Agenda item

To consider a presentation on the DSG Deficit Management Plan.

The Chair invited the Lead Member for Children, Families and Education and the Service Director –Education, to update the committee on DSG Deficit Management Plan.   

The Designated Schools Grant (DSG) is a crucial funding mechanism for schools, providing financial support for various educational needs. During the meeting, the committee focused on the DSG Deficit Management Plan, which aims to address the financial challenges faced by schools in Somerset. 

• Deficit Management Plan: The plan is being revised by external consultants to ensure a sustainable approach to managing the DSG deficit. The timeline for the revised plan is rapid, with decisions expected within the next three to four weeks. 

• Impact of Previous Actions: The original deficit management plan aimed to reduce the deficit, but it has not achieved the desired financial impact.Positive indicators and groundwork laid by the original plan will be built upon in the revised plan. 

• Participation and Quality Assurance: High participation levels in pilot work around financial pressures, particularly in Yeovil.Concerns about quality assurance in independent non-maintained special schools and EO task packages, with efforts to improve QA work included in the education restructure proposals. 

• Class Sizes and Funding: Addressing the impact of larger class sizes due to falling birth rates and tighter funding.Proposed mitigation focuses on creating small class sizes for children who need them. 

• Government and National Regulation: Discussion on the statutory override for the DSG deficit, scheduled to expire in March 2026.Addressing high needs funds not covering the costs of school placements and the need for national regulation of independent school charges. 

The Chair invited the members of the committee to ask any questions. The following points were discussed –  

• What is the timeline for the revised deficit management plan being put together by external consultants? The timeline is very rapid, with decisions being made within the next three to four weeks. The new plan will build on the existing groundwork. 

• What is the impact of the actions marked as complete in the original plan? The original plan aimed to bring down the deficit, but it has not had the desired financial impact. However, there have been positive indicators and groundwork laid for future actions. 

• What percentage of schools have been involved in the pilot work around financial insufficiency pressures in Yeovil? There was a very high level of participation, with only two schools in the wider area not contributing. 

• What is the quality assurance on independent non-maintained special schools and EO task packages, and what support is there for families? There are concerns about QA in this area, and efforts are being made to improve it. The education restructure proposals include creating capacity for QA work. 

• Will larger class sizes due to falling birth rates and tighter funding have a long-term impact on this side of things? The proposed mitigation focuses on creating small class sizes for children who need them, with a maximum of six to eight children per class. 

• What do the rates and bands on the graphs represent, and what does dysregulation mean? Rates represent the number of children per 10,000. Bands represent the severity of need based on criteria. Dysregulation refers to the inability to regulate emotions, leading to extreme behaviours. 

• Why are there still 102 places that haven't been taken in special schools? The 102 places are due to children progressing to the next stage of education, and these vacancies will be filled in September. 

• Has there been any indication from the government about extending the statutory override for the DSG deficit? The statutory override is scheduled to expire in March 2026. It is unlikely that the government will allow it to time out without action, given the potential for multiple local authorities to declare bankruptcy. 

• How is Somerset addressing the high needs funds not covering the costs of school placements, and is there a plan to regulate independent school charges nationally? Somerset is addressing this issue on the National Forum. There is a need for national regulation of independent school charges. 

• What about the consultation regarding funds for mainstream schools to align with special schools? The consultation aims to address the fundamental challenges faced by mainstream schools. 

Actions and Recommendations: 

• Revised Deficit Management Plan: Develop a revised DSG deficit management plan with the help of external consultants. 

Ensure the revised plan builds on the groundwork laid by the original plan and addresses the financial challenges effectively. 

• Impact Assessment: Assess the impact of actions marked as complete in the original plan to understand their effectiveness and use the findings to inform the development of the revised plan. 

• Pilot Work Participation: Ensure high levels of participation in pilot work around financial insufficiency pressures, particularly in areas like Yeovil. 

• Quality Assurance (QA): Improve quality assurance for independent non-maintained special schools and EO task packages. Include QA work in the education restructure proposals to create capacity for this important task. 

• Class Size Management: Address the impact of larger class sizes due to falling birth rates and tighter funding. A focus on creating small class sizes for children who need them, with a maximum of six to eight children per class. 

• Government Directive Implementation: Implement the government's directive for a register of children educated at home. 

Conduct assessments for children leaving special schools to ensure appropriate support. 

• Statutory Override: Monitor the statutory override for the DSG deficit, which is scheduled to expire in March 2026.Prepare for potential government action to address the financial challenges faced by multiple local authorities. 

• National Regulation Advocacy: Advocate for national regulation of independent school charges to address high needs funds not covering the costs of school placements. 

• Enhanced Training: Provide ongoing training for staff on financial management and quality assurance to ensure effective implementation of the DSG deficit management plan. 

• Stakeholder Involvement: Involve stakeholders, including schools and community groups, in the development and review of the DSG deficit management plan. 

• Monitoring and Evaluation: Implement a robust monitoring and evaluation framework to track the effectiveness of the revised DSG deficit management plan. 

• Feedback Mechanisms: Establish feedback mechanisms to gather input from schools, parents, and staff on the implementation and impact of the DSG deficit management plan. 

• Collaboration with National Bodies: Collaborate with national bodies and forums to address the broader financial challenges faced by schools and advocate for necessary regulatory changes.