Steven Prytherch, Senior Finance Business Partner, introduced the report of the Director of Children, Families and Education which set out the budget performance for Children, Young People and Education and the projected year-end revenue position as reported at Q3 2020/21.

It was reported that the overall financial forecast for Children, Young People and Education showed a full year favourable position of £0.433m, which was a significant change to the forecast at the previous quarter of an adverse position of £2.058m. The Committee was advised that national assumptions for additional demand for Children’s Social Care were reflected in the previous quarter forecast, but that the increased demand had not materialised, and the subsequent forecast had therefore been reduced by £0.771m. Furthermore, the increased costs associated with children requiring transport to ensure social distancing had been fully funded by Covid-19 grants, which alongside slippage cause by delays to implementation of contracts for modernisation and Early Help and Prevention Services had resulted in the change in position since the previous quarter.

Further detail was provided on the Dedicated Schools Grant (DSG) budget to increase transparency on how it was being spent. The expenditure was forecast to be in line with the budget, but there were significant pressures on the high needs block due to increases in demand and complexity. This had resulted in anticipated underspends earmarked for DSG reserves not materialising and instead the extra use of DSG reserves having to take place. It was queried how the reserves would be replenished, and members were informed that further funding for the high needs block would help to correct the position, alongside a DSG management plan that had been put in place to bring expenditure back in line with funding and recover the deficit.

Members sought further detail on the replenishment of the DSG reserve to be included in the budget monitoring management plan.

Resolved – That the projected year end revenue forecast position of £0.433m favourable and the capital position of £1.89m favourable, as reported at quarter 3 of 2020/21 be noted.