BRIEFING PAPER: STRATEGY AND CAPITAL INVESTMENT
PORTFOLIO: EDUCATION & SKILLS
What is the strategy behind the budget proposals?
Education and Early Intervention services fulfil a wide range of statutory duties to support the education and wellbeing of children and young people in Hertfordshire. The budget proposals ensure that sufficient resources are available to promote a positive childhood, maintain high standards of education and narrow the gap for Hertfordshire’s most vulnerable children and young people, while also achieving the required financial savings. Budgets are actively monitored and managed in order to secure continuous improvement and challenge areas of high expenditure.
Education and Early Intervention will continue to work closely with Safeguarding and Specialist Services, to achieve better outcomes for children and families at lower costs. A key part of the strategy of children’s services is to reduce the demand for and cost of safeguarding and children looked after services, through effective early intervention and prevention.
What are the capital investment priorities for the service?
The major priority for the service is the expansion of school places. There are waves of expansions at different stages of the process – in implementation, in feasibility and in early planning. Costs are met from DfE capital grant and developers’ contributions.
Hertfordshire has one of the largest programmes of school expansions of any local authority and spending reflects this pressure. The pressure on places was experienced earlier in Hertfordshire than some other local authorities across the region. For September 2012, including free schools, an additional 46 forms of entry at reception were added in both permanent and temporary accommodation. This is over twice as much as any other local authority in the region with HCC experiencing unprecedented rises in demand in certain localities. The average cost of an additional permanent one form of entry in a primary school is approximately £2.75m and has been progressively reduced.
The growth in the demand for school places continues in primary, with expansion projects for September 2013 now on site and a further set of expansion options for 2014 in development. A major programme of investment in the maintenance of primary school buildings is also underway.
£1.8M of capital has also been allocated from the DfE to support the expansion of free places for two year olds. The intention is to use this funding to support existing providers. Other funding will support refurbishments and expansions to increase the number of places available and ensure the Local Authority meets its statutory duty.
What are the main policy issues over the medium-term? How do the new responsibilities for Public Health fit in?
The main policy issues for Education and Early Intervention over the medium term are:
Managing the transfer of responsibilities and funding away from the Council to Academies and to the DfE, so as to maximise the potential benefits and avoid any adverse impact on standards in Hertfordshire.
Our strategy is to move even further away from HCC direction and control, towards partnerships with schools and school funding of activity. We are doing this in practice through the development of Herts for Learning, the devolution of funding to schools for various functions, schools involvement in Special Educational Needs (SEN) via the Developing Special Provision Locally process, the strengthening of relationships with the Schools Forum and the support and development of local partnerships with schools.
Delivery of the necessary number of additional school places (referred to as a capital priority, above).
Special Educational Needs.
The Government’s special educational needs and disability (SEND) Green Paper[1] proposes a range of significant reforms, including a new approach to identifying SEN, a new single assessment and plan to replace the current SEN Statement and the option of a personal budget for all families with a Statement or new single assessment and plan. Hertfordshire is in a strong position to shape and respond to these reforms, as one of 20 SEND pathfinder areas[2]. SEN funding is met from the Dedicated Schools Grant (DSG). The Government is currently preparing proposals for the future level and means of this funding, following a consultation in 2011.
Early Intervention.
Early Intervention services play a key role in catching emerging problems early and therefore reducing the demand for and high cost of safeguarding and children looked after services. Effective early intervention, for example through children’s centres, Targeted Youth Support and through our emerging Thriving Families approach, will play a key role in improving outcomes and reducing costs of statutory services.
Targeted Youth Support can already evidence impact in reducing the number of 16-17 year olds coming into care and those that do enter, stay on average around one third less time in care. As part of the Thriving Families arrangements, we will support around 1,350 of our most vulnerable families to tackle the barriers they face and improve outcomes such as poor attendance at school, youth crime, antisocial behaviour and adult worklessness.
Enhanced free early education for disadvantaged 2 year olds.
The Government is funding an increase in entitlement to free early education, which will cover around 40% of the population by 2014/15. It is estimated that £11m additional annual revenue grant will be allocated through DSG by 2014/15 to pay for this. The project plan to deliver the expansion is on track, with 1,000 free places provided in 2012/13. A Family Support Core Offer model is being piloted in February 2013 to ensure that an early help offer is in place for these families. By September 2013 the statutory duty will require 2,250 places to be available to families eligible for Free School Meals (FSM). This will rise to approximately 4,000 places for families with identified needs by September 2014.
Health & Wellbeing Board.
