The Overview and Scrutiny Management Board met on Thursday, 26 February 2026, to discuss the proposed Crisis and Resilience Fund and the council's financial performance for the third quarter of the 2025/26 financial year. The Board also reviewed the work programmes of various scrutiny committees and its own forward plan.

Crisis and Resilience Fund

The Board considered the proposed approach to implementing the new three-year government Crisis and Resilience Fund (CRF), which will replace the Household Support Fund and Discretionary Housing Payments from April 2026. Anne-Marie Scott, Assistant Director of Public Health, presented the report, outlining that Lincolnshire is provisionally allocated £9.9 million per year for the first two years, rising to £11 million in the third year. The fund has four delivery strands: crisis payments, housing payments, resilience services, and community coordination.

A significant portion of the discussion focused on the cash-first approach to crisis payments, with several councillors expressing concerns about potential abuse and the lack of a mandatory receipt requirement. Anne-Marie Scott clarified that while cash is the default, other forms of support like supermarket vouchers or direct provision of goods would be used where appropriate, based on individual assessments. The council is working with its audit team and the Department for Work and Pensions (DWP) to establish proportionate safeguards.

Concerns were also raised about the tight timescales for implementing the new scheme, with guidance only published in January for an April start. The report recommended delegating authority to the Executive Director of Adult Care and Community Wellbeing, in consultation with the Deputy Leader, to finalise the delivery plan. Several councillors requested that the finalised scheme details be brought back to the committee for review.

The housing payment element of the fund will remain with district councils for the first two years, with funding moving to upper-tier authorities in year three. Councillor Cain Parkinson raised concerns that this shift would add bureaucracy and delay support for vulnerable residents who already have established relationships with district council officers.

The Board was assured that the scheme is only available to those with recourse to public funds and that local authorities have discretion in shaping eligibility criteria, such as maximum household income and savings thresholds. The split of funding between county and district councils is still being determined, but it is anticipated that around 40% will be distributed via district councils.

The Board resolved to be assured on the progress in developing the Crisis and Resilience Fund and agreed to receive a progress update at a future meeting.

Review of Financial Performance (2025/26 Quarter 3)

Michelle Grady, Chief Finance Officer, presented the council's financial performance for the third quarter of the 2025/26 financial year. The report indicated a forecast underspend of £6 million across general fund services, with a significant overspend of £30 million on the Dedicated Schools Grant (DSG), primarily driven by pressures in the high needs block.

Councillor Brooks questioned whether the £6 million underspend was due to cautious budget setting or genuine efficiencies, and whether service delivery had been impacted. Michelle Grady explained that efficiencies built into the budget had been delivered and that the underspend was largely due to contingency.

The £29 million overspend on the DSG was highlighted as a ring-fenced budget, and it was noted that the council was one of the few authorities not to have a structural deficit registered in this area. However, the report indicated that Lincolnshire was now forecasting a deficit position. The government's SEND reforms were mentioned as a potential solution to address these problems.

Councillor Hill raised concerns about the £1.5 million transfer from the Public Health reserve to Children's Services, seeking assurance that this was legal and compliant with grant conditions. Martin Samuels, Executive Director of Adult Care and Community Wellbeing, confirmed that discussions were ongoing with the Regional Director of Public Health to ensure compliance and that the transfer was considered possible.

Significant discussion also took place regarding the capital programme, with an £11 million projected underspend. Councillor Dilks questioned why school places were not being built if funding was available, and Councillor Vernon expressed concern about the Highways budget underspend and its potential reallocation. Nicole Hilton, Assistant Director of Highways, explained that the underspend was largely due to the timing of programme delivery and the deferral of planned works due to drought damage and reactive maintenance.

The committee also discussed the financial performance of various services, including Children's Services, Adult Social Care, Highways, and Waste. Concerns were raised about the increasing demand and costs in children's and adult social care, with assurances given that medium-term financial planning and transformation programmes were being adjusted to manage these pressures. The volatility of energy prices and their impact on waste income was also discussed, with Nicole Hilton explaining the savings expected from the introduction of food waste collections.

The Board resolved to note the forecast outturn position for revenue and capital and consider mitigations.

Scrutiny Committee Work Programmes and OSMB Work Programme

The Board reviewed the work programmes of the various scrutiny committees, including Adult Care and Public Health, Children's and Culture, Community Safety, Environment, Growth, Health Scrutiny for Lincolnshire, and Highways and Transport. Councillor Vernon expressed concern about the lack of planned activity in the Highways and Transport Scrutiny Committee's work programme.

Councillor Dilks proposed that a review of the council's scrutiny process itself be added to the OSMB's work programme, suggesting that it was overdue and particularly relevant given the new administration. Councillor Hill supported this, emphasizing that scrutiny should be led by councillors, not the Executive. Councillor Hill also suggested that the OSMB, given its financial remit, should consider an agenda item to gain assurance from Children's Services regarding cost control, separate from service delivery.

The Board noted the work programmes and agreed that amendments should be reflected in future iterations. A request was also made for a briefing document on the activities of the Greater Lincolnshire Combined County Authority (GLCCA) to be programmed.

The meeting concluded with the Board resolving that the report to the executive has been considered and all comments in relation to the report will be passed over and captured by the health and scrutiny of a city report to the executive head of its consideration on the 3rd of March.