Agenda item

Purpose

To inform the Cabinet Member of the projected revenue expenditure within the portfolio cash limit and the Capital Programme for the financial year 2022/23. This report sets out the budget position and contributing factors to the projected spend within the portfolio as at the end of June 2022.

RECOMMENDED that:

1)    The Cabinet Member notes the Children, Families and Education Portfolio forecast revenue and capital budget positions, as at the end of June 2022, together with the variance and pressure explanations.

2)    In consultation with the Cabinet Member, Directors develop a savings plan which will eliminate the overspend currently being forecast, progress against which is monitored by the Cabinet Member and the Director of Finance on a regular basis. 

Angela Mann, Finance Manager, introduced the report which covers the rest of the budget.  She informed members that overall, there is a budget pressure of £1.9m, just over £1m of which relates to covid costs. The remainder includes pressures relating to school transport, family safeguarding, placements for looked after children and indigenous care leavers.  There is also pressure due to cost of living and energy cost increases and staffing pressures in homes and in the fostering service.

The Finance Manager explained that these are offset by underspends elsewhere including in the budget for under 18s asylum seeking children, asylum seeking care leavers and she noted that some high-cost placements are forecast to reduce.  In terms of the capital projections, the Finance Manager stated that these are detailed the report and that on budget.

The Cabinet Member commented that the costs associated with covid seem to be segueing into increases to the cost of living and it is no surprise that they translate into pressures on children, families and education.  There had been good progress on home to school transport, but increased costs and demand have had an impact and thinking needs to be done around this national issue. We had been seeing positive impact of using the family safeguarding model and it is very difficult to tease out what would have happened current pressures had not arisen.  We are not complacent about the overspends and are constantly thinking creatively around how to manage them. The capital projections provide a good news story in some ways, but it has been a result of sort of descoping some projects to managing within the budget.  It is therefore worth noting that some things which would have been beneficial will not happen as the money does not have the same value it had before. 

In response to members questions about home to school transport, Mike Stoneman, Deputy Director of Children's Services and Education, explained that:

·       The main reasons for the increased costs are due to increased demand and increased fuel costs. 

·       There are strict criteria for claiming home to school transport and these children and young people have complex SEND and meet those criteria.

·       There is a discretionary element to it and so transport will be provided where possible, eg. if there is space on route then it will be offered at a charge.

·       In a very small number of cases, there it is not possible to offer a child a school place within three miles for a secondary school or two miles for a primary school, those costs will be covered.

·       In terms of mitigating the increased costs, the service is looking at making routes more efficient, trying to broaden the market and also having a review to see can we do things differently such as using our own transport and relook at independent travel training word where appropriate.

·       Despite this it is unlikely that the overspend will come down significantly in the short term, but the service is doing everything it can to try and bring that cost down.

In relation to questions about high-cost placements, Sarah Daly, Director of Children's Services informed members that:

·       There is a national crisis around the lack of appropriate placements settings and the national care review will follow up proposals made by Josh McAllister's report.

·       Two years ago, a high-cost placement was one that cost £7,000 a week, now some authorities are paying £30,000-£60,000 per week to support children with significantly complex needs.

·       In the past week there have been 34 children waiting for one bed in secure accommodation.

·       These are children with exceptional needs who need bespoke packages with three carers to one child and specific wrap around care.

·       Portsmouth is working with several other local authorities in the southeast on a proposal to work with a provider to provide wrapping care and a specific focus on young adolescents.

·       This responds to concerns around exploitation, criminality, or criminal behaviour and how it might be possible to them keep them close to home and wrap around that trauma informed approach.

Councillor Terry Norton offered his support as Deputy Police and Crime Commissioner including lobbying.

In response to questions on care leavers seeking asylum, the Director of Children's Services explained that:

·       The duty of care was extended from up age 21 to up to 25.

·       Many of these care experienced young people have suffered significant trauma.

·       Portsmouth has a larger number of children and young people who are awaiting asylum outcomes than many other authorities because of larger numbers coming through the port.

·       Those children do not have any access to public funds until they get their outcome decision from the Home Office and there are significant delays.

·       These delays have a significant financial impact on the local authority and also in terms of the emotional wellbeing of those young people.

·       This can lead to a vicious circle as without a sense of stability anxiety levels are high, which in turn leads to increased costs because of placement needs.

·       Portsmouth is working across the DCS group to lobby the Home Office about speeding up some of these decisions.

Following questions on where savings might need to be made, the Director of Children's Services commented that this is under constant review.  The impact of covid continues to be felt in children's services and education and is already being affected further by the cost of living and increasing numbers of looked after children in recent months.  The city has pockets of significant deprivation and inequality and there are concerns about capacity to services knowing the pressures already within our system.  Children's services is reviewing everything it does, is working with other authorities and looking at what could be streamlined or delivered differently.

The Cabinet Member thanked members for the questions which provided an opportunity both to be challenged and explain the challenges being faced day in day out.  She added that the department was scrutinising every penny without ever putting children in unnecessary risky situations.

DECISIONS:

1)    Noted the Children, Families and Education Portfolio forecast revenue and capital budget positions, as at the end of June 2022, together with the variance and pressure explanations.

2)    In consultation with the Cabinet Member, Directors develop a savings plan which will eliminate the overspend currently being forecast, progress against which is monitored by the Cabinet Member and the Director of Finance on a regular basis.