Hertfordshire was an ‘early adopter’ for the new Health and Wellbeing Boards established through the Government’s Health and Social Care Bill and health reforms[3]. New partnership commissioning groups for children and young people have been established:
- Early Intervention and Prevention;
- Children with Complex Care and Additional Needs; and
- Children Living Away from Home.
Each of these commissioning groups has established commissioning strategies and plans. It will be important to maximise the benefits of these groups, to achieve better outcomes and use of resources through joint commissioning.
Joint working through the new partnership commissioning groups under Hertfordshire’s Health & Wellbeing Board also offers opportunities to achieve economies of scale and better use of resources through joint commissioning.
New responsibilities for Public Health, now and in future will provide opportunities for greater collaboration and co-ordination of services at a local level, in particular the relationship between Health Visiting and existing HCC services. There are also potential opportunities to mitigate the consequences of HCC reductions in activities with schools around healthy eating and healthy schools programmes.
Sector-led Improvement.
Hertfordshire is actively engaged in the development and implementation of sector-led improvement for children’s services. These arrangements are being overseen by the national Children’s Improvement Board[4]. The new approach will be based on the self assessment and improvement activities of councils, reinforced by rigorous peer review and challenge.
What planning has been done in connection with proposed welfare reforms?
Officers have been actively working with the Head of Money Advice to understand the Welfare Reforms and the implications for our services.
The existing funding for vulnerable families coping with emergencies is earmarked, so that it continues to be available.
It appears that the Government’s changes to tax credits and welfare benefits are increasing levels of demand for services. These changes are complex and wide-ranging, and further changes are taking place during 2013. Any increase in rates of poverty as a result of reductions in out-of-work and other benefits may lead to greater incidence of family stress and family breakdown. Reductions in housing benefit and the benefits ‘cap’ could lead to an increase in the number of low-income families moving out of London to Hertfordshire, where rents are relatively cheaper. Both of these effects could result in an increase in the demand on Safeguarding & Specialist Services.
How confident are you in your demographic predictions given the possible impact of welfare reforms? What impact will these demographic changes have on service requirements and demand?
Significant work has been undertaken to ensure that demographic predictions are as accurate as possible. The 2011 Census revealed that there were significantly more children in Hertfordshire than in 2001[5]. However it is acknowledged that with the changes in welfare reform these need to be kept under review, particularly in terms of migration into Hertfordshire.
How are the budget proposals consistent with Corporate Priorities?
Education and Early Intervention, working with partners, makes a leading contribution to key priorities in the County Council’s Corporate Plan, particularly to Secure a Good Education for All and to Ensure a Positive Childhood. These priorities are reflected in the Children’s Services Plan[6], the commissioning strategies and plans being taken forward by the new partnership commissioning groups under Hertfordshire’s Health & Wellbeing Board, and in the development of new relationships with schools and academies. The budget proposals ensure that sufficient resources are available to meet these priorities, while also achieving the required financial savings.
The budget proposals also contribute to other council priorities, including:
- Maximising independent living - through supporting care leavers, and planning for adulthood those who are disabled and those at risk of homelessness.
- Support economic wellbeing - through work to prepare young people for adulthood and minimise the number who are not in education, employment or training.
- Promote safe neighbourhoods - through targeted youth support (including youth justice work) and wider prevention and anti-bullying work.
- Reduce carbon emissions - through providing more local special educational provision, rationalising the use of property and changes to home to school transport.
- Be a leading council - through pilot and ‘pathfinder’ work in free childcare entitlements, payment-by-results for children’s centres, special educational needs and disability and Troubled Families.
What is the scope for maximising external funding for capital investment (e.g. Government grants, developer and other third party contributions, etc)?
Schools capital investment is limited to that which can be met from external funding, without any call on HCC’s own resources. Funding from DfE is largely in the form of capital grant. It is complemented by developers contributions, based on planning agreements negotiated over years as housing developments are approved. Substantial effort is directed towards inputting to District Councils’ Local Development Frameworks, the developing Central Infrastructure Levy (CIL) and other planning documents to seek to maximise long term availability of sites and other forms of contribution. The Council is continuing to work with FreeSchool providers in areas of demand for school places, so as to bring in further external funding. Schools Forum has agreed to the continuing use of substantial sums of Dedicated Schools Grant (DSG) for maintenance works to primary schools.
What is the scope for rationalising property (e.g. by sharing with others, by service re-design, by better utilisation, etc) and so generating capital receipts?
Is there a backlog of maintenance and if so, how is this being managed?
Office accommodation is continually reviewed at the point of leases ending or wherever there is the opportunity to relocate staff onto a main site.
