The Schools Forum of Richmond upon Thames Council met on Thursday 4 February 2021 to discuss the Scheme for Financing Schools, the 2020/21 finance update, the 2021/22 budget, and the SEND Futures Plan. A key decision made was the amendment of the Scheme for Financing Schools to include a Licensed Deficit Scheme, allowing the local authority to advance funds to struggling schools.

Scheme for Financing Schools - Supporting Schools in Deficit

The Forum agreed to amend the Scheme for Financing Schools to include a Licensed Deficit Scheme. This change was necessitated by a 2018 decision by the Secretary of State that removed the ability for local authorities to extend loan facilities to maintained schools facing financial difficulties. The new scheme will allow the local authority to advance a percentage of a struggling school's budget, which will be repaid from its future Official Devolved School Grant (DSG) allocation. This measure aims to support schools experiencing financial difficulties that they cannot resolve within a single financial year. It was clarified that this would not affect individual school allocations and that if a school converted to an academy, the debt would remain with the school. The Director of Children's Services will formally sign off on any advances, and AfC will facilitate peer-to-peer support for struggling schools.

2021/22 Budget

The Forum received an overview of the 2021/22 budget, which totals just over £178 million for the DSG. The Central Schools Services Block is £982,000, with a small surplus of £176,000 from the copyright license figure, which will be transferred to the High Needs Block. The Schools Block has increased by nearly £9.4 million, attributed to rising pupil numbers in the secondary sector offsetting decreases in the primary sector, and a slightly higher secondary unit rate. Discussions also covered discrepancies between Department for Education (DfE) funding calculations and actual school census data, which can lead to funding shortfalls.

Regarding the High Needs Block, the provisional grant allocation is £30.5 million, representing a 9.5% increase, though closer to 7% when accounting for pay and pensions grants. The expected spend is around £32 million, exceeding the allocation.

For the Early Years Block, a draft allocation of £15.3 million was presented. The two-year-old rate will increase by 8p per hour, and the 3 and 4-year-old rate by 6p per hour. The local authority proposes to pass on 100% of the two-year-old increase and 95.23% of the 3 and 4-year-old funding to providers. No changes are proposed for the Central Items block, which includes funding for the Early Years Advisory Service, home visits for SEND children, and therapies, with an allocation of £426,500. The SEND inclusion fund is proposed to remain at £530,300. These proposals would allow £130,000 to be transferred to the High Needs Block to support early interventions.

The Forum unanimously agreed to the proposed increase in split site rates, the Early Years Central Items budgets for 2021/22, and other proposals in the report regarding the local formula.

2020/21 Finance Update

Members were updated on the 2020/21 finances, with the net DSG allocation remaining unchanged. The predicted net overspend has reduced from nearly £3.2 million to approximately £2.8 million. However, the High Needs Block has an overspend of around £4 million, while the Early Years Block underspend is decreasing due to nursery place uptake. The total cumulative overspend, including carry-forward, is expected to be around £17.6 million. An overspend in the admissions team, caused by IT costs, has been brought back within budget through restructuring.

Concerns were raised about substantial variances in the post-16 block. Officers explained that budget allocation is limited to the grant, but actual spend is increasing due to higher numbers. Strategies to manage costs include early discussions with young people about post-16 options like apprenticeships. The increase in spend is also linked to the extension of post-16 provision from age 19 to 25 in 2014. Work is ongoing to improve local provision for 16-25 year olds, focusing on pathways into employment and apprenticeships, and enhancing collaboration with the transitions team and vocational routes. The line management of the 14-25 team has been restructured to improve joined-up working. It was agreed that post-16 provision and spend would be an agenda item for the next meeting.

SEND Futures Plan - Focus on Deficit Management

The Forum was informed that the DfE has changed the requirement from a 'Deficit Recovery Plan' to a 'Deficit Management Plan' for local authorities, and has recognised the role of Schools Forums in this process. The presented SEND Futures Plan is an early draft, with ongoing discussions with the DfE regarding its final form. The plan aims to improve services and reduce costs, making it crucial for deficit management. It emphasises partnership working and will be monitored by a Partnership Board comprising representatives from the local authority, schools, health partners, families, and other stakeholders. An annex highlights the financial implications, including expected spend in the High Needs Block and the impact of cost avoidance and savings.

A draft plan submitted in November was unbalanced, with funding insufficient to cover year-on-year gaps. The DfE expects the local authority and partners to find ways to balance the fund, after which the DfE would assist in addressing the cumulative deficit. Savings and cost avoidance plans are structured around three themes: improving and increasing local provision, commissioning, and ensuring all partners contribute their fair share.

The Chair queried whether funds from the Targeted High Needs fund could be directed towards the recovery plan instead of being distributed to schools, noting this as a potential future discussion point. The possibility of increasing specialist resource provision was also raised. Officers indicated ongoing conversations, awaiting the impact of new special schools in Kingston and Richmond, and the specialist resource provision at Hampton High and Barnes. The potential for a further wave of the special free school programme from the DfE is also being considered. While gaps in provision exist, the value for money of local solutions is a key consideration.

The Chair of the Children's Services Committee sought teacher input on whether specialist resource provision or specialist teaching support is more needed. Members noted they could only speak from their own school's perspective. A particular challenge involves children with complex needs who would benefit from specialist provision but whose parents do not wish them to attend. These children are being identified earlier in primary schools, which may lack the capacity to meet their needs, and specialist resources may not be appropriate or available. Concerns were also raised about children with mental health problems being issued with Education, Health and Care Plans (EHCPs) when alternative support might be suitable. The impact of the COVID-19 pandemic may lead to an increase in such scenarios, and requests for repeating years due to missed schooling are also being received, with the full impact yet to be determined.

Forum Update

Members requested information on how to collaborate more effectively with Children and Young People's Partnerships (CWPs) and Clinical Commissioning Groups (CCGs) to access enhanced mental health support. Officers noted that a new wave of mental health support is being finalised for the borough, which will increase capacity across 70% of schools, including the addition of two qualified psychologists. However, officers remain concerned about a potential rise in demand. Some voluntary groups are already providing support programmes accessible to schools.

Dates of the Next Meetings

The next meeting is scheduled for 24 June and will be held virtually.