Louise Jenkins (Lead Accountancy Manager) presented the Quarter 2 Budget Monitoring Report for Children’s Services to the Panel and highlighted the following key points:

a)    The report set out the financial position for Quarter 2, including growth allocations received at the beginning of the year and savings proposals within Children’s Services. There was a significant budget movement in the quarter of £3.3 million and explained that the report detailed the reasons behind this variation.

b)    The service continued to face significant financial pressures due to rising costs associated with independent specialist and residential placements. Those challenges were compounded by limited placement availability both regionally and nationally, alongside increased demand for services within the city. Strategic workstreams had been initiated to mitigate those pressures, including:

              i.        The Family Homes Programme;

             ii.        Enhanced fostering and recruitment campaigns;

            iii.        Strengthened collaboration through the Reconnect Partnership;

c)    There were also staffing challenges in securing permanent appointments, resulting in the use of agency and interim staff to maintain service continuity. A service redesign was underway to align with the expectations of the Family First Partnership;

In response to questions raised it was reported that:

d)    The costs of some residential placements reflected accommodation, staffing ratios (which could be as high as three or four staff per child for complex needs), and additional therapeutic interventions or activities. It was noted that some children did not require residential care but were placed there due to shortages in fostering placements. The costs of placements were significant and driven by market conditions where demand outstripped supply;

e)    The government was considering mechanisms to address profiteering, as highlighted in Josh MacAlister’s independent review of children’s social care. While cost capping was not proposed, discussions with providers were ongoing to find a more equitable approach;

f)     Fostering recruitment remained critical to reducing reliance on residential placements;

g)    Fostering information would be sent out to all households in the city within Council Tax mailings and this had been done previously and would be considered again;

h)    The £12.603 million figure in the report represented net growth in the children’s budget for the year (after accounting for £17.5 million growth and £4.9 million savings). The projected overspend at the end of the year was £3.731 million. It was noted that forecasting remained challenging due to the demand-led nature of the service, but improvements had been made in recent years;

i)     The statutory overrides for the Dedicated Schools Grant (DSG) had been extended for two years and further detail was expected in the forthcoming SEND White Paper;

j)     Joint funding arrangements for an unregistered placement costs were shared 50:50 with Health partners.

Actions:

1. Officers to ensure fostering information is included in Council Tax mailings;

2. Officers to arrange DSG training for committee members.

Recommendations:

The Panel agreed to:

1. Note the Quarter 2 Budget Monitoring Report for Children’s Services;

2. Write to government regarding concerns over placement costs and market conditions;

3. The Committee supported continued efforts to promote fostering recruitment and endorsed the inclusion of fostering information in Council Tax communications.