Agenda item

This report analyses the latest performance for 2020/21 and forecasts the financial outturn position by reference to the service plans and budgets for all of the services falling under the responsibility of this committee.

Members considered a report that analysed the latest performance for 2020/21 and forecast the financial outturn position by reference to the service plans and budgets for all of the services falling under the responsibility of the committee.

The Head of Finance (Adults, Children & Education) and Corporate Director of People were in attendance to present the report. The Head of Finance (Adults, Children & Education) advised Members that there was a net overspend of £2,595k was forecast primarily due to children’s social care. He highlighted that:

·        In addition to the effects of Covid-19, the Home to School Transport budget was already in a historic overspend position of approximately £200k.  The savings targets for the SEN element of home to school transport had not been achieved because of a growth in the number of pupils/students requiring transport and the specialist requirements of that transport. 

·        The Designated Schools Grant (DSG) position at 1st April 2020 was a deficit of £4.865m.  Current predictions on High Needs and Central Services Block expenditure indicated that this deficit could grow to £10m by the end of the financial year, due to the continuing increase in High Needs numbers, and increasing complexity, requiring expensive provision. 

In response to questions from Members, the Head of Finance (Adults, Children & Education) and Corporate Director of People explained that:

·        An audit of the support plans for children found that a proportion need increasing protection. This rise was typical of an improvement journey and the numbers in the child protection system had significantly reduced, as had the numbers coming into the system.

·        As part of the improvement journey a multiagency hub was created in August 2019. This had been kept under review and the quality of practice was much better.

·        It had to be ensured that placements were right for the child. There was a permanence strategy in place. This would either be reported to this Committee or the Corporate Parenting Board.

·        The process by which placements were match through social work and care planning.

·        Concerning the numbers of children placed in an extended family setting, this was individual to the needs of the child and their journey through the care and support process.

·        The rationale for residential schooling was made in the interests of the child and not for financial reasons. There were 8 children in transition back to a York setting for a 38 week a year placement.

·        The transition from a 52 to 38 week placement was dependent on the needs of the child and there was a range of interventions offered for the transition process.

·        The proportion of additional costs incurred offset by government funding was £1.2m in this monitor.

·        The temporary and agency staffing position would continue to the end of year and would contribute to the variations.

·        Expenditure was only where required and spend was high in placement spend and staffing costs as a high proportion of young people in placements were aged 15 or above. The staffing position was challenging and the council was growing its own frontline social worker. An update on this was given.

·        Clarification was given on contacts contracted out of York.

·        The overspend on legal fees was due to the legal costs of children being on proceedings.

·        The DSG was used for variety of areas agreed with the Schools Forum.

·        Lobbying for the SEND review was undertaken by a number of organisations including the Association of Directors of Childrens Service and the Local Government Association. DfE colleagues had advised that this was a priority and was imminent. It was noted that there was a SEND Board of which a parent and carer group was an equal partner on the Board.

·        Benchmarking with other councils had begun.

Following questions Members then;

Resolved: That the update on the latest financial position for 2020/21 be noted.

Reason:     To be updated on the latest financial position for 2020/21.