Schools Forum

Agenda Item 2

Notes of the Schools Forum meeting 3 October 2018

Attendees

Members Observers (representation)/Others Secondary headteachers: Observers: Matthew Gardner Julie Walker – SEN.SE Ian Rowswell – SSE Primary headteachers & Lucinda Searle – SAPHTO Governors: Rob Benzie - SASH Sue Brewer – vice chair Louise Southgate – NASUWT Morwenna Dunstan Rachel Murtagh – NEU Chris Axten-Higgs Robin Head – NEU Richard Culham Natalie Paull - Diocese Claire Nurse Officers: Special School headteachers & Julian Wooster Governors: Frances Nicholson – Cabinet member Mark Ruffett Annette Perrington Lizzie Watkin PRUs: Dave Farrow Jo Simons Alison Jeffery

Academies: Ken Rushton Peter Elliott - chair Sue Ford (notes) Helen Rogerson Alison Crudgington Amanda Eastwood Barbara O’Keefe

Special Academies:

Non-school members: Louise Rowley Rachel Parish Helen Hazell Mark Keating

17 voting members in attendance.

1. Apologies from members and observers

➢ Members: Marcus Capel, Richard Berry & Sarah Smillie (new primary representative).

➢ Observers/officers: Rachel Parker (NASUWT), Marion Gatrell (VOICE), Phil Burner (SAPHTO), Faye Purbrick (Cabinet member for Education and Council Transformation) and Charlotte Wilson.

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The Chair welcomed the following new members/attendees: Morwenna Dunstan, Headteacher at St Mary’s Primary, Bridgwater and Richard Culham, Headteacher at Birchfiled Primary, both representing maintained Primary Schools. Mark Keating, Elected Member Alison Jeffrey, Early Years & Primary Advisor Lizzie Watkin, Strategic Finance Manager – Adults, Health and Children’s Lucinda Searle, representing SAPHTO Natalie Paull, representing the CofE Diocese

Chris Blazey, headteacher at St Dubricius First School, Porlock, is standing down as a maintained primary representative due to school commitments. This meeting would have been Charlotte Wilson’s final Schools Forum; however, she is unable to attend and has sent her apologies accordingly.

2. Somerset County Council’s (SCC) Financial Position

An additional (morning) session was held prior to the afternoon business meeting to provide members with an update on SCC’s financial position, including the following: • Update on Children’s Services and Peopletoo • Proposals affecting Children’s Services and the Dedicated Schools Grant (DSG) • Impact on DSG if the proposals are implemented

On 12 September 2018, the Cabinet was asked to consider a number of proposals put forward as part of the Authority’s Financial Imperative savings to address the financial challenges. If agreed and implemented, these proposals will address the majority, but not all, of this financial year’s pressures and lay the foundations for longer-term financial sustainability for the Authority.

Details of the Financial Imperative proposals relating to the DSG were circulated to members and are summarised below: A. Contribution to residential placements for children looked after. B. Contribution to staffing capacity to implement the transfer of high needs funding to Education Health Care Plans (EHCPs). C. Contribution to occupational therapy seating assessments for pupils at mainstream schools. A decision was taken at the 11 July Forum meeting to fund this from the High Needs Block. D. Savings from charges to strategic planning for education; this relates to the 2019/20 FY. E. Funding for an ‘invest to save’ project to reduce the expenditure for high needs independent placements. A decision was taken at the 11 July Forum meeting for one off funding from the DSG reserve. A further decision is required for continued support in 2019/20 FY. F. Funding for Democratic Services to support the Admissions and School Transport appeals 2019/20 FY.

As the proposals impact on the Dedicated Schools Grant, final decisions will be deferred to allow members to consult with school colleagues and obtain feedback. An

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extraordinary Schools Forum meeting has been arranged on 7 November at which members will be asked to feedback on the proposals.

3. Notes of the last meeting – 11 July 2018

3.1 Accuracy: Item 9: High Needs Sub Group. The figure quoted on page 11 in respect of the proposal to use DSG reserves to fund 2 officer posts for 14 months should be £117,100 and not £107,100 as originally quoted. The notes have been updated accordingly.

3.2 Matters arising: Item 8 Technical Working Group Update - proposal to use funds to support schools in financial difficulty due to severance payments following a OFSTED judgement – eligibility criteria to be reviewed (included in Agenda Item 6)

Item 9 High Needs sub group - request for funds to undertake occupational therapy seating assessments prior to starting school – evidence required on whether children are SEN support / High Needs or not. The Forum was informed that a total of 334 assessments are needed and 184 of these relate to children with Education Health Care Plans.

