

Jane Seymour introduced the report (Agenda Item 13), which provided an update on the HNB deficit recovery strategy. Jane Seymour reported that they had been working very hard through the Special Educational Needs and Disabilities (SEND) Strategy to address the pressures in the High Needs Block (HNB). Some key strategies had included supporting mainstream schools to enable more children’s needs to me met as well as setting up local maintained high quality provision. The new Castle at Theale provision had been opened in September 2022. A new provision was also planned to open at Kennet Valley in 2024. Jane Seymour reported that they were in the process of reviewing the current SEND Strategy and setting a new SEND Strategy for the next five years, which would look at what else could be done to address the pressures being faced.  

In November 2021 a deficit recovery plan against the HNB had been requested. This had involved looking at ways to remove the in-year overspend and to reach a position within six years when it was possible to stay within budget. The plan did not address the historic overspends. The report originally brought to the Schools’ Forum had provided modelling of how placement patterns would need to change to achieve this, based on the average costs of placements and an assumed number of placements that would need to be reduced. It had included looking at children with EHCPs at iCollege and external placements and included the total number of estimated placements they would need to reduce by.

Jane Seymour reported that the report on page 111 of the pack was an update against the original report and provided the current position.

Section six of the report provided an updated in terms of iCollege. It was expected that costs at the provision would increase next year and more placements were required rather than less. This was despite the success of strategies that had been put in place, along with invest to save initiatives, which had helped to keep children in mainstream schools. It was largely due to the continuing increase of children with very complex needs. ICollege was able to provide cost effective, high quality provision. The recommendation was therefore that the aim should no longer be to reduce placements at iCollege and that efforts should be focused on reducing external placements over time. An update on current and 23-24 projected costs for children with EHCPs in external places was provided under section seven of the report.

The budget for 2022-23 was based on an estimate of 107 children needing placements during the 22-23 financial year. Positively the placements had not been as high in 2022-23 and at its highest was 95.  In December 2022 the number came to 82 and section 7.3 set out why there had been this reduction.It was partly due to there being a higher than usual number of summer leavers but also due to a lack of placement availability for some children for whom external placements had been agreed. Some of the reduction could also be attributed to the opening of the Castle as Theale, which had taken on children that would have otherwise been placed externally.Jane Seymour drew attention to section 7.4 and reported however that the predicted budget requirement for 23-24 was £7,280,560, an increase of £1,178,660 or 19.3% on the current budget, based on an estimate of 103 children needing placements in 23-24. It was expected that this number should reduce to 96 in September 2023. The reasons for the increase were set out under section 7.5 of the report.

Jane Seymour reported that importantly increased costs for 2023-24 did not just relate to placements but also a significant increase in the cost of placements. It was possible that the number of children estimated to require external placements in 23-24 could be an over estimate, for example, if parental appeals to Tribunal were not upheld. It was hoped that there would be a clearer picture by April 2023 as some cases would have been to a hearing by then.

Jane Seymour explained that the number of placements they currently expected to make in 23-24 (103) was in line with the target reduction in numbers set out in Table 2 of the report. However, estimated costs had not reduced as projected due to significantly higher than average placement costs.

Positively, Jane Seymour reported that in September 2023 The Castle at Theale would take on another cohort of children and in September 2024 the new SEMH provision at Kennet Valley would open.  The next five year SEND Strategy would look at what else could be put in place to support mainstream provision and what other local authority specialist provision needed to be opened.

Jane Seymour reported that the position would be much clearer in April 2023 and she suggested that a further report be brought to the Forum during the summer of 2023.

Jane Seymour concluded that there were some positive signs regarding the following year in that the number of external placements had been reduced however, numbers were predicted to be higher and there was due to be higher than average placement costs leading to higher overall costs. Jane Seymour reminded the Forum that although the figures looked high, West Berkshire was in tranche three of the Delivering Better Value Programme and there were local authorities with much higher overspends. It was important to deliver the best value provision for children whilst getting the best value possible from resources to help decrease costs over time.  

Catie Colston thanked Jane Seymour for her report, which was very clear and useful. It was felt that it was right not be reducing the number of iCollege places at this time. It was important to be realistic about what could be achieved in and outside of schools including other provision. It was not a problem that was going to go away.

Richard Hand referred to external providers and queried what checks and balances there were in terms of what these providers could charge and if there was any insight in terms of what would happen next year with percentage increases.  Jane Seymour reported that this was an area that was scrutinised very closely and work took place with the commissioning team to ensure any percentage increases were thoroughly justified. Fee increases were always challenged. The reality was that external placement providers had the upper hand to some extent in that placements had to be made available for children who needed them. If alternative placements were not available to meet specific complex needs then there might not be the option to not accept a cost. Jane Seymour reported that they tried to anticipate following year increases when the budget was set however, this could be quite volatile.

Gemma Piper reported that the Heads Funding Group had talked briefly about the need for increased places at a lower level. The SEND Strategy had also been discussed and it was acknowledged that this was a piece of work going on in the background and was critical to thinking about the future. Gemma Piper asked what the timescale was for the SEND Strategy and how this would fit in with the budget and the meeting timetable. Jane Seymour reported that the current strategy expired in the summer of 2023. Work had commenced on the new strategy with the SEND Strategic Partnership. The group was shortly due to agree the priorities for the next five years. The aim was that the final strategy would be agreed in September 2023. This would feed into October/November budget setting for 2024/25. Any new local provision had quite a long lead in time in terms of capital building work. Gemma Piper noted that there would be time to factor in the findings of the DPV programme work to the final draft of the strategy.

Michelle Sancho thanked Jane Seymour for her hard work and encouraged members of the Heads Funding Group to contribute to the planning in terms of the view of schools for the future.

RESOLVED that:

·      Jane Seymour would bring a further report to the Forum regarding deficit recovery against the HNB in the summer of 2023.

·         The Schools’ Forum noted the report.