Issue - meetings

This paper provides the 2024/25 outturn for the Dedicated Schools Grant (DSG) high needs block, budget agreed for 2025/26 and actions being undertaken to manage the budget within a challenging national framework. 

The outturn for 2024/25 was high needs expenditure of £111.9m compared with funding of £62.0m (a DSG funding gap of £49.9m) This was £5.3m more than reported to Cabinet in February 2025. There were some non-recurring payments made in the final months of the year that had not been included in the forecast but some of the increase is likely to be ongoing as more young people were being supported by the high needs budget by March 2025 than had been expected.

The high needs budget for 2025/26 was set with the expectation that the annual funding gap would grow to £57.5m as demand growth was expected to continue to outstrip funding growth. There are initiatives in the SEND improvement plan (some being invest-to-save) that should have an impact on the high needs budget over time, and these are set out in this report.

Work is in progress to establish the expenditure forecast outturn for 2025/26. Placements for the new academic year are in the process of being finalised for those new in the system, at transition ages, or requiring a change for other reasons. The forecast will also be updated to reflect progress on service initiatives currently underway or being developed.    

RESOLVED that Cabinet noted the contents of the report.

Voting: Unanimous

Portfolio Holder: Children’s Services

Reason

This is an information report.

The Portfolio Holder for Children’s Services presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'K' to these Minutes in the Minute Book.

Cabinet was advised that the paper provided the 2024/25 outturn for the Dedicated Schools Grant (DSG) high needs block, budget agreed for 2025/26 and actions being undertaken to manage the budget within a challenging national framework. 

Cabinet was informed that the outturn for 2024/25 was high needs expenditure of £111.9m compared with funding of £62.0m (a DSG funding gap of £49.9m), this was £5.3m more than reported to Cabinet in February 2025.

In relation to this Cabinet was informed that there were some non-recurring payments made in the final months of the year that had not been included in the forecast but some of the increase is likely to be ongoing as more young people were being supported by the high needs budget by March 2025 than had been expected.

Cabinet was advised that the high needs budget for 2025/26 was set with the expectation that the annual funding gap would grow to £57.5m as demand growth was expected to continue to outstrip funding growth, and that there are initiatives in the SEND improvement plan (some being invest-to-save) that should have an impact on the high needs budget over time, and these are set out in this report.

Further to this Cabinet was advised that work is in progress to establish the expenditure forecast outturn for 2025/26. Placements for the new academic year are in the process of being finalised for those new in the system, at transition ages, or requiring a change for other reasons. The forecast will also be updated to reflect progress on service initiatives currently underway or being developed.    

The Chair of the Children’s Services Overview and Scrutiny Committee addressed the Cabinet advising that the Committee would be considering the paper at their meeting in September. Further to this the Chair congratulated the progress made and whilst understanding the financial pressures emphasised the importance of the services provided.

The Portfolio Holder thanked the Chair for their comments and advised that he was looking forward to the input from the Childrens Services Overview and Scrutiny Committee.

RESOLVED that Cabinet noted the contents of the report.

Voting: Unanimous

Portfolio Holder: Children’s Services

Reason

This is an information report.