Item 9 High Needs sub group – Terms of reference were requested by the Forum relating to the funds to support 2 officer posts for 14 months, until end August 2019. The LA indicated that a project plan would probably be more useful, and this was agreed by Forum members. Details are provided in Agenda Item 5, Appendix 2)

4. Reports and Updates

4.1 Director of Children’s Services (DCS) Julian Wooster gave a presentation which provided an update on national and local education issues and the following points were noted: National • The DfE is planning to launch a consultation on Home to School Transport. Current arrangements are based on the 1940 Education Act, but no legislative changes are planned. However, the DfE has been asked to re-write some of the elements. • Ofsted is focussing significantly on LAs and schools where vulnerable children are not in the school system. The DCS is being asked about issues raised. Local • The planned capital investment programme on schools is at risk as the LA cannot afford the revenue cost of borrowing. The LA is considering delaying some schemes with a view to pursuing alternative sources of funding as opposed to borrowing. Concern has been raised that the process is too slow to meet need and expansion. However, the LA does have a statutory duty to ensure sufficiency of places. • Services are moving to a statutory minimum to address the LA’s financial challenges and this is not confined to Children’s Services. • KS2 and 4 outcomes are not keeping pace with national results and Ofsted will challenge this.

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4.2 Head of Support Services for Education (SSE) Ian Rowswell gave an update on SSE and the following points were noted: • SSE is exploring the use of Dillington House as the venue for SCITT courses from next academic year. SSE’s training partner, Worcester University has visited and is supportive of the move. Courses are currently held at Taunton Academy. • The Autism and Communication services are looking to secure a contract with the Autism Education Trust to provide Autism training in schools. More information can be obtained from Angela Williams, Team Leader, Autism and Communication Service.

5. Early Years sub group

Dave Farrow provided feedback from the Early Years (EY) sub group meeting on 13 September 2018.This included information on important updates for members that have early years provisions, and a decision for members to take on the reductions in English as an Additional Language translations and interpretations services for early years providers.

The Forum was recommended to note: • The current position on moving to monthly payments for Early Years Entitlements • The new Provider Agreement 2018 has been published • Training subsidy to SCIL following the Cabinet decision on 12 September 2018.

The Forum was also asked to approve: • £5,833 from 2018-19 EY central reserve to be used for EAL interpretation and translation work • Consult with providers on changing the Early Years Single Funding Formula (EYSFF) for the deprivation factor from using an Experian index (Mosaic) to the income deprivation affecting children index (IDACI).

The following points were noted: • DfE statutory guidance has been updated to include a requirement for LAs to pay all EY providers the full amount owed to them monthly unless they have good reason not to do so. The entitlements team currently pay a proportion of funding to providers in advance based on forecast hours with an end of term adjustment based on actual take-up of hours. The EY team has reviewed the possibility of moving to monthly payments and has determined that this is not currently viable without incurring additional resources but will continue to monitor the process. • The proposal to utilise £5,833 from 2018-19 EY central reserve for EAL interpretation and translation work was detailed in section 2 of the paper. The planned savings from interpreting and translation will not be realised due to high use of the service and EY settings being unable to pay due to financial constraints. More work will be carried out to achieve a better service within budget. • Section 3 provided details of the proposal to change the methodology for the deprivation supplement within the Early Years Single Funding Formula. A number of models are being considered and these will go to consultation this term, with changes being effective from April 2019.

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Summary/outcome: The Forum approved: • £5,833 from 2018-19 EY central reserve to be used for EAL interpretation and translation work Yes 16 No 0 Abstentions 0

• Consult with providers on changing the Early Years Single Funding Formula (EYSFF) for the deprivation factor from using an Experian index (Mosaic) to the income deprivation affecting children index (IDACI).

Yes 16 No 0 Abstentions 0

The Forum also noted: • The current position on moving to monthly payments for Early Years Entitlements • The new Provider Agreement 2018 has been published • Training subsidy to SCIL following the cabinet decision on 12 September 2018.

6. High Needs sub group

Annette Perrington provided an update on the arrangements for children and young people with Special Educational Needs. It included: • The latest updated outturn position to the Forum following month 5 financial report • The 6 proposed activities under the Council’s financial imperative and seeks Forums views on all proposals and requires decisions on 2 of the 6 proposals • A draft Dedicated Schools Grant (DSG) deficit action plan (appendix 1 refers). • Summarized feedback from the High Needs Block (HNB) task & finish group.

