Decision Maker: Corporate Director of Children and Young People's Services
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
Approval for a disapplication request to be
made to the Secretary of State for Education to transfer 1% of the
Dedicated Schools Grant (DSG) funding from the Schools Block to
High Needs Block in 2019/20.
PLEASE NOTE This decision was originally
published on or near the date of the decision and so call in no
longer applies. It has been re-published as part of the change in
committee management system that we use.
Although the Schools Block is ring-fenced in 2019-20, it is possible to transfer up to 0.5% of Schools Block funding out with the agreement of the Schools Forum. Transfers of more than 0.5% of the Schools Block require the local authority to make a Disapplication Request to the Secretary of State. Equally, where the Schools Forum has turned down a proposal from the authority to move funding out of the Schools Block, but the authority wishes to proceed with the transfer, a disapplication request can be used. Disapplication requests need to be submitted by 30 November 2018.
In 2018-19, following consultation with schools and subsequent approval by Schools Forum, 0.5% of Schools Block funding was transferred to the High Needs Block. The increasing pressures for High Needs services and support has resulted in a projected £5.7m overspend in 2018/19; this is offset, in part, by the transfer from the Schools Budget. This leaves a £4.1m projected deficit at the end of 2018-19. Given the increasing financial pressure resulting from the 2018/19 overspend and an expected continuation of the rise in demand for funded Education, Health and Care Plans, the local authority, again, needs to transfer funding in 2019-20.
A funding consultation was undertaken with schools in October 2018 and their views were requested on a 0.5% and a 1% transfer of funding from the Schools Block to the High Needs budget. The majority of the schools responding to the consultation indicated support for a 0.5% transfer of funding. The North Yorkshire Schools Forum considered the results of the consultation at its meeting on 19 November 2018. Whilst recognising the financial pressures on the High Needs budget, the Schools Forum did not support the submission of a disapplication request to the Secretary of State for a 1% transfer of funding from the Schools Block to the High Needs budget. They did, however, support a 0.5% transfer in the event of the LA submitting a disapplication request for a 1% transfer and that request being refused by the Secretary of State.
Whilst the Local Authority recognises the views expressed by schools and the Schools Forum, the Local Authority has a corporate duty to address the forecast budget overspend of £5.7m on the High Needs budget. it is felt that there is no alternative but to submit a disapplication request to the Secretary of State to transfer 1% of funding from the Schools Block to the High Needs Block. An agreement of the 1% funding transfer will enable both the transformation of High Needs provision and services as identified in the new Strategic Plan and the associated re-shaping of the High Needs budget.
Publication date: 30/04/2021
Date of decision: 30/11/2018