Agenda item

Safety Valve Update

Minutes:

Mel Meggs and Eamonn Croston updated the meeting and slides were shared on screen.

 

·         Introduction / Context

-       We will receive £33.5m to help address the historic high needs deficit.

-       We have placed a submission for additional capital

-       We hope to be in a balanced position over a 5 year period.

-       The transformation plan includes financial targets

 

Q. How much was the deficit?

A. The deficit was approximately £34m. The £33.5m will clear the debt.

 

·         What does this mean?

-       Trajectories have been developed based on trends.

-       Workstreams focus on additional capacity within Kirklees (ARP, New Special Schools) whilst educating children in an appropriate setting to suit the children’s needs.

-       We are developing an Inclusion Support offer, Graduated Approach and skills / knowledge of staff.

-       Outcome of trajectories – 2026/27 High Needs will Break Even.

-       To achieve Break Even, the DfE were explicit about contributions from schools (as part of block transfer) and council.

-       The council will contribute £23m through reserves and division of general fund base budget.

-       Schools Forum have previously agreed 0.5% / £1.6m per annum transfer for 2022/23. As part of this agreement investment back into the system will take place starting with ARP and Satellite Special Schools.

-       The Safety Valve agreement is based on financial position and assumptions. There is a strong recommendation from the DfE that the block transfer is increased as follows;

       2022/23 – £1.6m

       2023/24 – additional £0.5m

       2024/25 – additional £0.5m

 

It was noted that we have received a significant amount of £33.5m from the DfE and the government are expecting contributions to be made from schools.

 

Quarterly monitoring will be in place to support the drip feed of funding from the government over the next 5 years.

 

·         Next Steps

-       We received £13.5m from the government in March 2022. The balance will be paid annually in equal instalments to 2026/27.

-       The payments will be performance based.

-       Further clarification to be sought on the need for future consultation with Schools Forum.

-       Quarterly Monitoring to DfE. This will be shared with Schools Forum.

-       Cabinet report of Safety Valve and related sufficiency capital expenditure.

 

·         Capital / Investment

-       Significant Capital Investment

-       2 Special Schools creating 100+ places to enable our children to be educated locally.

-       Kirklees will borrow £28m.

-       Invest in new Additional Resources Provision / Special School Satellite (114 places phase 1) and where necessary develop capacity within existing schools.

-       Updates on status of Capital submission as soon as we know.

 

Q. How much additional capacity will be taken up by students returning from out of area provision and are we really creating more capacity?

A. It will be a mix. Returning students will take up some of the additional capacity. The Satellite Provision will be for existing mainstream students in the main. We want an inclusive model in Kirklees. Going forward, we would not want children to be placed out of areas unless the circumstances were unique.

 

Q. Will there be additional charges in addition to the proposed increases in the block transfer outlined already?

A. No.

ACTION: Natalie McSheffrey to circulate the Safety Valve Agreement with the DfE to Schools Forum.

 

Supporting documents: