The Children's Overview and Scrutiny Committee met on Wednesday 25 June 2025 to discuss the Dedicated Schools Grant (DSG) Recovery Strategy, the End-Year 2024-25 Performance Report, the Work Programme, and the Children's Services General Fund Outturn Position for 2024-25. Key discussions included the financial challenges within the Dedicated Schools Grant, performance updates across children's services, the future direction of scrutiny work, and the final financial outturn for the year.

Dedicated Schools Grant (DSG) Recovery Strategy

The committee received an update on the Dedicated Schools Grant (DSG) Recovery Strategy, which outlined the significant financial challenges faced by schools and the plan to address the grant's deficit. Officers explained that the deficit was driven by several factors, including a global decline in birth rates, increased economic difficulties for UK families, and a national rise in Education, Health and Care Plans (EHCPs), particularly for younger children affected by the pandemic. A correlation between deprivation and increased educational needs was also highlighted.

The Director of Education noted that while the Department for Education (DfE) was reviewing the EHCP system, no confirmed changes had been announced, and any proposals would be subject to consultation. The council's primary approach remains to ensure children receive timely support, thereby reducing the need for EHCPs.

Several strategies have been implemented to address these challenges and reduce the deficit. These include early intervention programmes, the Nursery Inclusion Project for All (NIPA), transition support, the use of school resource bases, upskilling school staff, challenging inflationary fee increases, expanding special school places, and creatively utilising underused school spaces to reduce reliance on independent school placements. Officers confirmed that an inclusive, universal engagement approach was in place to support all state schools, including academies.

Regarding early years provision, the Early Years Team had visited all nursery providers to assess support needs for staff and children aged 0-5. Collaboration between midwives, health visitors, early years Children and Adolescent Mental Health Services (CAMHS), family hubs, and social care teams was ongoing.

In response to questions about EHCP tribunals, the Director of Education explained that plans were developed in close co-production with families to ensure their understanding of decisions. Despite high caseloads and the use of AI for administrative tasks, the focus remained on strengthening relationships with families and professionals to produce high-quality plans. The existence of a two-tier SEND system in the UK, where access to legal support for appeals varied, was acknowledged.

Regarding exclusions, particularly for children with SEND, officers stated that the council worked with all schools to reduce exclusions, though they remained a last resort. While national data indicated children with SEND were more likely to be suspended, Wandsworth's suspension rates for SEND support and EHCP pupils across all phases placed it in the top quartile of English local authorities. Pupil Services provide advice to parents, carers, and schools on exclusion processes, with governing bodies having a duty to consider parental representations.

The report was received for information.

Children's Services End-Year 2024-25 Performance Report

The committee reviewed the End-Year 2024-25 Performance Report, which provided an update on the Wandsworth Corporate Plan actions and Key Performance Indicators (KPIs).

Child Protection Plans: The Director of Children's Social Care reported that the number of families with a Child Protection Plan lasting over two years was small, with clear plans and regular visits in place to assess risks and offer interventions. Court proceedings could sometimes extend timescales.

Early Years Provision: Officers confirmed that sufficiency of early years places had been reviewed and found adequate. They acknowledged that initial figures for vulnerable two-year-olds in early years providers might not reflect the current situation due to ongoing promotional work, and expressed confidence that future data would show an increase in uptake.

Foster Care: The Director of Children's Social Care addressed questions about reducing agency foster care costs, explaining that while efforts were made to keep families together, complex needs sometimes necessitated external placements. The council was actively recruiting foster carers and providing training and support, while also relying on independent foster carers to meet demand.

Child and Family Assessments: Assessments were closely tracked with social worker supervision to meet statutory timeframes.

Missing Children: A multi-agency approach was employed when children went missing, involving strategy meetings with the police and other agencies to develop specific plans. Monthly meetings focused on exploitation and preventative measures. Work with hotels and businesses to raise awareness of exploitation signs was ongoing.

Youth Partnerships: The Director of Children's Place and Partnerships reported that a comprehensive list of youth community and voluntary sector provision was being compiled, with ongoing efforts to increase engagement through peer support, the Youth Network, and cluster coordination.

