The Education and Children's Services Committee met on Monday 20 February 2023, discussing a projected £2.088 million overspend on general fund revenue services and approving the proposed budget for 2023-24. Key discussions also included the education capital maintenance programme and the schools budget for the upcoming year.

Quarter 3: Budget Monitoring Report 2022-23

The committee received a report detailing a projected overspend of £2.088 million on general fund revenue services for the current financial year. This overspend is attributed to similar pressures as those reported in October 2022, including a continued increase in the number of Children Looked After (CLA) under 18, with 120 children being supported at the time of the report. Inflation has also significantly impacted the cost of accommodation, with a shortage of affordable local options leading to increased competition among local authorities. An overspend of £774,000 was also noted for care leavers over 18, with 108 individuals being supported and weekly costs rising by up to 28%. The report also highlighted an increased number of asylum seekers over 18 being supported, as well as those with no recourse to public funds. High social care staffing costs, due to a reliance on agency staff, were also a significant factor.

The Dedicated Schools Grant (DSG) was forecast to overspend by £2.097 million, with the council agreeing to provide an additional £1.2 million from the General Fund as part of the SEND Futures Plan. The Chief Operating and Finance Officer anticipated that the council would be able to claim the full amount of safety valve funding. Members expressed concern over delays in Home Office processing for asylum seekers and agreed to approach local MPs to lobby the government for increased resources to ensure timely confirmation of young people's status. The Chair confirmed she would write to the MPs following the meeting. The committee noted the projected overspend and the actions being taken, as well as the forecast deficit for the Dedicated Schools Grant and the latest position on the Capital Programme.

Directorate Budget Report 2023-24

A proposed increase of £4.2 million for the 2023-24 budget was presented, reflecting inflationary pressures, staff pay awards, and changes to government grants. The council is set to receive a social care grant of £8.8 million, with £4.337 million allocated to children's social care, an increase of £1.6 million. The budget has also been adjusted for changes to the Dedicated Schools Grant (DSG) and the new Mainstream Schools Additional Grant (MSAG). Growth included in the previous year's budget for the National Health and Social Care Levy, which was withdrawn, has been removed. Employee pension contributions for children's services staff have increased by 0.9% due to a pension fund deficit. The report outlined proposed savings of £1.4 million for the coming year, with plans to review delivery models across Richmond and Kingston. A detailed report on the implementation of Family Hubs is expected in June. The committee noted and commented on the proposed budget for 2023/24.

Education Capital Maintenance Programme 2023-24

The committee reviewed the full capital maintenance programme for 2023-24, which is funded by the Schools Condition Allocation Grant from the Department for Education (DfE). The council received just over £1.2 million for this programme, with schools expected to contribute 10% of costs, capped at £20,000. Despite an additional £105,000 in DfE funds this year, construction inflation has significantly increased costs, leading to fewer projects being planned. A reserve list of projects is maintained and would be added if further funding becomes available. Members raised concerns about the prioritisation of projects and the delegation of authority for reprioritisation. Councillor Humphreys stated she was not comfortable with recommendation b) and would abstain from voting on it, feeling the committee should have oversight of the reprioritisation and determination of projects over a certain value. The committee approved new schemes totalling £1.322 million for the Education Schools Condition Capital Maintenance Programme for 2023/24 and delegated authority to the Head of Projects and PMO, in consultation with the committee chair, to reprioritise and determine the list of projects for delivery.

Schools Budget Report 2023-24

The schools budget for 2023-24 is funded by the Dedicated Schools Grant (DSG) and the Mainstream Schools Additional Grant (MSAG). The DSG allocation for next year has increased by 8.89%, with £1.6 million of this increase due to a rise in pupil numbers and £5 million rolled over from the previous year. The report detailed proposals for transfers into the high needs block to alleviate pressure, and outlined the Schools Block, which provides funding for the day-to-day running of schools. The Central School Services Block, covering services like Governor Support and School Admissions, was approved by the Schools Forum. The budget for the Early Years Block has seen an increase in grant funding, with proposed increases to the hourly rate for nurseries providing funded places for two, three, and four-year-olds. The allowance for the SEND inclusion fund for children aged 0-5 years remains at £530,000. A budget of £38.3 million is proposed for the High Needs Block, and Achieving for Children (AfC) will continue to implement the SEND Futures Plan, with the opportunity to claim up to an additional £3 million in Safety Valve Funding.

The committee discussed the financial challenges faced by schools, including inflation, the complexity of SEND needs post-COVID, and the recruitment and retention of qualified teaching staff. Schools will soon be submitting three-year budget forecasts, and AfC will provide support to help schools reduce costs. The Schools Forum had previously discussed a falling rolls fund but concluded it was not the right approach to help schools. The Chair noted her oversight of the schools' financial position and that all schools can receive support from AfC and a school improvement partner, deeming it inappropriate for the committee to discuss individual schools' finances. The committee recommended that Full Council approve the Schools Budget for 2023-24, the proposals for the Schools Block, Central School Services Block, Early Years Block, and High Needs Block.

Child and Adolescent Mental Health Services (CAMHS) - Support for Schools

The committee received an update on the support provided by Child and Adolescent Mental Health Services (CAMHS) to schools. The Mental Health Support Team (MHST) offers in-school support, including counselling, workshops for parents, and training for staff, with all schools now having access to an MHST. Funding for MHSTs is provided by the NHS until at least 2025-26, and early intervention has shown positive results in reducing more complex needs. AfC also provides safeguarding advice on social media use. While waiting times for South West London and St Georges CAMHS have improved, further enhancements are needed. The committee was informed that there are a wide range of reasons for the under-representation of black and minoritised ethnic communities accessing mental health services, which is being investigated. Levels of risk-taking behaviour amongst young people in Richmond remain high. The committee noted the impact of the Mental Health Support Teams on children's mental health and wellbeing.

AFC Reserved Ownership Decisions

The committee reviewed the annual report on reserved ownership decisions for Achieving for Children (AfC). A detailed report on Family Hubs will be presented in June, with initial plans including the integration of services for children aged 0-5 and 12-18 years into a single service area for 0-18 year olds. AfC has relocated its offices and is developing an assets strategy to optimise the use of council assets and office space. Funding from the three owning councils is ring-fenced to prevent cross-borough subsidisation. The committee approved the Business Plan, including the Medium Term Financial Strategy, the detailed 2023/24 budget, and the Treasury Plan. Authority was delegated to the Director of Children's Services, in consultation with the Chair of the Education and Children's Services Committee, for the award of a new contract for the employment of temporary workers.

Admission Arrangements for Community Schools for Entry 2024-25

The Head of School Admissions presented the admission arrangements for community schools for entry in 2024-25, confirming there were no proposed changes. The committee approved the Authority's admission arrangements for 2024/25.

Forward Plan

The committee noted the current list of items on the Forward Plan, with the report on proposals for implementing Family Hubs being moved from the March meeting to the June meeting.