Four more local authorities have reached deals with the Department for Education to reduce their high-needs deficits but five council areas have seen their payments put on hold.
Bristol, Devon, Wiltshire and Bracknell Forest have had plans accepted to reform their high-needs provision and bring down cumulative deficits on their Dedicated Schools Grant (DSG) under the government’s Safety Valve programme.
But the DfE has said the Safety Valve agreements with Bath and North East Somerset, Cambridgeshire, Dorset, Hillingdon and Norfolk are currently under review, with payments suspended until revised agreements are reached.
Under the programme, the DfE agrees to pay areas additional cash through the DSG if local authorities reform their high-needs provision, with the aim of tackling existing deficits caused by high-needs spending.
SEND: Councils’ high-needs funding deficits
Devon is forecasting a maximum DSG deficit of £153.4 million at the end of 2023-24, rising to a high of £160.9 million for 2025-26.
But the council is forecasting that this maximum DSG deficit will have reduced to £95 million by 2031-32 after action is taken.
The Safety Valve agreement sets out that the DfE will pay Devon County Council £95 million in additional DSG payments in instalments between this year and 2031-32 to help it get rid of its deficit.
The DfE will pay Bracknell Forest £16 million, Bristol £53.8 million and Wiltshire £67 million.
Action plans to reform high-needs provision differ between local authorities, but all four of the new agreements include action to improve early intervention and expand local special educational needs and disabilities (SEND) provision.
The agreements state that they are subject to review if DSG funding levels change from what was assumed, if there are significant changes to national SEND policy, if there is insufficient progress on reducing DSG deficit or if councils are awarded extra capital funding.
The review process for the five areas now under review will assess the impact of their changes in circumstances since the agreements were made.
The agreements for Hillingdon and Dorset were subject to review if they were awarded additional capital funding support. While Norfolk, Cambridgeshire and Bath and North East Somerset’s agreements were subject to review if free school bids were successful.
Other areas with large deficits
The bailout programme is part of a range of government measures aimed at reforming support for pupils with SEND amid rising costs. Concerns have been raised that these measures will aim to “effectively ration education, health and care plans (EHCPs)”.
Tes reported earlier this year that five areas were in negotiations to make Safety Valve agreements with the DfE. These were Bournemouth, Christchurch and Poole (BCP); Cheshire East; Wiltshire; Devon; and Bracknell Forest.
It was subsequently reported that Bristol was also in negotiations. BCP saw its proposals, which would balance the DSG within 15 years, rejected by the DfE last week.
The council remains in discussions with the DfE about joining the Safety Valve programme.
BCP chief executive Graham Farrant said: “We always knew the council’s recent Safety Valve proposal challenged the DfE’s criteria, and we have acted with integrity in making clear that we will not sign up to a deal that would see our services fall below the statutory requirements as set by government.”
A spokesperson for Cheshire East Council said conversations were continuing with the DfE and the Department for Levelling Up, Housing and Communities to establish support in SEND transformation and how the high needs deficit will be resolved.
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