Agenda item

The Committee considered a report of the Director of Children and Family Services which set out a proposal to seek a transfer of funding from the Schools Block to the High Needs Block of the Dedicated Schools Grant and the funding to be used for the establishment of a Special Educational Needs (SEN) Investment Fund to deliver targeted actions in order to reduce the increase in the number of Education, Health and Care Plan (EHCPs) and reduce the annual overspend. A copy of the report marked ‘Agenda Item 10’ is filed with these minutes.

In introducing the report, the Director reported that:

The Leicestershire Schools’ had met on 4 November 2024 where it voted to refuse the transfer of funding from the Schools Block to the High Needs Block of the Dedicated Schools Grant and the funding to be used for the establishment of a SEN Investment Fund. This decision reflected continued opposition to the proposal since it first received a report on the matter in June 2024. Consultation feedback on the proposed SEND Investment Fund were largely focused on disagreement to the transfer of funds. The Schools’ Forum had been clear that it opposed the transfer as it would represent a decrease in funding for schools. It would support funding going to schools to support SEND inclusion but not by utilising the Schools Block Transfer in order to create a fund for this.

The Director advised members that it was intended to submit a report to the Cabinet regarding pursuing the transfer with the Secretary of State as the High Needs deficit facing the Authority was not sustainable.

Arising from Discussion, the following points were raised:

(i)             In response to questions, the Director explained that the funding transfer would not be used simply to offset the High Needs deficit but to enable measures to reduce the number of EHCPs being issued and support SEND inclusion in schools (as had been done by other local authorities), and it was proposed that the Investment Fund would be governed by schools. Details of the planned Investment Fund remained to be confirmed, as it had not been progressed further in light of opposition to the transfer.

(ii)            Members noted that a previous request for a funding transfer had been refused as no evidence of reinvestment in mainstream schools had been provided. The Council continued to work with schools to develop inclusive SEND provision and should the Secretary of State approve a funding transfer then further consultation would be held with schools on development of an Investment Fund. The Council would have waited for the new Government’s approach to tackling issues within the SEND system to be clarified but in order to comply with statutory processes and deadlines for the 2025/26 capital programme it was necessary apply to the Secretary of State at the earliest opportunity.

(iii)          The Cabinet Lead Member for Children and Families agreed with the Director that the situation was difficult and complex, and that more Government funding was required to support children with SEND. The Council’s financial position had left it little alternative but to seek a funding transfer to help address the High Needs deficit.

RESOLVED:

(a)            That the proposal to seek a transfer of funding from the Schools Block to the High Needs Block of the Dedicated Schools Grant and the funding to be used for the establishment of a Special Educational Needs (SEN) Investment Fund to deliver targeted actions in order to reduce the increase in the number of Education, Health and Care Plan (EHCPs) and reduce the annual overspend, be noted.

(b)            That the Cabinet be advised of the comments made by the Children and Families Overview and Scrutiny Committee on the proposal to seek a transfer of funding from the Schools Block to the High Needs Block of the Dedicated Schools Grant.