Buckinghamshire Council's Schools Forum met to discuss the Dedicated Schools Grant (DSG) revenue monitoring for 2024-25, which showed a significant overspend in the high needs block, and to hear an announcement regarding the statutory override¹ for high needs funding. The forum also noted that they would be looking to re-elect co-chairs in the autumn.

High Needs Block Funding

The forum received an update on the Dedicated Schools Grant (DSG) revenue monitoring for 2024-25 from Sarah Fogden, Head of Finance, Children's Services. The report highlighted a £17.7 million overspend, primarily within the high needs block, resulting in a cumulative deficit of £47 million. The projected deficit for the current year is £22.9 million, with forecasts suggesting annual deficits of £30-35 million in the coming years.

The overspend in the high needs block is attributed to increased demand for support and a shortage of suitable school placements. This has led to overspending across various budget lines, including:

• SEN (special educational needs) top-ups to mainstream schools, with an overspend of £2.2 million
• Special schools, with an overspend of £4.5 million, mainly due to annual reviews identifying increased support requirements for pupils
• Independent settings, with an overspend of £3.4 million due to commissioning 85 additional places
• Alternative provision, with an overspend of £5.8 million as approximately 320 more young people than budgeted are being supported through dedicated wraparound packages

Bradley Taylor, Special School Representative, questioned the report's assertion that the overspend in special schools was mainly due to annual reviews of young people, but Sarah Fogden, Head of Finance, Children's Services, clarified that the budget was set based on projected pupil numbers and banding, and the council has seen children with greater needs in special schools than anticipated.

Laura Morel, from Seer Green School, asked how long it would take for the deficit to reduce, given rising costs and increasing numbers of children needing support. Gareth Drawmer, said that the council plans to create an additional 500 places in Buckinghamshire, but Caroline Marriott acknowledged that it was difficult to give a specific date for when the trajectory would turn around, citing the complex national picture and the need for local efforts to control spending.

Janice Freeman asked about underspending in the high needs block associated with early years pupils. Sarah Fogden, Head of Finance, Children's Services, explained that the underspend was likely due to a lower volume of children supported through the fund than budgeted. Sue Bayliss said that there are a number of reasons why very young children do not come through with education, health and care plans (EHCPs), including backlogs with health colleagues, changes in GP surgeries, and parents not being ready to proceed with assessments.

A headteacher from Henry Allen Nursery School said that they had boys waiting over a year for an EHCP, and that funding was not coming through to schools.

Sarah Fogden, Head of Finance, Children's Services, alerted the forum to the possibility of a block transfer, which would involve transferring funding from schools to high needs.

High Needs Block Statutory Override

Gareth Drawmer, provided an update on the government's announcement regarding the statutory override, which allows the council to ring-fence the high needs block deficit outside of the overall council budgets. The override has been extended to the end of the financial year 2027-28. He noted that the Department for Education (DfE) is expected to release a white paper in the autumn outlining SEND (special educational needs and disabilities) reforms.

Gareth Drawmer, acknowledged that the statutory override is not a solution to the underlying problems and that serious conversations are needed at a national level to address the growing deficits in high needs funding.