Agenda item

This report responds to the Children’s Services Overview & Scrutiny Committee’s second set of KLOEs on High Needs Block (HNB) “invest?to?save” activity. It distinguishes: (i) initiatives funded from HNB (which impact the in?year position unless offset by savings) and (ii) initiatives funded from the General Fund or external grants (which do not worsen the HNB position but can drive service improvement and future cost avoidance). It summarises delivery to date (including sufficiency expansion and early?years interventions), the emerging impact, the approach to measuring cost avoidance, and the new initiatives now in development.

The Director of Education and Skills presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'B' to these Minutes in the Minute Book.

This report responded to the Children’s Services Overview & Scrutiny Committee’s second set of KLOEs on High Needs Block (HNB) “invest?to?save” activity. It distinguished: (i) initiatives funded from HNB (which impacted the in?year position unless offset by savings) and (ii) initiatives funded from the General Fund or external grants (which did not worsen the HNB position but could drive service improvement and future cost avoidance).

It summarised delivery to date (including sufficiency expansion and early?years interventions), the emerging impact, the approach to measuring cost avoidance, and the new initiatives then in development.

The Committee discussed the report, including:

• In response to a query raised regarding forthcoming national SEND reforms, the Committee was advised that the White Paper was expected in early February and that the Council continued to work closely with the Department for Education to ensure alignment with anticipated changes.
• In response to a query raised regarding the extent to which the Council was preparing for a possible shift in the EHCP funding model, the Committee was advised that early intervention work, multi?agency support, and strengthened oversight structures were already consistent with the direction suggested through engagement with the Department for Education. Funding arrangements would become clearer following publication of the national proposals.
• In response to a query raised regarding confidence in delivering additional specialist and resource provision, the Committee was advised that strong interest had been received from primary schools, and renewed engagement with secondary schools had resulted in nine schools expressing interest in developing resource provision. Demographic changes were also supporting the availability of accommodation.
• The Committee was advised that the Portage service team was fully staffed, well?coordinated, and worked closely with early years partners to ensure earlier identification of need and appropriate placements. Officers agreed to circulate information on the Portage service to Members and, if helpful, arrange a short briefing session on the service. ACTION
• In response to a query raised about digital improvements, the Committee was advised that planned enhancements to SEND case management and high needs funding systems were essential, supporting clearer oversight and more consistent decision?making.
• The Committee was advised, in response to further queries, that regional learning continued to inform the programme, including forthcoming engagement with Southampton regarding targeted funding models.
• In response to a query raised regarding how future national requirements would be incorporated, and the Committee was advised that a maturity matrix was expected following publication of the White Paper, and that a further update could be brought to the Committee in September once partnership self?assessment activity had been completed.

RESOLVED that the update be noted, and that a further update be brought to the Committee at the September 2026 meeting, following national reforms and associated partnership assessment work. ADD TO WORK PLAN

RESOLVED that the Committee agreed the following recommendations and that they be passed to Cabinet:

a.)  Note the current High Needs Block (HNB) position and the impact and cost avoidance of the initiatives implemented to date including the increased supply of specialist places, the early years inclusion model (Dingley’s Promise) and the positive impact of the Portage Service.

b.)  Endorse the invest-to-save programme and the establishment of the High Needs Block Deficit Recovery Plan Board, including its role in approving a benefits-measurement framework to evidence cost avoidance and prevent double-counting across initiatives.

c.)  Support the progression of the following priority initiatives:

·       Digitalisation of High Needs funding processes (integrated with the SCM upgrade)

·       Synergy Case Management (SCM) upgrade to go-live (target May–June 2026)

·       Pre-EHCP targeted funding model (subject to affordability and governance)

Voting: Nem. Con.