The Forum was asked to: • Note the outturn position forecast from the month 5 financial report • Consider feedback from the DSG HNB task and finish group and comment on the proposed activities for the High Needs deficit action plan • Give a view on the 6 financial imperative proposals, and decide on 2 of the proposals which require Forum to make the decision. As discussed at the morning session, all decisions will be taken at the extraordinary Forum meeting on 7 November 2018.

The following points were noted: • When the revised funding bands were implemented in Somerset’s special schools, 7 of the 8 special schools experienced a loss in funding. However, under the previous system, there were more bands and the tariffs were much higher when compared to neighbouring local authorities. The re-alignment of the bands has produced a funding system which is more in line with the national picture. The revised bandings have also been rolled out to mainstream schools; this is to direct funding where it is most needed. There has been no net reduction to the budget; the banding system was revised to redistribute funds where needed.

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• The NEU representative raised concern over the PRU review, reporting no consultation and some staff have lost their jobs as a result of the funding changes. • The number of permanent exclusions has continued to rise, including the primary sector. It would be appropriate to look at behaviour support and alternative methods. • The impact of the financial imperative proposals on the DSG for 2018/19, based on current placement numbers is £1,043,900. This is over and above the 0.5% transfer from the schools block to the high needs block. • Some schools have not received their annual notification of funding in respect of Learning Support and Educational Psychology. • The LA can only use capital receipts for revenue spend if the project is ‘transformational’. If the LA submits a bid for Central Government funding, it must demonstrate a need to the DfE in order to secure capital investment. • Parents are sometimes represented by barristers at SEN tribunals. It was suggested that the LA might wish to consider investing in a barrister to save money. This was rejected by the LA as it could be regarded as intimidating for the parent if he/she has not employed a barrister. It is important that the LA adheres to casework law and its staff has the relevant expertise/knowledge. Tribunals must be determined on an individual basis; however, there must be an appropriate offer of provision otherwise the case will be lost. • The LA needs to be more consistent and transparent in its decision making and have the correct local special educational provision. Parents need to have confidence in Somerset schools, both mainstream and special. • The LA is already seeing positive results in terms of cost avoidance following the appointments to the SEND Commissioning Contract Officer and Contract Manager posts (as approved by Forum at the 11 July meeting). • Forecasting the budget outturn is unpredictable during the Summer until the Autumn term transfers and placements are secured and established.

Summary/outcome: • The Forum noted the outturn position forecast from the month 5 financial report. • Views on the 6 financial imperative proposals, along with decisions on 2 of the proposals will be taken at the extraordinary Forum meeting on 7 November 2018. • The Forum requested that the High Needs sub group consider progress of the SEND commissioning for Independent Non-Maintained placements and be included as an appendix to the HN report at every Schools Forum meeting. • The LA will engage with Union representatives regarding the PRU review,

7. Technical Working Group

Ken Rushton provided feedback from the Technical Working Group (TWG) meeting held on 24 September 2018. It included discussions on the following: • The Council’s financial imperative proposals • Consultation with Somerset schools and academies on funding changes for 2019/20 (Appendix A refers)

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• Use of Dedicated Schools Grant (DSG) Central Schools Services Budget reserves to support schools with exceptional costs • Proposed changes in the protocol for schools with surplus revenue balances converting as sponsored academies.

The Forum was asked to: • Decide on the proposal to use DSG Central Schools Services Budget reserves to reimburse schools and academies who’ve incurred exceptional costs related to staff settlements to secure a change in leadership. • Give a view on o the retention of a proportion of a school’s revenue surplus balance upon converting as a sponsored academy. The Cabinet Lead for Education to decide on final arrangements. o The Schools’ consultation document for changes in 2019/20

The Forum was also asked to note the discussions held on the financial imperative proposals.

Although the Dedicated Schools Grant has an overall deficit, the Central Services School Block within the grant has an underspend.

Paragraph 1.10 of the paper provided details of the Teachers Pay Grant, as announced by the DfE. This will be available from September 2018 to fund the costs in excess of the previous 1% pay cap, and will be allocated on a per pupil basis with different values by phase and a minimum amount for small schools.

