Agenda item

Agenda item

Dedicated Schools Grant Budget Monitoring

Minutes:

The Forum considered a report of the Directorate Finance Lead – Children and Schools that discussed the monitoring position for the centrally held Dedicated Schools Grant (DSG). The forecast year-end position on the centrally retained DSG was reported as a net overspend of £1.3m which would be carried forward to 2019/20 and set against the grant.

 

It was explained that the current projected overspend related to overspends in the High Needs Block and an Early Years Block income shortfall, though there had been a small underspend in the Schools Block.   The main headlines for each of the blocks were described as follows:

 

?       Early Years block: £2.4m overspend.  This included projections concerning clawbacks for the Two, Three and Four year old offer, the Three and Four year olds entitlement and the Working Parents additional 15 hours adjustment.  It was emphasised that exact amounts were not yet confirmed as information on take-up was yet to be finalised.

?       Schools block: £3.0m underspend. There had been a £2.5m underspend in this budget due to reduced expenditure in the Growth Fund largely attributable to pupil growth now being instead funded through the individual school budgets. There had been a reduced spend on mobile classrooms and in-year expansions were lower than previously anticipated.  Additionally, academy recoupment adjustments from the ESFA were also lower than anticipated.

 

?       High Needs block: £2m overspend.  It had been recognised that there was a need to grow high needs placements both in mainstream and special schools.  There had been a growth in the number of pupils with high needs in mainstream schools and additional special school places which as a result of operating at capacity had led to a pressures in ‘out of areaplacements, Education Health and Care Plans (EHCPs) and post 16 budgets.

?       Central Services block: £100k underspend. The 2018/19 budget in this area was underspent by £100k in Admissions.

 

The Forum was invited to comment on the projected overspend.

 

There was a discussion about the need for additional special needs places.  The Directorate Finance Lead – Children and Schools said that proposals were being explored through the use of capital funding and how those funds may be invested to ease future pressures and bring about less reliance on expensive out of area placements.  The Head of Inclusion added that options to develop a post-19 offer were under consideration which would also alleviate pressures on the HNB.

 

A member of the Forum said that it was important to recognise that the DFE had responded in part to the Authority’s representations about the need for additional funding in the city, although it was clear that the additional resources that had been allocated were not sufficient to match the need within the city.  In response, the Directorate Finance Lead – Children and Schools said that it had been indicated that the HNB will be prioritised in the next Comprehensive Spending Review but how that would manifest remained to be seen.

 

There was discussion about the growth in the population of high needs pupils in Manchester which was at a rate that is higher than other cohorts in the city – some members were keen to explore the underlying reasons for this.  The Head of Inclusion said that there had been a piece of worked commissioned by health partners as part of a strategic review which had concluded that this was due to population growth.

 

The Forum was asked to note that a report that specifically focussed on high needs block pressures would be submitted to a future meeting of the Forum.

 


Decisions

 

1.    To note overall the current projection for the DSG retained budget is a forecast overspend of £1.3m.  The balance is to be carried forward to 2019/20 and will be set against the grant

2.    To note that a report which specifically focusses on pressures within the High Needs block will be submitted to a future meeting of the Forum

 

Supporting documents: