Agenda item

Report and appendix attached.

The Funding Forum was referred to a revised item that had been circulated the previous afternoon.  It was noted that DfE’s Schools and Early Years Finance Regulations now required a deficit recovery plan to be produced for any level of deficit on the DSG account with updates given to the DfE as well as to Schools Forums.  Previously, deficit recovery plans were required only for deficits of over 1% of DSG.

The balance of the Dedicated Schools Grant (DSG) showed an overall deficit of just over £1m, the first year that Havering had recorded a deficit.  There had been an in-year overspend in high needs of £4.6m which had been partially reduced by a DSG underspend of £1.3m carried forward from 2018-19.  There remained a £3.3m deficit however. Some offsets from underspends elsewhere in the DSG could also be made to reduce the final deficit to be carried forward to 2020-21. These were detailed on the agenda and included the following:

Early Years Block    £472k

The balance of 2 year old and 3 & 4 year old funding of £257k

Savings from the central retention of £165k

A 50% reduction in the amount previously agreed for the new database of £50k

Schools Block           £505k

Because of delays in the expected housing developments, the pupil growth fund had not been fully spent.  The number of schools supported from the fund and the amounts allocated was detailed in an appendix to the agenda item.

De-delegation           £9k

The trade union facility time budget had underspent by £9k.

Other de-delegation underspends would be returned to the contributing LA Maintained schools.

Central Schools Support Block      £347k

School Partnership/Schools Causing Concern £146k

Central services £111k

School energy conservation projects £90k

Other DSG Funding            £861k

Unallocated Early Years Block £788k

Balance of grants received £73k

These underspends reduced the final deficit to be carried forward to 2020-21 to £1.133m.

The Early Years representative felt it unreasonable that the use of such a high level of underspend within the Early Years Block was being used to offset the High Needs overspend and that the £788k of Early Years funding had not been allocated to early years.  Officers felt that DSG funding streams should not be looked at in isolation and difficult decisions would have to be made about priorities.  The £788k was a late allocation from the DfE that had not been factored into the funding of providers.  There were also proposals later on the agenda to increase elements of early years funding.  The Early Years representative felt that that the proposals would have a disproportionate impact on Early Years and that Early Years underspends should not be transferred to the High Needs block.

Commitments for 2020-21 were limited to the following:

Reimbursement to LA Maintained schools of de-delegated funding £49k

Retention for the new early years database £50k (reduced from £100k).

A report on the High Needs deficit and forecast for 2020-21 would be brought to the September meeting of the Forum.  There were only limited changes that could be made to the High Needs block and it was therefore difficult to make savings.  The continuing pressure on high needs was likely to lead to a further deficit by the end of the year.  It would be necessary to review out of borough placements and two new case officers were therefore being recruited.

The Chair agreed to discuss high needs issues with secondary and primary heads and would also raise that there was vacancy for a representative from the secondary sector on the SEND board.

The Forum AGREED to the allocation of funding to offset the deficit in High Needs and to the commitments in financial year 2020-21 as shown in the revised report at agenda item 5.  There were 6 votes in favour of the decision, 2 votes against and 0 abstentions.  The Forum also noted the concerns raised re the Early Years sector.