The Forum heard from Mr Keith Hawkins of the ESFA, on the current recovery plan and the next steps to be taken. The LA had contacted the ESFA on behalf of Schools Forum, due to uncertainty that we could eradicate debt and achieve a balanced budget within the three year timescale.

Keith thanked the LA for the data he received on funding rates and the number of EHCPs in Torbay, as well as the actions taken at a local level to address these. He explained that the ESFA are conscious of the pressures on Higher Needs, and the difficulties in achieving a balanced budget.

Keith informed the Forum that current accounting guidance states that deficits can be carried forward, and that no reserves should be used to cover any deficit. He explained that a SEN review is underway, which may possibly lead to some policy changes. A consistent template for LAs to use is now being produced.

Dorothy Hadleigh, Head of SEN, told Keith that all options explored have not yet led to a formula that can cover the costs of our EHCPs. The LA would welcome examples of good practice, particularly learning from authorities that have successfully reduced their number of EHCPs, as options already looked at have not led to viable solutions that can be used in Torbay.

Members explained to Keith that they felt it unfair to judge Torbay against statistical neighbours as other authorities allocate funding in different ways, and a fair comparison cannot be made. Any money in the budget is being used for in-year pressures, and not to offset the original deficit. Keith acknowledged that the ESFA does not have funding mechanisms in place for each individual LA, but that this is something they are looking at.

The Forum shared concerns that even if the number of EHCPs is reduced, there will remain a legacy of the current EHCPs which will require funding until those children are 25, impacting on future budgets even if we managed to get to a cost neutral position for Higher Needs in schools. Members express a wish for the ESFA to work with them on the historic issues.

Keith agreed that further conversations on historic issues are needed, but reiterated the point that getting to an in-year balanced budget should be the main priority.

Officer queried whether the ESFA would expect the LA to put in a request for disapplication. Keith explained that it up to each authority to do so if they wish, but ministers are now less inclined to approve this. A Full SEN spending review is underway, including a review of the National Funding Formula, but has been delayed by the COVID pandemic. The ESFA is welcoming suggestions from Forums to inform this review.

Keith was pleased to see the commitment of the Forum in tackling the issues raised, and thought that the actions taken by Forum and the Higher Needs Recovery Group are working well, and that EHCPs should continue to be the main focus. He agreed to meet with the Forum again once the SEN review has been published later this summer. 

Members thanked Keith for his time, and were pleased to see that he recognised their commitment on the issues raised.

Action – Forum to invite Keith to re-attend once SEN review has been published.