The Schools Forum met on Wednesday 19 June 2024 to discuss the Dedicated Schools Grant (DSG) financial outturn for 2023-24, review changes to the Scheme for Financing Schools and Schools Financial Regulations for 2024-25, and consider a new SEND Resource Allocation System (RAS). The Forum approved amendments to the Scheme for Financing Schools and noted the Schools Financial Regulations, and also approved the introduction of the proposed RAS for children and young people with an EHCP.

Dedicated Schools Grant Financial Outturn 2023-24

Folake Olufeko, Head of Finance for Brent Council, presented a report detailing the final Dedicated Schools Grant (DSG) outturn for the 2023-24 financial year. The Forum noted that there was an in-year surplus of £0.6 million against a budget of £370.6 million. This surplus was a positive movement from a previously forecast deficit of £0.8 million. The underspend was primarily attributed to savings in the Early Years (£1m), Schools (£0.7m), and Combined Schools Services (£0.3m) blocks. However, this was offset by an overspend of £1.4 million in the High Needs Block. The cumulative DSG deficit carried forward from 2022-23 was £13.8 million, which had reduced to £13.2 million by the end of 2023-24.

The report highlighted that the Schools Block underspent by £0.7 million due to lower than projected growth in pupil numbers. Conversely, the High Needs (HN) Block overspent by £1.4 million. This overspend was largely driven by increased top-up funding for Post-16 provision (£1.8m) and in-borough non-maintained special schools and academies (£1.4m). There was also a significant pressure of £1.4 million against independent day and residential top-up funding due to an increased number of pupil places in these settings, and an additional £1.1 million cost for educating pupils with Education, Health and Care Plans (EHCPs) awaiting school placements. The increase in the number of children with an EHCP was noted as 8.1% from March 2023 to March 2024, with 3,576 children having an EHCP.

Offsetting these pressures were underspends in recoupment income from other local authorities (£0.8m), SEN Services budgets (£1.4m), and SEN Support budgets (£0.3m). Brent is participating in the Department for Education's (DfE) Delivering Better Value (DBV) in SEND programme, receiving £1 million in grant funding over two financial years to reform high needs systems. Four workstreams have been developed under this programme: Intervention First, SEND Assurance, Workforce and Inclusive Environments, and Commissioning.

The Early Years Block underspent by £1 million, mainly due to a DfE in-year adjustment following the January 2023 census. The surplus will be held in reserves to offset potential clawbacks.

The report also detailed school balances, showing an overall decrease of £1.9 million from £15.0 million in 2022-23 to £13.1 million in 2023-24. While 23 schools increased their reserves, 33 decreased them. Seven primary schools were in deficit at the end of 2023-24. The overall financial position for schools presented a mixed picture, with many continuing to face financial difficulties due to falling rolls and rising inflation.

Councillor Gwen Grahl, Cabinet Member for Children, Young People & Schools, acknowledged the tough financial times schools were facing and pledged to continue lobbying for the best possible funding for Brent schools. The Forum RESOLVED to note the report.

Scheme for Financing Schools & Schools Financial Regulations 2024-25

Folake Olufeko, Head of Finance, presented a report detailing changes to the Scheme for Financing Schools and Schools Financial Regulations for the 2024-25 financial year. The Forum noted that the changes were in line with DfE guidance and updated local regulations.

Key changes to the Scheme for Financing Schools included minor updates to the financial control section, increasing the threshold value for low-value contracts. A significant change regarding the sale of land assets was introduced, where retention of funds would now be subject to the Secretary of State's consent. Additional changes were made to the pension section.

The Schools Financial Regulations for 2024-25 were also updated, supplementing the scheme and providing a framework for school governors and head teachers to ensure public accountability and financial integrity.

The Forum RESOLVED to approve the amendments to the Scheme for Financing Schools 2024/25 and to note the Schools Financial Regulations 2024/25.

Brent Mainstream School's Banding Matrix Review

Shirley Parks, Director, Education, Partnerships and Strategy, introduced a report on the review of Brent Mainstream School's Banding Matrix, outlining how a SEND Resource Allocation System (RAS) could improve transparency, consistency, and potentially provide savings against the High Needs Block (HNB).

The report explained that the proposed SEND RAS would be used across mainstream and ARP placements in early years' settings, schools, and Further Education institutions. The descriptors for the RAS were being developed in collaboration with parents and partners, with input from school leaders and SENCOs. The RAS includes 12 areas for assessing a child's needs, scored on a ranking system from 'no additional support' to 'exceptional support', with the total score corresponding to a funding level.

Three options were considered for implementation:

1. Do nothing: Maintain the current hours-led system, which would not address underfunding in some ARP placements or provide continuity across age ranges.
2. Continue with the current system and apply SEND Assurance Review work: This would involve reviewing EHCPs over two years, potentially generating savings of £1.2m, but would not address ARP underfunding or provide system continuity.
3. Introduce the proposed Resource Allocation System (RAS): This needs-led approach would improve transition between settings and support conversations about appropriate interventions. It is expected to increase top-up costs for ARPs but generate overall savings similar to Option 2.

The preferred implementation option was a partnership approach between the LA and schools/settings to implement the RAS by April 2025, subject to consultation.

Raphael Moss, a Headteacher, expressed concern about the potential impact on his school, particularly regarding ARP placements, and sought further detail on the SEND assurance work. He also highlighted delays in the EHCP process and financial impacts on schools.

The Forum noted that £1m was received from the DBV programme for test and learning projects, and an update on its use would be provided. They also requested details on the established banding arrangements for Special Schools.

Following discussion, the Forum RESOLVED to approve Option 3 to introduce the proposed RAS for all children and young people with an EHCP from age 0-25 years in mainstream schools and settings, including ARPs. They also agreed to consult on the new approach during the autumn term and to work in partnership to implement the RAS by April 2025, subject to consultation and a further report.

Any Other Urgent Business

The Forum noted that it was Gerard McKenna's last meeting before his retirement, and the Chair thanked him for his service. A query regarding the 3.4% increase applied to SEN additional funding was raised, and Folake Olufeko advised that a detailed response would be provided outside the meeting, clarifying that the increase also applied for 2024-25.

Dates of Future Meetings

The schedule for future meetings was noted, with the next meeting scheduled for Thursday 14 November 2024.