Financial Support for Families: Officers explained that a one-size-fits-all approach to financial support was not feasible due to varying community needs. The council offered a generous school uniform voucher scheme, and schools were adapting their support. The baby box scheme was highlighted as a valuable resource for newborns, contributing to reduced health and social inequalities.

Education, Health and Care Plans (EHCPs): The Director of Education confirmed that the council had met the statutory requirement to complete EHCP assessments within 20 weeks in 100% of cases, despite rising demand. The quality of EHCPs was audited with health professionals and the Parent/Carer Forum. The Director agreed to share the quality assurance managers' report and quality data with the committee.

Digital Inclusion and Library Hours: Councillor Gasser noted that the Environment OSC had recently discussed library opening times and strategies to manage demand, particularly during exam periods.

School Inspections and Closures: Officers described a proactive approach to supporting schools with Ofsted inspections, including the involvement of high-quality link advisors. Regarding potential maintained school closures due to financial pressures, officers stated that financial and building support was available. School closures were a last resort, and the council would work with both maintained schools and academies, though the process differed for academies. Families and staff affected would be supported compassionately through any consultation and post-decision actions. For recent proposed closures, all pupils had secured alternative placements.

Social Workers and Staffing: The Director of Social Care reported on measures to further reduce the number of agency social workers, noting that current levels were already very low. Investment in training, support, career development, and workspace had contributed to staff recruitment and retention, receiving positive feedback.

Resident Engagement: The Director of Children's Place and Partnerships detailed various methods used to engage residents and ensure their voices were heard, including Parent Champions, family hubs, feedback groups, and direct conversations. Those with lived experience of social care were involved in improving communication materials and participating in staff interview panels.

Year of Play: The Director of Children's Place and Partnerships highlighted the successful launch of the Year of Play, with numerous online and in-person initiatives planned to promote play and improve play spaces. The Holiday Activities and Food (HAF) programme was also a key focus. Significant investment had been made in play facilities across housing estates and through partnerships.

The report was received for information.

Work Programme

The Committee considered the Work Programme report, presented by the Director of Law and Governance. The Democratic Services Manager explained that the paper outlined the framework for the new scrutiny process. Councillor Osborn endorsed the proposed model and framework, believing it would enhance scrutiny and lead to improvements for residents.

The Chair outlined the next steps, including a meeting with the opposition lead in early July to decide on topics for scrutiny, with the first report expected in September.

RESOLVED – that the report be received for information.

Children's Services - Final Outturn Position FY 2024-25

The Committee reviewed the final financial outturn position for Children's Services General Fund for FY 2024-25.

The Assistant Director of Schools Finance reported that the final overspend was £0.485 million against a budget of £97.012 million, a slight increase from the Quarter 3 forecast. Officers attributed the underspend in Business and Resources (£1.323 million) to ring-fenced grant income, restructuring savings, and staff vacancies. They also highlighted a reduction in SEN transport costs due to stabilising inflation and falling petrol prices, alongside an increased focus on local provision and independent travel training.

The overspend within Children's Social Care (£2.329 million) was primarily driven by the Supporting Disabled Children Service (£1.784 million) due to the cost of agency home care and residential school placements, and CLA Placements (£2.589 million) due to residential and semi-independent placements and home-to-school transport. The increasing complexity and demand for high-cost placements, coupled with market inflation and limited supply, were identified as key cost pressures.

Officers outlined mitigating actions for future years, including reviewing transport contracts, promoting independent travel training, implementing a care framework for procuring agency home care, maximising health contributions, reviewing care packages, and managing bed occupancy. For CLA Placements, a weekly care panel reviews all packages, and the council is exploring discounts and savings through the regional Commissioning Alliance.

The forecast for FY 2025-26 is for the Children's Services General Fund budget to break even. Key risks identified include ongoing rises in SEN transport demand, increased complexity of needs for disabled children, and the volatile market for CLA placements.

RESOLVED – that the report be received for information.