The Schools Forum met on Thursday 20 January 2022 to discuss the 2022/23 budget and the SEND Futures Plan. Decisions were made regarding the proposed increase in split site rates, Early Years central item budgets, and the Early Years local formula.

2022/23 Budget

The Schools Forum received an update on the proposed budget for the 2022/23 financial year. The Department for Education (DfE) announced the allocation for the Dedicated Schools Grant (DSG) in December 2021. For Richmond, the total allocation is £183,823, divided into four blocks: Schools Block, Central Schools Services Block, High Needs Block, and Early Years Block.

Following a recoupment of £2,478.0 from the Schools Block, the total for this block is £132,327.4. Despite a decrease of 65 pupils, the per-pupil funding has increased due to rises in primary and secondary unit funding. However, unresolved duplicate pupil figures on the Authority Pro-Forma Tool mean the funding is short by the equivalent of 10 pupils, necessitating amendments to on-roll figures. A transfer of £250,000 for Targeted High Needs and £50,400 for Early Intervention Outreach support will continue.

Richmond has adopted the DfE's National Funding Formula rates, with the exception of the Average Weighted Pupil Unit (AWPU) rates. The Schools Forum agreed to a Minimum Funding Guarantee (MFG) rate of 0.50%. Modelling by officers indicated a residual fund of £176,300 available for distribution to schools, achieved by increasing AWPU rates above the National Funding Formula baseline.

A contingency budget is not required for 2022/23. The budget for the historic Central Schools Services Block has been reduced by 20% by the DfE, but the budget for ongoing items has increased, resulting in a total of £1,013m for 2022/23. A remainder of £190,000 from the previous year will be applied to the High Needs Block overspend.

The High Needs Block funding is set to increase nationally by 9.6%, with Richmond receiving an additional £2.3 million. This figure includes an indicative import/export figure and is subject to change in June 2022 when updated figures are released by the DfE. The High Needs Formula will also be adjusted based on population changes.

The Early Years Block will see an increase of 17p per hour for 3 and 4-year-olds and 21p per hour for 2-year-olds. The intention is to pass this increase directly to providers. The recommended hourly rates for early years providers are £5.48 for 3 and 4-year-olds (an increase of £0.17) and £6.29 for 2-year-olds (an increase of £0.21). Funding for Social Deprivation remains at £2.16 per hour. The budgets for central Early Years items, including the Advisory Service, Home visits for children with SEND, and Therapies, remain unchanged at £122,300, £70,000, and £234,200 respectively, totalling £426,500.

The SEND Inclusion Fund was also approved, with no changes to the 2021/22 budget. This includes the Termly Inclusion Fund (£140,800), Discretionary Fund (£17,600), High Needs Access Fund (£17,600), Early Years Advisory Teacher (£29,000), Early Years Enhanced Support provider Funding (£44,000), and Unit/Top ups for children without EHCP (£281,300), totalling £530,300.

Supplementary grant funding will be provided to schools and early years providers to cover National Insurance increases related to the Health and Social Care Levy and other pressures.

Discussions with the DfE regarding the Safety Valve Agreement indicated an assumed 8% annual increase in High Needs Block funding. While this holds true for 2022/23, other publications suggest a lower assumption. National funding increases have been announced at 13% by the DfE, and disparities in funding between authorities persist, leading to ongoing discussions with the DfE.

The split site rate has been increased by 2%, which is cost-neutral to the DSG as the amount is returned the following year, provided it is reasonable.

The Forum RESOLVED to:

• AGREE the proposed increase in split site rates.
• AGREE the Early Years central item budgets for 2022/23.
• AGREE to recommend the proposed Early Years local formula.
• NOTE the information provided in the report.

SEND Futures Plan

Members received a verbal update on the SEND Futures Plan. Progress has been sufficient to secure Quarter 3 Safety Valve funding from the DfE, with confidence in meeting the terms for Quarter 4. A panel established in September 2021 to review requests for Education, Health and Care (EHC) needs assessments has improved the quality of requests and ensured statutory duties are being met. The average costs of placements in maintained and secondary schools are below target, and the average costs for Further Education placements have decreased compared to the previous academic year.

Areas of concern include a rise in the number of children with increasingly complex needs, leading to an increase in EHCPs. The costs of independent placements are rising, and there are challenges with staff recruitment and retention, as well as a shortage of specialist places.

The commissioning team is being expanded with two permanent SEND placement commissioners and an Associate Director for Commissioning and Business Development. Officers are working with schools to meet student needs without an EHCP and to provide mainstream placements. A number of Year 6 children are still awaiting Year 7 placements.

Officers are actively engaging with the DfE, who are comparing the local situation with national trends. The anticipated Government SEND Review is expected to bring about a significant overhaul of the SEND system, and its findings will be incorporated into local plans.

New provisions are planned at Darrell School, The Vineyard, and Hampton High. Darrell School will host a Strathmore provision for complex needs. The Vineyard School's provision will replace the one previously planned at Barnes for students with autistic spectrum condition (ASC). Hampton High already has a provision for students on the autistic spectrum. A feasibility study is also underway for a Strathmore provision at Hampton High. However, there remains a gap in provision for children with social, emotional, and mental health (SEMH) issues.

ASC is the most prevalent of the increasing needs, with SEMH also on the rise. A notable increase in in-year admissions over the past six months has put pressure on the system, including a small number of children with very complex needs who have been difficult to place locally.

Officers believe the DfE understands these pressures but expects schools and local authorities to manage increasing demands. Providing local examples as evidence to the DfE is crucial, and the DfE conducts monthly national surveys. The DSG is affected by factors outside the local authority's control, such as the opening of new free schools, which are raised with the DfE. Strong leadership from all statutory bodies is considered important.

The SEND Review is expected to address the reasons for the rise in EHCPs and diagnoses, with Workstream 4 focusing on early intervention and reducing demand for EHCPs.

2021/22 Finance Update

Members received an update on the finances for the 2021/22 financial year. The grant allocation was reduced by £30,000 due to an additional six learners being educated out of the borough, which impacted the import/export adjustment.

An overspend of £2.187 million is projected, including an allowance of £59,000 for expected EHCPs to be approved before the end of the year. This results in an expected deficit of £8.174 million by year-end. This represents an improvement on previous years, attributed to the SEND Futures plan, an expected £4 million in safety valve funding, and £1.2 million from the local authority general fund.

Budgetary pressures stem from an increase in EHCPs and general inflationary pressures, particularly at post-16 level. The High Needs Block budget is also facing increased demands due to more complex needs and a lack of places. However, the budget is currently in line with officers' expectations.

The Forum RESOLVED to:

• NOTE the latest DSG allocation for the 2021/22 financial year.
• NOTE the projected DSG outturn position for the 2021/22 financial year.

Other Updates

An update on school placement planning, originally scheduled for the January meeting, will now be presented in June when further information is expected to be available.

The June meeting will be Elaine Ball's¹ last as Chair, as she is retiring. Volunteers are being sought for the position.

The Chair of the Education and Children's Services Committee sought members' opinions on the impact of the government's withdrawal of the School Improvement Grant. Members expressed general concern that both academies and maintained schools would be negatively affected.