The Children's Services Scrutiny Sub-Committee met to discuss the Directorate's budget position for 2025/26, reviewing significant financial pressures and proposed savings. The committee also reviewed the work programme for the upcoming year, noting the impact of the upcoming election on future scheduling.

Budget Position Report - Children, Families and Education 2025/26

The committee received an update on the 2025/26 budget position for the Children, Families and Education (CFE) Directorate. Councillor Ben Kind, Cabinet Member for Children, Young People and Families, highlighted the context of 14 years of austerity and the ongoing impact of national policies on local government funding, particularly for children's services. He noted that while funding had increased, it did not reverse a decade of underfunding and was occurring alongside rising demand due to factors such as the long-term effects of austerity, Brexit, and global pressures.

Mark Whiffin, Assistant Director of Finance for CFE, presented the report, detailing a forecast net budget pressure of £6.361 million as of September 2025. This pressure is primarily driven by demand-led statutory services, including Special Educational Needs and Disabilities (SEND) transport (£2.8m), children's social care placements (£1.9m), and support for families with No Recourse to Public Funds (NRPF) (£0.5m). He also explained that £4 million of growth funding had been set aside corporately for CFE but had not yet been allocated, and that the treatment of reserves had added £1 million of pressure.

The report detailed a savings programme of £3.562 million for 2025/26, with £2.7 million (76%) reported as delivered or on track. However, £0.8 million of savings were identified as at risk due to reliance on external factors such as placement availability and workforce recruitment. The committee discussed the RAG status of savings, with red indicating inherent uncertainty in demand-led services rather than a lack of action.

Several specific savings initiatives were discussed:

• SEND Transport and Direct Payments: Sophie Garner explained that direct payments for SEND transport were being funded from the Designated Schools Grant (DSG) High Needs Block, focusing on the non-statutory element for 16-19 year olds to support independence. This shifts pressure from the general fund.
• Residential Placements: Daniel Stoten, Director of Integrated Children's Commissioning and Youth Services, clarified that proposals for developing residential units were varied. This included exploring a transitional children's home for 16-25 year olds and establishing block contracts with providers for residential children's homes to improve value for money and tailor provision.
• Magic Notes Software: A saving of £50,000 was identified from the use of Magic Notes, an automated note-taking system for social workers. Bob Bielby, Director of Practice, Performance and Partnerships, described the software as transformational in freeing up social workers' time from paperwork, improving recording accuracy, and reducing burnout. Councillor Kind added that this was an example of invest to save initiatives.
• Reduction in Agency Staff: Councillor Ben Kind reported a significant reduction in the agency rate for children's social care from approximately 50% in 2022 to 14.1% currently, attributing this to the work of the social work academy and improvements in the directorate's reputation.
• In-House Fostering Expansion: A significant saving of £900,000 over three years is projected from investing in and expanding in-house fostering. Daniel Stoten explained that an annual investment of approximately £200,000 in supervising social workers, recruitment, and logistics could lead to 30 new in-house placements. This is estimated to be 30-40% cheaper than using independent fostering agencies, while also improving quality and keeping children closer to home. Councillor Cole inquired about how the benefits for young people would be evaluated, and Councillor Kind, along with Bob Bielby and Daniel Stoten, emphasised the importance of placement stability, local connections, and the long-term commitment of in-house carers.
• Improved Early Intervention in Children's Social Care: This initiative, linked to the government's Families First model, aims to realign teams around early intervention, bringing partners together to divert families from more costly interventions and prevent children from entering care. A unique ID code for each young person is proposed to facilitate seamless service provision across different settings.

Concerns were raised by Councillor James Bryan regarding a new saving proposal for routes out of care, which he understood to involve encouraging children to leave care before the age of 18. Councillor Kind clarified that this was about earlier permanence and not about forcing children out of safe spaces. He assured the committee that the proposal had undergone an equalities and justice panel impact assessment and that decisions would be based on individual young people's needs.

Children's Services Scrutiny Sub-Committee Work Programme 2025-26

The committee reviewed its work programme for the upcoming year. Councillor David Oxley, Chair of the Subcommittee, noted that due to the upcoming election in May, the programme could not extend beyond that period. The work programme included discussions on SEND and Alternative Provision, the Ofsted report, and Elective Home Education for the July meeting, and the effectiveness of the Corporate Safeguarding Policy for the October meeting. The February meeting was primarily focused on the budget.

The committee also reviewed the Action Monitoring Log, with a request made for an update on three-month RAG-rated items from previous meetings. Councillor Oxley requested a review of these items, with a response to be provided after the election.