The Scrutiny Children & Young People Sub-Committee met to discuss the Children, Young People and Education (CYPE) Directorate's budget proposals for 2026/27 and received an update on transformation efforts within the directorate. Key discussions included the appointment of a strategic transformation partner, the education estates strategy, and performance dashboards for early help, children's social care, and education.

CYPE Budget Challenge

The committee reviewed the budget proposals for the Children, Young People and Education (CYPE) Directorate for the 2026/27 financial year. The 'Helping Families Thrive' programme, a significant transformation initiative, underpins many of the projected savings, aiming to improve practice, manage demand, increase effectiveness, and enhance efficiency through five workstreams: Early Intervention & Prevention, Sufficiency, Data & Digital, Families First Partnership, and Workforce, Leadership & Culture.

Demographic growth and market cost pressures were identified as key drivers for budget increases, particularly in SEND and Children's Social Care. For SEND travel assistance, a 7.4% annual increase in passengers was modelled, impacting the £22.1 million external budget. Children's Social Care growth is influenced by ONS population data, an expected 1% increase in children in care, and rising complexity and costs of residential placements. Mitigations for placement inflation include opening in-house children's homes, expanding fostering, and challenging high-cost placements through a Best Value Panel.

Significant budget risks were highlighted, including a funding gap for Unaccompanied Asylum-Seeking Children (UASC) due to inadequate national funding models and legacy volumes. Placement inflation for complex needs and rising SEND travel demand also pose risks. A £0.4 million slippage in Health (Continuing Healthcare) contributions is contingent on a new joint-funding agreement with the Integrated Care Board (ICB). The delivery of 'Helping Families Thrive' savings is also subject to risks related to timely implementation, workforce stability, and digital adoption.

The committee noted that the 'Helping Families Thrive' programme is projected to deliver structural savings through early help, sufficiency shifts, and workforce/digital efficiencies. The opening of 'Precious House', a new children's home, is expected to create savings and avoid costs. Savings are also anticipated from reviewing funding sources for the School Place Planning team, reallocating grant funding to cover salaries.

Children, Young People and Education (CYPE) Directorate Transformation Update

The committee received an update on the transformation work within the CYPE Directorate, focusing on the 'Helping Families Thrive' programme and the process of appointing a Strategic Transformation Partner. The programme aims to create a sustainable model for children's services by improving practice, managing demand, increasing effectiveness, and enhancing efficiency. This is being achieved through five workstreams: Early Intervention & Prevention, Sufficiency, Data & Digital, Families First Partnership, and Workforce, Leadership & Culture.

Key progress includes the inspection of 'Precious House', a new children's home, and the tendering process for a second children's home. A Head of Homefinding, Commissioning, Placements, and Brokerage has been appointed, and a 'My Needs Assessment' tool has been developed to inform cost reduction and reunification discussions. Trials of AI summarisation in Special Educational Needs (SEN) are also underway.

Croydon Council is seeking a Strategic Transformation Partner with a proven track record in challenging local government contexts to accelerate these efforts. The partner will be expected to work at pace, bring additional expertise, and help the directorate go further and faster. The engagement will be in two phases: Phase One (Understand, Design, & Plan) and Phase Two (Trial, Implement, & Sustain). A critical 'Go/No-Go' decision will be made at the end of Phase One, based on the partner's performance, their detailed proposal for Phase Two, and the expected return on investment. Payment for Phase One will be based on the successful completion of specific outputs, including an end-to-end service design, a table of prioritised opportunities, and a transformation plan. Phase Two payments will be based on the delivery of demonstrable cashable savings and cost avoidance, with a minimum 4:1 return on investment expected.

Concerns were raised about the potential time taken for a new partner to learn existing processes, but officers assured the committee that a key requirement for the partner is to build upon the work already completed by previous partners and existing analysis. The tender process closed on 7 January 2026, and the council is aiming for a contract to be signed within approximately a month.

Cabinet Report - Education Estates Strategy

The committee reviewed the Cabinet Paper on the Education Estates Strategy, focusing on the management of surplus school places, SEND provision, the Schools' Maintenance Plan, and the Education Capital Budget. The strategy aims to ensure Croydon continues to meet its statutory duty to provide sufficient, high-quality education and childcare places.

A declining birth rate since 2013 has led to falling pupil rolls and an oversupply of school places, particularly in primary schools, impacting school finances. In response, the council is working with schools to reduce Published Admission Numbers (PANs) and repurpose spare capacity for SEND provision, such as Enhanced Learning Provisions (ELPs). This approach aims to improve financial sustainability for schools, strengthen local SEND sufficiency, and reduce reliance on out-of-borough placements.

