Agenda item

Report ECHS19033

The Sub-Committee considered a report providing the budget monitoring position for 2018/19 based on activity levels up to the end of December 2018.

The Sub-Committee noted that issues remained around the High Needs element of the Dedicated Schools Grant (DSG).  Nevertheless, a £281k underspend would be added to the £1.180k carried forward from 2017/18 giving an estimated DSG balance of £1,295k at the end of the financial year.  This figure included the additional £788k High Needs funding for 2018/19 that the Government announced in December 2018.  In response to a question, the Head of Education and Children’s Social Care Finance confirmed that in light of the increasing pressures on the High Needs Block it would be prudent to retain the surplus around this level.  The final 2018/19 outturn would need to be evaluated before any decisions could be taken.

In relation to Adult Education; in response to a question the Head of Education and Children’s Social Care Finance explained that the £128k overspend was a result of, amongst other things, possibly overestimating the fees that would be generated in 2018/19.  The Director of Education explained that there had been a focus on supporting corporate priorities and the courses that were required to do this were the less lucrative courses to run.  There had also been an element of overspend around staffing and this would be resolved going forward.  The current projections for 2019/20 were that the service would be cost neutral as growth had been included in the budget.  The Sub-Committee also noted that some of the overspend had been the result of action that had been taken in response to recommendations from Ofsted.

Members noted that the Children’s Social Care Division was currently overspending by £3,051k (net of management action of £800k).  The overspend before management action stood at £4,250k.  Placements for children continued to be a pressure.  Members were reminded that the number of placements was volatile and had further increased above budgeted levels, particularly in residential homes, independent fostering arrangements and special guardianship arrangements.  This was in part due to the increase in the number of children reaching the threshold for secure placements and no secure placements being available.  There had also been a significant increase in the cost of outreach services connected to the placements.  Officers were being proactive in addressing this issue.  In addition to the £800k already received from Bromley Clinical Commissioning Group (CCG) an additional contribution of £900k had been secured following positive discussions.  The Local Authority had been able to put a strong case to the CCG with good evidence and the additional funding would go towards addressing the increasing pressures.  Members noted that in particular Fostering, Adoption and Resources was a needs-led service and as a result figures were volatile.  The Head of Education and Children’s Social Care Finance confirmed that growth had been assumed for 2019/20 in addition to the £900k received from the CCG.  The Service continued to identify ways in which further pressures could be mitigated.

A Member noted that Bromley was still below statistical and national neighbours in relation to the number of children in care and queried the explanation that had been given to Ofsted.  The Director of Children’s Social Care explained that Ofsted had challenged the low numbers of children taken into care in Bromley.  In order to identify an answer it was necessary to go back to 2016 when there was clear evidence that children were not being safeguarded.  Since that time the Local Authority had continued to see an appropriate increase in the number of Children Looked After.  However, the Director was confident that the right children were now being cared for and the Courts were validating the decisions being taken by the Local Authority.  Ofsted accepted that Bromley was moving from a low trajectory but had seen an appropriate increase.

In response to a question, the Director of Children’s Social Care explained that the West London Alliance was a result of a number of Boroughs coming together as a hub.  Together the Boroughs were in a stronger position to negotiate.  The Alliance also reviewed the quality of placement as well as providing a central hub for reviewing placements.  Colleagues in Commissioning were reviewing the options and it was possible that Bromley may choose to join or not to pursue this route however it was important that all options were being considered.  The Sub-Committee noted that there were national challenges around secure residential placements.  The Director of Children’s Social Care confirmed that one of the new units that was proposed would be located in Medway whilst the location for the unit in the North was not known.  Members noted that it was likely to be a couple of years before the units were fully functional.  In response to a question concerning whether there would be any value in considering working with LB Bexley to develop a joint business case for a secure unit; the Director of Children’s Social Care reported that there were challenges around responsibility for the number of children that would be placed and the range of safeguarding issues that this would bring.  The main cost to the Local Authority came from cost of the level of supervision that could be required to safeguard the young people, which was 2:1 or in some more complex cases 3:1.  Once a young person was in a secure placement the Local Authority would ensure that therapy and education was put in place within the placement.  The Director of Children’s Social Care also reminded the Sub-Committee that a case was published by the court which supported Bromley in its efforts to find a secure bed for young person who was deemed “too risky” for secure accommodation due to the mix of young people already within the placement.

In response to a question concerning whether any further management action would be taken, the Head of Education and Children’s Social Care Finance confirmed that in 2018/19 specific management action projects had been put in place.  As a result of this some savings had been identified and delivered and some had not.  The Director of Children’s Social Care reported that one specific project that had delivered savings involved identifying up to 4 in-house foster carers being trained as step down specialist foster carers for more complex young people leaving secure accommodation.  There had already been one successful matching which, more importantly, delivered a benefit to the young person whilst releasing a saving of £250k for the Local Authority.  If a further 3 successful cases could be delivered a significant pressure on the Local Authority’s budget could be mitigated.

In relation to the recruitment of in-house foster carers, the Team was working hard to be creative about attracting foster carers to Bromley.  There were currently 29 prospective foster carers in the pipeline.

Members thanked and congratulated the Head of Education and Children’s Social Care Finance, the Director of Children’s Social Care, and the Children’s Social Care Division on the successful delivery of innovative savings and securing additional funding from the CCG.

The Sub-Committee noted that a further risk area for placements was the Unaccompanied Asylum Seeker Children cohort.  Bromley were experiencing higher levels of children coming into the Borough.  Whilst there was grant available, it did not cover the costs of the children being looked after.  Due to the cultural match and complexity of the young people a number were in independent fostering agency placements which were more expensive.  The Department was in the process of setting up specialist fostering services to support the young people and provide more in-house carers for emergencies.  This would reduce costs but ensure that young people received wrap around services from the Council.  Although the Council was given a grant (£91 per day for a 16+, £114 per day for an U16) this did not cover the costs of the placement and on costs.

Members noted that 51 Unaccompanied Minors had now been placed in Bromley.  Bromley had now withdrawn from the London rota although it was inevitable that in the future quotas would be increased and Bromley would be placed back on the rota.  Directors of Children’s Social Care across London were currently in negotiation with the Government around the funding issue.  Members again noted that the first 25 children were not funded with funding for the remaining children not coving the costs, and on costs of providing care.

In response to a question concerning levels of demand for support from the Virtual School by adopters who under the new Social Work Act could request support from the Virtual School.  The Director of Children’s Social Care confirmed that this was being closely monitored.  Detailed records of any queries made to the Virtual School were being kept as it was not yet possible to predict levels of future demand and this may result in a growth bid going forward.

In relation to recruitment and retention of staff, the Director of Children’s Social Care confirmed that the target for permanent staff was 95%.  The Service had been reasonably successful in attracting good quality newly qualified social workers.  In addition to this the Service had invested in ‘Grow Your Own.  There was currently 18 social worker vacancies across the service (excluding management vacancies).  Nationally there was stiff competition for social workers and this made it more difficult to attract staff.  It was acknowledged that the Council’s Caseload Promise did help to support recruitment and retention initiatives.

RESOLVED: That the Portfolio Holder be recommended to note that the latest projected overspend of £2,997,000 is forecast on the controllable budget, based on information as at December 2018.