Section 2 of the paper summarised the draft consultation on proposed local changes to the revenue funding formula for 2019/20 and full details were provided in Appendix A. It included the following items: 1. Formula Funding, Element 1; exceptional circumstances – updated to include a change to Private Finance Initiative (PFI) charges. This change only affects two mainstream schools; Chilton Trinity and Robert Blake secondaries. If approved, the amendment would make a difference to Chilton Trinity in 2019/20 whereas it would probably be several years before it has a bearing on Robert Blake. 2. Transfer of up to 0.5% from the Schools Block to the High Needs Block. This proposal was submitted for 2018/19 and 75% of schools supported the request although the full 0.5% was not actually transferred. 3. De-delegation (Maintained Primary and Secondary schools only) 4. Education Functions for a Maintained School – updated to include funds retained for school redundancies. This proposal is in response to the cessation of the Education Support Grant in 2017 for general duties. Currently, academies would meet the cost of school redundancies whereas the LA pays for maintained schools. If approved, the proposal would redress the balance.

The consultation will be published before half term and members were asked to submit any suggested changes/comments to the CYP Finance or Somerset Schools Forum email in box.

A proposal for the use of DSG reserves to support schools in financial difficulty was detailed in section 3 of the paper. This relates to:

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1. Maintained schools with deficits which have been incurred due to exceptional costs relating to unforeseen circumstances. 2. Some schools on the sponsored academy route with projected deficits at the point of conversion. Sponsored academies open as new schools (new DfE number) and the predecessor school closes; the liabilities are retained by the authority and not paid from the DSG.

The paper included the proposed criteria for each circumstance to determine eligibility. If the school has a good judgement, then it would not qualify. One of the criterion for a maintained school could be regarded as an exceptional circumstance under Element 1 of the National Funding Formula if the unforeseen cost exceeds 1% of the school’s delegated budget and is the sole reason for the deficit. It would also be appropriate to check the Schools Finance Regulations to ascertain if this scenario falls under the remit of Education Functions for a maintained school, specifically HR.

Section 4 of the paper summarised the proposed changes in the protocol for schools converting as sponsored academies with surplus revenue balances. Currently Somerset schools receive 100% of their surplus revenue balance upon conversion. However, for schools with deficit balances the liability remains with the local authority as they effectively close and open as a new school. The Forum was informed that a number of schools due to convert as sponsored academies are expected to have deficits. In order to help meet the cost of this, there is the option to retain some of the balances for those schools with a revenue surplus.

If approved, the amount retained must be judicious to prevent converting schools from spending unnecessarily and going into deficit. The LA could remove delegation to prevent a school from doing this, but this would require investment in additional resources, to oversee the responsibilities and decisions required by the authority where removal of delegation has taken place and is not an affordable option given the authority’s finances.

Summary/outcome: The Forum did not support the proposal to use DSG Central Schools Services Budget reserves to reimburse schools and academies who’ve incurred exceptional costs related to staff settlements to secure a change in leadership.

It was agreed that the cost should be met from the Education Function for Maintained Schools, subject to the schools’ consultation.

The Forum supported the following: • the retention of a proportion of a school’s revenue surplus balance upon converting as a sponsored academy • The Schools’ consultation document for changes in 2019/20.

8. Schools Budget 2018/19

Ken Rushton provided the Forum with an update on the Schools Budget for 2018/19 financial year as at the end of August 2018. The report does not include the financial imperative proposals relating to the Dedicated Schools Grant (DSG).

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The current forecast outturn position for the DSG (excluding delegated schools budgets) is a £0.071m overspend. The cumulative deficit brought forward is £3.967m and therefore the combined projected outturn is a deficit of £4.038m.

The paper summarised the main changes to each of the funding blocks and the following points were noted:

High Needs Block • The opening deficit balance of (5.620m) has accumulated over several years. • The recorded in-year £0.668m surplus is due to the £2.404m transfer from the Schools block and the Central Schools Services block to the High Needs block. Otherwise, the in-year situation would be an £1.736m overspend.

Schools (de-delegated services) • This budget is currently £0.172m overspent but the values for 2019/20 will be adjusted accordingly to recover the overspend.

Central Schools Services Block (CSSB) - excluding de-delegated • Paragraph 2.3 of the paper summarised previous Forum approvals to drawn down monies from the CSSB to support additional costs in 2018/19. This includes £71,000 for increased costs to Schools Admissions due to a change in legislation in respect of academies, VA and VC schools and the associated charges.