The strategy covers Early Years, Primary, and Secondary education. For Early Years, the rollout of extended entitlements for working families and the Wraparound Childcare Programme are key initiatives. The Childcare Sufficiency Assessment for 2025/26 indicates sufficient childcare provision across the borough, with 456 new places created for under 2s, exceeding the DfE's target. However, challenges remain regarding affordability, SEND provision, and provider sustainability due to rising costs and workforce shortages.

The proposed Admission Arrangements for Croydon's community schools for the 2027/28 academic year were presented, with no proposed changes from the previous year. Croydon will continue to participate in the Pan-London Co-ordinated Admissions scheme for Reception, Junior, Year 7, and Year 10 admissions. The report highlighted a decrease in on-time applications for both primary and secondary schools, attributed to falling birth rates and demographic changes. In-year admissions are experiencing higher than average numbers, putting pressure on schools.

The Education Capital Budget for 2025/26 to 2026/27 totals £12.48 million, funded through S106 contributions, School Condition Allocation, and Basic Needs Funding. The Schools' Maintenance Plan outlines £3.9 million for 2026/27 and £2.2 million for 2027/28, focusing on electrical, general build, health, safety, compliance, mechanical, and roof works. Efforts are being made to improve energy efficiency and decarbonise school buildings, though additional funding is required.

The Equality Impact Assessment (EQIA) for the Education Estates Strategy identified potential positive impacts, such as increased SEND capacity and improved access to childcare. However, it also highlighted risks of differential impact on certain groups, such as longer journeys or increased travel costs for disabled pupils and low-income families. Mitigation steps include using disaggregated data, undertaking decision-specific EQIAs, and ensuring equitable provision. An anti-racism lens will be applied to address persistent disparities for Black Caribbean, Black African, Somali, Eastern European, and Gypsy/Roma/Traveller children.

Early Help, Children's Social Care and Education Dashboard (October 2025) and Health Visiting KPIs (Q2 25/26)

The committee reviewed the performance dashboard for Early Help, Children's Social Care, and Education, alongside Health Visiting KPIs.

Several indicators were highlighted as 'red', including the percentage of contacts to children's services actioned within one working day, which was impacted by Wi-Fi connectivity issues at Bernard Weatherill House. The rate of local Children Looked After (CLA) per 10,000 under 18s population was slightly above target, but performing better than statistical neighbours and England. Juvenile first-time entrants to the criminal justice system showed an increase, partly attributed to police policy changes regarding weapon-related offending.

Positive 'green' indicators included a significant reduction in children on child protection plans, with the KPI for plans lasting two years or more now meeting its target. The percentage of care leavers in employment, education, or training (EET) for those aged 19-21 remained at target. Performance in issuing Education, Health & Care Plans (EHCPs) within 20 weeks showed improvement, attributed to reduced sickness absence and the recruitment of agency staff.

Discussions also touched upon the 'Croydon Cares' App' and its potential contribution to EET for care leavers, the SHiFT project for children at risk of criminal activity, and the importance of early intervention. The committee noted that health visiting KPIs would be a recurring item on the work programme.

Cabinet Response to Scrutiny Recommendations

The committee noted the Cabinet's response to recommendations made by the Sub-Committee. A recommendation regarding the sharing of how the voice of the child has been embedded in the design and operation of proposed children's homes was partially accepted. Instead of direct scrutiny panel engagement, care-experienced young people will be given the opportunity to review and comment on scrutiny reports in advance of meetings and provide feedback on how their voices are heard in business-as-usual activities.

Work Programme 2025-26

The draft work programme for 2025-26 was noted. The committee discussed potential additions, including a review of staff caseloads, recruitment and retention strategies, apprenticeships and youth unemployment, OFSTED inspection outcomes, the delivery of the Early Years and SEND strategies, surplus school places, free school meals, and updates on CYPE transformation and Family Hubs. A specific recommendation was made to add a review of the Metropolitan Police's review into child sexual exploitation cases and their implications for Croydon to the work programme.

What Difference has this Meeting made to Croydon's Children

The committee discussed the importance of incorporating the voice of parents and carers, in addition to children, into the work of various departments. A suggestion was made to visit a family hub as a potential starting point for engaging with families. The committee also noted the ongoing transformation work and the commitment to improving services for children and young people in Croydon.