The Overview and Scrutiny Committee of Barking and Dagenham Council met on Wednesday 11 February 2026 to discuss the Educational, Health and Care (EHC) process and a financial review of public health spending. The committee reviewed data gathered and reported on the EHC process, noting a significant increase in demand and pressures on services. They also examined a financial review of public health spending for 2022/23 and 2023/24, which identified potential misapplication of funds and led to the implementation of new financial controls and oversight measures.

The EHC Process: Data and Reporting

The committee received a detailed report on the data gathered and reported concerning the EHC process. Jane Hargreaves, Commissioning Director of Education, and Denise Watts presented the findings, highlighting a sustained and significant rise in demand for EHC needs assessments and plans. Over the last four years, there has been a 23% increase in referrals, with a notable jump from 2024 to 2025. This increase is attributed to the complex needs of children and young people, families moving into the borough, and emerging needs in early years.

The report detailed the statutory returns required by the Department for Education (DfE), including data on assessment plans, placements, and needs. It was noted that while the council is committed to inclusive, local schools, the system is under strain due to resource limitations. Actions taken to improve the process include realigning the team to dedicate staff to initial assessments, focusing on assessing pupils with the highest needs, and developing a consistent approach to decision-making.

A significant challenge highlighted was the timeliness of issuing EHC plans, with performance falling below the national average. The council is working to improve this through weekly internal monitoring and case-by-case reviews. The age breakdown of children with EHC plans shows an increase across most cohorts, with a particular rise in primary school-aged children and those aged 16-19 requiring post-16 SEND provision. The primary needs identified are increasingly social, emotional, speech, language, and communication needs, rather than Autism Spectrum Disorder (ASD).

The committee also discussed the government's reforms to the SEND system, noting that the promised white paper had been delayed. Local authorities will be required to develop a Local SEND Reform Plan, with some funding attached. The government has announced plans for inclusion units in all secondary schools and is absorbing 90% of Dedicated Schools Grant (DSG) deficits, though Barking and Dagenham is not expected to benefit significantly from the latter.

Financial Review of Public Health Spend

The committee reviewed a financial report concerning public health spending for the years 2022/23 and 2023/24. Matthew Cole, Director of Public Health, and Councillor Worby, Cabinet Member for Adult Social Care, Health and Housing, presented the findings. The review identified potential non-compliant expenditure and a lack of transparency around allocations, with an estimated £1.8 million in potential ineligible spend. This arose partly because the public health grant had been used to supplement the general fund, rather than solely for its intended purposes.

To address these issues, the council has implemented a new approach to managing the public health grant. This includes establishing a Public Health Grant Executive Assurance & Oversight Board, revising budget accountability to give the Director of Public Health direct oversight of all allocations, and introducing enhanced internal controls and monitoring. A detailed memorandum of understanding is now required for any department undertaking a project funded by the grant.

Crucially, the Department of Health and Social Care (DHSC) has confirmed that the council does not have to repay the £1.8 million, provided the general fund repays this amount to public health for reallocation. This decision was based on the council's proactive approach in identifying and addressing the issues, and the robust measures put in place to strengthen financial management. The council is also working to align public health grant expenditure with corporate priorities and commitments to reduce health inequalities.

During the discussion, concerns were raised about the historical lack of oversight of the public health grant spend by the Director of Public Health and the high turnover of staff in the accounts department. Councillor Muazzam Sandhu questioned who authorised the diversion of funds and what disciplinary actions had been taken, to which it was explained that the review focused on learning and improvement rather than disciplinary action. The council's healthy life expectancy has not improved, and a strategic realignment of public health grant and other funds is planned to address this, with a focus on the 18-39 age group and mental health.

Councillor Phil Waker raised concerns about the historical lack of oversight and questioned why external auditors had not identified the issues. He also highlighted the link between poor housing and health stresses, suggesting that public health money could be used for building suitable housing. The Director of Public Health confirmed that work is being done on damp and mould and homelessness using the public health grant.

Councillor Val Masson expressed a lack of reassurance regarding the department's strategic strength and the clarity of its spending plans and impact measurement. The Director of Public Health explained that the strategy is guided by the joint local health and wellbeing strategy and that the new oversight board aims to provide clearer strategic alignment and focus on priorities such as early development and healthy life expectancy.

Housing Update on Priority 7 (Good Housing/Prevention of Homelessness)

The committee received an update on Priority 7 of the Corporate Plan, focusing on good housing and the prevention of homelessness. The report indicated strong performance in homelessness prevention, with a reduction in households in temporary accommodation and families in bed and breakfast accommodation. A Tenancy Update Visit Programme has been introduced to engage with tenants and identify those requiring high support. The council is also working to address properties not meeting the decent home standard, particularly in the private rented sector.

Work Programme

The committee noted the work programme, with a request to place an item on the BD Group and a social housing item early on the 2026-2027 work programme.

The meeting was declared closed at 8:58 pm.