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 review of the Brent Mainstream School's Banding Matrix for Special Educational Needs and Disabilities (SEND) provision. Key decisions included noting the final DSG outturn, approving amendments to the Scheme for Financing Schools, and agreeing to consult on a new SEND Resource Allocation System (RAS).

Dedicated Schools Grant Financial Outturn 2023-24

Folake Olufeko, Head of Finance for Brent Council, presented the final Dedicated Schools Grant (DSG) outturn for the 2023-24 financial year. The report indicated 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 underspends were primarily in the Early Years (£1m), Schools (£0.7m), and Combined Schools Services Blocks (£0.3m), offset by an overspend of £1.4m in the High Needs Block. The cumulative DSG deficit carried forward from 2022-23 was £13.8 million, which reduced to £13.2 million by the end of 2023-24.

The Schools Block underspent by £0.7 million, mainly due to lower than projected pupil growth. The High Needs (HN) Block, however, saw an overspend of £1.4 million against its £74.8 million budget. This overspend was largely attributed to increased top-up funding for Post-16 provision (£1.8m) and in-borough non-maintained special schools and academies (£1.4m), as well as pressures on independent day and residential top-up funding (£1.4m) and the education of pupils awaiting school placements (£1.1m). These pressures were partly offset by underspends in recoupment income from other local authorities, SEN Services, and the SEN Support budget.

The report also highlighted that Brent is participating in the Department for Education's (DfE) Delivering Better Value (DBV) in SEND programme, which aims to reform high needs systems and has provided £1 million in grant funding over two financial years. The Early Years Block underspent by £1 million, partly due to DfE in-year adjustments. The report noted a risk of potential clawback of this funding by the DfE in July 2024.

Regarding school balances, overall balances for maintained schools decreased by £1.9 million from £15 million in 2022-23 to £13.1 million in 2023-24. The report presented a mixed picture, with some schools increasing their reserves while others decreased them, and seven primary schools ending the year in deficit. The decrease in balances was attributed to factors such as falling rolls and rising inflation.

Councillor Gwen Grahl, Cabinet Member for Children, Young People & Schools, acknowledged the financial challenges faced by schools and pledged to continue lobbying for the best possible funding. The Forum RESOLVED to note the report.

Scheme for Financing Schools & Schools Financial Regulations 2024-25

Folake Olufeko, Head of Finance, presented the updated Scheme for Financing Schools and Schools Financial Regulations for the 2024-25 financial year. The report detailed changes implemented following an initial update in February 2024, primarily focusing on the introduction of a new accounting standard for Local Authorities from April 2024. This standard ends the distinction between operating and finance leases, meaning schools will need Local Authority approval for leases outside a specified list provided by the DfE.

The Scheme for Financing Schools for 2024-25, attached as Appendix A, included updated summaries of changes in Appendix B. The Schools Financial Regulations for 2024-25, detailed in Appendix C with summary changes in Appendix D, were also presented. These changes were to become effective immediately following Schools Forum approval and consultation.

The Forum RESOLVED that the maintained schools' representatives on the Forum approve the amendments to the Scheme for Financing Schools 2024/25 and note the Schools Financial Regulations 2024/25.

Brent Mainstream School's Banding Matrix Review

Shirley Parks, Director of 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 review followed benchmarking exercises and research with the High Needs Block Subgroup and Early Years colleagues.

Emma Ferrey, SEND Commissioning Consultant, presented the detailed proposals, recommending Option 3, which involves introducing the proposed RAS for all children and young people with an EHCP from age 0-25 years in mainstream schools and settings, including Additional Resource Provisions (ARPs). This system aims to move from an hours-led to a needs-led, provision-based approach to funding.

The report highlighted that SEND Assurance work, conducted as part of the Delivering Better Value (DBV) Programme, indicated that up to 80% of EHCPs with 26 hours or more of support were overallocated. Benchmarking showed Brent's funding for school-age children with SEND was in line with neighbouring authorities, but significantly higher for early years provision. Other local authorities, such as Greenwich, have already implemented similar matrix banding schemes with positive feedback.

The proposed SEND RAS would be applied across mainstream and ARP placements in early years, schools, and Further Education institutions. The descriptors for the RAS in early years would be adapted, increasing the funding bands from two to four. For FE places, the RAS banding would be applied, potentially reduced to reflect fewer hours. ARPs are expected to receive the highest level of top-up funding, with vacant places funded at £10,000.

The report outlined three options considered for savings: Option 1 (do nothing), Option 2 (continue with the current system and apply SEND Assurance Review work), and Option 3 (introduce the proposed RAS). Option 3 was recommended as it would create a needs-led system, improve transitions, and is expected to generate savings similar to Option 2, while also addressing the under-funding of some ARP placements.

The preferred implementation approach is a partnership between the LA and schools/settings to introduce the RAS by April 2025, subject to consultation with schools and settings in September 2024.

During the discussion, Raphael Moss expressed concern about the potential impact on his school's ARP, seeking further detail on the SEND assurance work. Concerns were also raised about delays in the EHCP process and financial shortfalls experienced by schools. Shirley Parks offered to share SEND assurance work and liaise with Raphael Moss to address specific issues.

The Forum RESOLVED to approve Option 3 to introduce the proposed Resource Allocation System (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 with schools/settings to implement the RAS by April 2025, subject to consultation and a further report on the outcome.

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 was raised via email from Nick Cooper regarding the 3.4% increase applied to SEN additional funding and its impact on previous years' funding. Folake Olufeko advised that a detailed response would be provided outside the meeting, clarifying that the 3.4% increase also applied for 2024-25.

Dates of Future Meetings

The schedule of future meetings for 2024-25 was noted, with a change to the June meeting being offered as a hybrid format. The next meeting is scheduled for Thursday 14 November 2024.