Agenda item

Members to note the 2021/22 High Needs Block Grant outturn.

The Forum received a report for information in relation to the High Needs Block (HNB) 2021/22 Outturn position.

The Final HNB Grant settlement for 2021/22 was £53.555m after deductions for academies recoupment and direct funding of high needs places by Education Skills and Funding Agency.

The carry forward balance on the HNB as at 31st March 2021 was £0.597m surplus. 

Table 1 provided a breakdown of the HNB budget of £53.555m; the gross expenditure as at 31st March 2022 was £52.075m; with HNB grant and other income of £55.409m, giving an in-year underspend of £3.333m.

Table 1 - HNB 2021/22 Outturn

The main variances were as follows: -

•        Out of Borough Placements – An underspend of £0.253m was due to a delay in pupils being placed in independents educational establishments and pupils leaving during the spring term.

•        Post 16 Colleges – When the budget had been prepared an allowance was made for new students and in year admittances. The underspend of £0.545m related to a reduction in the amount of Element 3 top up claimed by some mainstream colleges and a reduction in the request for funding to attend college.

•        Support for Inclusion – the underspend of £0.561m was due to staff vacancies and part-year vacancies due to staff turnover as well as maternity leave.  Also included monies for Secondary Preventing Exclusions team which would transfer from 1st April 2022 to the Fair Access + Exclusions and Secondary Reintegration Team.

•        Alternative Provision – the underspend of £0.509m was due to the close monitoring and decisions made at the LA Alternative Provision Panel which had been instrumental in reducing expenditure during the year and controlling the number of pupils placed in alternative provision settings.  

•        SEN Developments – was showing an underspend of £0.919m.  This budget head currently covered independent appeals and reports, and any funding agreed that did not clearly fit onto any other budget head.  The variance was predominantly the HNB balancing figure of £440k, which was the difference between the calculated budgets as at 1 April 2021 and the HNB Grant initial settlement 2021/22 and a favourable amendment to the Grant of £315k

•        Other SEN Funding – The underspend of £0.407m was due to resolution not to fund CWD and underspend in non-statutory services.

The cumulative carry forward balances for 2021/22 was £3.930m surplus after accounting for the £0.597m surplus from 2020/21.

M Arnull requested an update on the current status of the Alterative Provision / Fair Access Panel in view of the underspend, in terms of recruiting to vacant posts.

M Tallents advised that adverts for those posts had now gone out and interviews would be taking place in the near future.

D Broadbent, in referring to the underspend on children with Special Education Needs, enquired why there was underspend, as such funding was urgently required in schools.

M Tallents advised that the underspend related to vacant positions and recruitment was currently underway to employ an Educational Phycologist (EP).  It was envisaged that one EP would be recruited this year and a further two next year.  In addition, she confirmed that the underspend would be carried forward to next year for this reason and due to the fact that EHCPs and specialist places were increasing.  However, M Tallents advised that there was a national shortage of EPs, so this may impact upon such plans.

The Chair referred to the modelling and that Government supported and funded the requirement for specialist places.  Within the financial assumptions, the Chair enquired how the models predicted the increase in the number of children issued with EHCPs.

M Tallents advised that the models had looked at the increase in such matters over the last 5 years.  In addition, the models also consider the increase in populations over time to predict the requirements going forward.  The models suggested that by 2025 there would be approx. 3500 EHCPs.  This model had not specifically looked at special placements, as the figure received for such matters tended to even out over time.  However, within in the Specialist Placement Planning Strategy there had been an increase in order to model the budget accurately.  In addition, the DfE had indicated as an increase next year for the HNB would be 0.5%.  The LA had, therefore, within the latest modelling for Specialist Placement Planning Strategy, added a 0.5% increase year on year.

Agreed that the report be noted.