Agenda item

The Panel will consider a report providing an insight into the Council’s ‘Safety Valve’ agreement with the Department for Education in relation to the High Needs Block of the Dedicated Schools Grant.

Contact:  Jo-Anne Sanders, Service Director (Learning and Early Support)

The Panel considered a report providing insight into the Council’s “Safety Valve” agreement with the Department of Education (DfE) in relation to the High Needs Block of the Dedicated Schools Grant (DSG), presented by Jo-Anne Sanders, Service Director for Learning and Early Support.

Jo-Anne Sanders highlighted the following key points -

• The Designated Schools Grant (DSG) - was funding given by the government to local authorities, most of which was allocated to schools directly and was  split into three parts: for mainstream schools, the early years and for children and young people with Special Educational Needs or Disabilities (SEND).
• The Safety Valve Agreement was an intervention programme from the Department for Education (DfE) which was introduced to assist local authorities with significant annual overspend on supporting the education of children and young people with SEND (the High Needs Block). Kirklees began the agreement in 2021/22 due to having a significant deficit in this area; many other local authorities were also affected.
• Quarterly Returns - were made on a quarterly basis, both financial and to report on the activity that had taken place, including where the authority was on or off track to meet delivery timescales.
• Ambitious Transformation Plan - The report detailed the ambitious transformation plan that was in place before the Safety Valve Agreement, and aligned with its aims.
• SEND big plan - Kirklees had co-produced the SEND Big Plan which clearly set out what would be done and when, to provide support for children and young people with SEND.
• Additional funding of £33.5 million in revenue would be provided by the DfE over the lifetime of the agreement, to clear the historic deficit caused by the overspend, in exchange for meeting financial and transformational targets and reaching a balanced in-year position on its Designated Schools Grant (DSG).
• Capital funding - £8.2 million capital funding had also been provided, which along with additional investment from the Council, was being used to rebuild Joseph Norton Academy and Woodley School and College.
• Funding for ARPs - Capital funding was also being used to fund Additionally Resourced Provisions (ARPs) at mainstream schools.

Jo-Anne Sanders referred to the Appendix where strategies with the biggest impact on children and young people had been outlined. These included:

• Rebuilding the two special schools and increasing the number of places.
• Ensure youngsters were included in mainstream schools.
• Creating more ARPs to support youngsters to be able to be educated locally.
• Commissioning services to wraparound the youngsters, such as therapies.
• Improving the quality and compliance of Education and Health Care Plans (EHCPs), within the statutory 20 week timescale.
• Working with schools and social care and health professionals to identify need and provide children with the right support as soon as they need it.
• Creative strategies such as Assistive Technology

The Panel was informed that there were challenges around funding, but that there was strength in the area partnerships such as the Parent/Carer Forum, Health and Education Partners to ensure value for money and the best possible outcomes.

The Panel asked for clarification on the deficit profile and were advised that:

• The agreement was signed in March 2022 and ran until 2029/2030.
• A positive in year balance would be in place by 2026/27 to ensure that the Council did not overspend.
• The table referred to the cumulative deficit, which in 2021/22 was £35.8m, and was predicted to increase over future years while strategies were put in place.
• Future years figures were forecasts, and it was forecast that by 2029/30 the historic deficit would be £33million.
• The government had committed to £33.5million which should mean that the deficit would be cleared.
• The forecasts included a council contribution.
• The revenue funding was being paid on a quarterly basis subject to satisfactory quarterly monitoring and the payments were incremental over the term of the agreement. 

In answer to a question about how confident the Service was that the targets would be met, the Panel were advised that despite the challenges, the last payment had been secured and despite being off-track currently, there was no indication that future payments would not be made. Jo-Anne Sanders advised that there was continuing engagement with the DfE Advisors over rising costs due to inflation, a rise in demand for services and increased complexity of need, which all authorities were experiencing.  More Alternative Provision (AP) was needed, and delays to the AP Free School that was planned had been built into the forecast. The Panel was informed that there was close monitoring of every aspect of the Transformation Plan and being open and transparent in terms of the reporting.

The Panel were also advised, in answer to a question, that the DfE had previously placed the service under enhanced monitoring and had provided suitable support and challenge. Schools and Early Years had been supportive by transferring funding to the High Needs Block, and the DfE recognised that every effort was being made to adhere to the plan.

RESOLVED:

The Panel gave their support for the report and asked that officers consider and take on board any questions and comments raised by the Panel in future reports.