Early Years Block • Allocations in respect of funded provision were originally based on estimated take up of hours. The DfE has now carried a retrospective adjustment based on actual take up; as this is lower than the estimate, a £234k overpayment has been deducted from the DSG paid in 2018/19. • There is currently a surplus of £746k. As this is a one off saving, it is not feasible to increase the hourly rate within the Early Years Single Funding Formula as this would require an ongoing annual commitment. The funds could be used as an investment for a short term training programme. Options will be discussed by the Early Years sub Group and proposals submitted to the Forum meeting on 27 November.

Summary/outcome: The Forum noted the current forecast outturn position for the Dedicated Schools Grant (excluding delegated schools budgets).

9. Any Other Business

9.1 Review of Provision – and Crewkerne Area

Note: Matthew Gardner, head teacher at declared an interest in this item.

Dave Farrow presented a paper which set out a proposal to review school provision across the Ilminster and Crewkerne area. Its purpose is to establish whether a two tier model that is financially sustainable can be delivered, to replace the current three tier system.

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The Forum was asked to agree to the use of £71,500 from DSG CSSB reserves, to fund the cost of the review, as the outcome could result in savings to the overall Schools Budget and ensure that the schools in the area are able to continue to deliver good quality education.

The paper provided background details of the existing three tier system and the circumstances that have led to the recommendation for a review. The view of Local Authority Officers that the current system is not sustainable, and a 2 tier system should be considered utilising the existing estate of schools where possible, recognising the national presumption against the closure of small rural schools. It should be noted that the surrounding areas both within Somerset and across the border in Dorset are all two tier.

The following points were noted: • In previous similar situations, schools have declined a review, leading to budget/deficit issues, resulting in poor OFSTED judgements. • As the LA does not have the capacity in house to do this piece of work it is proposed that Futures for Somerset is commissioned to carry out the review. Futures would look at the school structure, buildings, accommodation and constraints. It would also provide an independent perspective. • The LA has already undertaken negotiations with Futures to reduce cost, but time is at a premium for further discussion or seeking alternative quotes. • The proposal provides an opportunity to make savings rather than have changes forced upon the LA at extra cost. • Phase 1 of the review would involve all schools within the Ilminster and Crewkerne area. Phase 2 would be the implementation. • One academy and some church schools will be affected by the review. • A lot of discussion with the Regional Schools Commissioner has taken place and the proposal is supported; however, the Commissioner has no decision-making powers. • The LA has been discussing with the schools concerned a structural review, over several years but it hasn’t led to any school changes which impact on the future viability. • There is a real risk to pupils in terms of standards. • Discussions have taken place with the schools’ Chairs of Governors and head teachers to raise awareness. There needs to be some movement forward for the community, staff and pupils. • Middle schools in the area are losing pupils to secondary schools. Furthermore, the 6th Form at Wadham Upper school is likely to discontinue as the majority of its catchment pupils choose alternative local provision.

Summary/outcome: Forum agreed to the proposal to provide funding of £71,500 from DSG reserves to enable a review of provision in the Ilminster and Crewkerne area to be commissioned.

Yes 15 No 0 Abstentions 1

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9.2 Somerset Education Partnership Board

The Somerset Education Partnership Board (SEPB) has evolved from the Somerset Compact with Schools, set up in 2011 as a collaborative partnership between schools and the LA.

It was proposed that there should be a review of the terms of reference to clarify its purpose and the role in the development of education in Somerset. The next SEPB meeting is scheduled for 11 October 2018 and a review of the terms and conditions will be included in the agenda. Details will be reported back to Forum.

9.3 Funding for Raising Achievement Plans (RAP) and Team Around the School A request was made regarding the continuation of available funding for RAPs and Team Around the School.

It was confirmed that there are no planned changes for Team Around the School (TAS) work. This was LA funded but without an approved budget; therefore, a decision was taken over the Summer to resource TAS by using some of the funds set aside for Raising Achievement via historical commitment funding. The remaining funds to be discussed with the phase organisations.

Action: this item is to be discussed at the next SEPB meeting on 11 October and the outcome reported back to Forum.

10. Future Meetings

2018/19 meeting dates All meetings are to start at 1.30pm unless otherwise stated, booked at Victoria Park Community Centre, Bridgwater unless otherwise stated:

Wednesday 7 November 2018 – extraordinary meeting at Bridgwater College Academy – Polden Campus 5pm to 6.30pm Tuesday 27 November 2018 – note change from 5 December 2018 Wednesday 16 January 2019 – note change from 22 January 2019 Wednesday 6 March 2019 Wednesday 22 May 2019 Wednesday 10 July 2019

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