For schools, the scope for rationalisation is limited, due in part to the degree of autonomy of schools and the legal framework determining the way in which any surplus school land may or may not be used. However, a main priority in expansion planning has been to deliver increased capacity by expanding existing schools, so as to avoid land acquisition costs, use resources more intensively and generate efficiency savings in the Schools Budget.
There is a significant backlog of maintenance, with a programme of works being undertaken within the resources available aimed at highest priority works. We have very substantially improved the volume, efficiency of delivery, and value for money of maintenance works, in part through the new consultancy and works contracts (replacing the previous partnership with Mouchel). Responsibility for maintenance of Academies has been centralised by the DfE. No HCC funding is directed to schools maintenance, which is limited to that which is available in the form of DfE capital grant or DSG.
How has the corporate priority for low carbon/sustainability influenced the capital programme?
School maintenance projects on roof replacement, window walling and heating systems all have a major positive impact on energy efficiency.
The Marriotts/Lonsdale and Nobel school projects in Stevenage include large photovoltaic arrays (solar panels), generating income via the FITS tariff. However, due to the imperative to minimise capital costs of school expansions, we have not gone beyond what is required by regulations for new provision when schools are expanding.
Is the programme achievable on budget and time? What are the risks of cost overrun or slippage?
There are inevitably major challenges in delivering large and complex capital programmes. However, the first wave of school expansions will be completed within its £83m capital budget. Places were made available at all schools which we intended to expand in September 2012. We expect the same degree of performance for September 2013 expansions and again for 2014.
PORTFOLIO: CHILDREN’S SERVICES
What is the strategy behind the budget proposals?
Safeguarding & Specialist Services fulfils the County Council’s statutory duties to safeguard and promote the welfare of children who are in need[7]. The budget proposals ensure that sufficient resources are available to meet the needs of Hertfordshire’s most vulnerable children, while also achieving the required financial savings. Budgets are actively monitored and managed in order to secure continuous improvement, challenge areas of high expenditure and seek opportunities to improve our use of resources.
Safeguarding and Specialist Services works closely with the Education and Early Intervention service group, to achieve improved outcomes for children, young people and families at lower costs. A key part of the strategy for children’s services is to reduce the demand for and cost of safeguarding and children looked after services, through effective early intervention.
What are the capital investment priorities for the service?
Safeguarding & Specialist Services is not a ‘capital-intensive’ service area. The capital investment priority for this service is to maximise the value for money of the service’s property assets, such as children’s homes. This includes maximising the use of Hertfordshire’s PFI-funded properties, including the Watford Adolescent Resource Centre.
Investment is also planned in the Integrated Children’s System (ICS), to ensure that the electronic recording systems used by social workers and other staff are as effective as possible. We continue to work with Corporate services and other local authorities to minimise and share the costs of these changes.
What are the main policy issues over the medium-term? How do the new responsibilities for Public Health fit in?
Explaining joint commissioning and maximising opportunities for pooled budgets with health; further developing arrangements for children’s commissioning under the Health & Wellbeing Board; strengthening early intervention service across partnerships; implementing key national initiatives.
Munro Review[8]. The Munro Review proposed a number of changes to child protection policy and practice, and many of these have been accepted by the Government. This will include changes to the ‘Working Together’ statutory guidance and the Framework for the Assessment of Children in Need and their Families, a new Ofsted inspection framework, a new post of ‘Principal Child and Family Social Worker’, and new requirements for local and national child safeguarding performance information. A full implementation programme is in place within Children’s Services and includes work stream workforce development and Early Intervention.
Family Justice Review[9]. The Family Justice Review, published in November 2011, made far-reaching proposals to improve the system so that it is quicker, simpler, fairer and more cost-effective, whilst continuing to protect children and vulnerable adults from risk of harm. This includes significant changes to the way that care proceedings are handled. Work is progressing with local judiciary and legal services as well as a training program to ensure the service is able to meet local and national expectations.
Health & Wellbeing Board.
Hertfordshire was an ‘early adopter’ for the new Health & Wellbeing Boards established through the Government’s Health and Social Care Bill and health reforms[10]. New partnership commissioning groups for children and young people – for Early Intervention & Prevention; Children with Complex Care & Additional Needs and Children Living Away from Home have been established as sub-groups of Hertfordshire’s Health & Wellbeing Board. Each of these groups has commissioning strategies. Identifying priorities for the coming year and which are inline with the overall Health and Wellbeing priorities for Hertfordshire.
Sector-led Improvement. Hertfordshire is well engaged in the development and implementation for sector-led improvement for children’s services, which are being overseen by the national Children’s Improvement Board[11]. The new approach is based on the self assessment and improvement activities of councils, reinforced by rigorous peer review and challenge.