The Children and Young People's Overview and Scrutiny Committee of Durham County Council met on Friday 25 September 2026 to discuss the implementation of SEND reforms, the financial outturn for Children and Young People's Services, and the committee's work programme. The meeting also reviewed performance management reports for the first quarter of the 2026/27 financial year.

Special Educational Needs and Disabilities (SEND) Local Area Reform Plan

A significant portion of the meeting was dedicated to discussing the SEND Local Area Reform Plan (LARP) for County Durham. The report outlined the national SEND reforms, which aim to create a more inclusive system with earlier intervention and a focus on mainstream provision. Key principles include early identification and support, local and mainstream-led provision, fair and consistent national expectations, effective use of evidence-based support, and shared responsibility across education, health, and care.

The reforms propose a new layered system of support, moving away from the current binary system of SEND support versus Education, Health, and Care Plans (EHCPs). Individual Support Plans (ISPs) will become the core planning document for all children and young people with SEND, with EHCPs reserved for the most complex needs. The plan details a phased implementation timeline, with ISPs and the new layered system expected to apply from 2030 onwards.

The report highlighted that demand for EHCPs had increased substantially, with a 25% rise in requests in the first six months of 2026 compared to the same period in the previous year. County Durham had submitted its LARP to the Department for Education, anticipating significant government funding towards its high needs budget deficit. The plan's structure includes vision, strategy, monitoring and evaluation, governance, and central government support. The reforms are backed by substantial investment, including funds for inclusive mainstream settings, Experts at Hand services, and specialist and SEND school places.

The LARP emphasizes greater responsibility on mainstream schools to meet needs earlier, stronger expectations of multi-agency working, and a shift for local authorities towards system leadership. Co-production with children, young people, families, and partners has been central to the plan's development, with feedback shaping priorities such as early help, access to support, communication, quality of support, partnership, and system change. The delivery approach is a multi-year, system-wide transformation programme, with Year 1 focusing on design, mobilisation, and pilots, and Years 2 and 3 on scaling and embedding change.

Children and Young People's Services Financial Outturn and Forecast

The committee received reports detailing the final outturn for Children and Young People's Services (CYPS) for the 2025/26 financial year and the forecast outturn for the first quarter of 2026/27.

For 2025/26, CYPS reported an overall overspend of £8.202 million (4%) against its revised annual budget. This was primarily driven by an overspend of £14.170 million in Social Care, largely due to increased costs for Children Looked After (CLA) placements and staffing pressures. This was partially offset by underspends in Education and Skills, notably in Home to School Transport, where transformational work and route optimisation had led to savings. The Dedicated Schools Grant (DSG) centrally retained block also showed an overspend of £15.850 million, with the High Needs Block accounting for the majority of this. The report noted that the submission of the SEND Local Area Reform Plan was expected to lead to significant funding that would reduce the cumulative deficit.

The forecast for the first quarter of 2026/27 indicated a projected overspend of £10.278 million (4.6%) against the revised annual budget. Social Care was again the main driver of this overspend, with significant pressures in CLA placements and staffing. The report detailed a budget transfer from Home to School Transport to Children's Social Care to help manage these pressures. The Early Help, Inclusion and Vulnerable Children (EHIVC) service was also forecasting an overspend, largely attributed to the Aycliffe Secure Centre's reduced occupancy following an Ofsted inspection. The Education and Skills service was forecasting an overspend due to the withdrawal of UK Shared Prosperity Funding. The Dedicated Schools Grant – Centrally Retained Blocks forecast showed a significant projected overspend of £31.105 million, primarily within the High Needs Block.

Quarter 1 2026/27 Performance Management Report

The committee reviewed the Quarter 1 2026/27 Performance Management Report, which provided an update on progress against the Council Plan 2025-30. The report indicated a mixed but broadly positive performance across the council's five strategic ambitions.

Under the Building Better Communities ambition, positive progress was noted in Youth Justice Service outcomes, with a 28% reduction in First Time Entrants (FTEs) for the second consecutive year, attributed to strengthened early identification and diversionary approaches.

For Caring For Our People, demand in statutory children's social care remained high, with an increase in older children entering care with complex needs, leading to higher-cost placements. However, the Durham Cares Plan was actively responding through prevention, expanded in-house fostering, and plans to increase capacity in children's homes. An Ofsted Focused Visit provided strong assurance on the council's approach to children in unregistered provision. EHCP timeliness remained excellent at 85%, although the high number of new requests was noted as a potential future pressure. The SEND Local Area Reform Plan had been co-produced and submitted to the DfE. Elective home education had increased, with multi-agency oversight in place.

The report also highlighted progress in Supercharging our Economy, with positive trends in training and skills, although a decline in apprenticeship uptake was noted.

CYPOSC Work Programme Report

The committee reviewed its draft Work Programme for 2026/27. The report outlined that the programme had considered key strategic documents, partnership plans, and government legislation. It was designed to be flexible to accommodate emerging issues and included formal meetings, informal information sessions, and briefing reports. Members were invited to comment on the proposed draft work programme and agree it, noting the flexibility offered to respond to emerging issues. Specific items scheduled for discussion included the SEND Local Area Reform Plan, financial reports, and performance management updates.