Agenda item

Report to follow.

The Select Committee received a report providing an overview of the financial performance of Children’s Social Care for the 2018/19 financial year and the measures being taken to balance the budget in 2019/20 and future years. 

A dramatic increase in the cost base of Children’s Social Care over the last three financial years was noted, a situation not unique to Oldham.  The increased costs meant that, even after the allocation of reserves and additional resources, the Service had overspends of £3,420k in 2017/18 and £3,967k in 2018/19.  Much of the use of reserves in 2018/19 had been to support short term investments to implement the Children’s Services Operating Model and Structural Resources Plan, a three-year strategic recovery plan to fundamentally address the problems faced in Children’s Social Care.  The submitted report focused therefore on a review of the outturn position for 2018/19, the increased resources allocated for 2019/20 and 2020/21, and the measures being taken to manage the budget in 2019/20 and future years.

The overspend in 2018/19 had occurred in each of Children in Care, Children’s Safeguarding, and Fieldwork and Family Support, the three Service areas within Children’s Social Care.  74% of the overspend was attributable to Children in Care and an analysis of the overspend was presented, with detailed consideration being given to the costs and circumstances relating to Social Care Placements, including out of Borough placements and fostering arrangements, to youth on remand services, and to short breaks for children with disabilities.  A consideration of budget variances in Children’s Safeguarding and in Fieldwork and Family Support was also presented. 

In response to queries, it was advised that the youth on remand budget was volatile and difficult to predict due to the courts being able to remand young people to the care of the local authority and the varying number of high risk offences occurring each year.  With regard to the support of unaccompanied asylum-seeking children, the Council received a set amount per child in grant and made returns to the DfE that determined the allocation.  It was advised that services provided cost more than the grant received, though the Home Office had agreed recently to an increase in the grant available.  The Interim Director acknowledged that out of Borough placements were a recurrent issue and that while in Borough or local placements were sought, out of area placements were sometimes needed for safety reasons.  However, a successful model at North Yorkshire was being investigated to see if practice could be taken on board in Oldham.

The Children’s Social Care budget had been increased by £4,611k in 2019/20 to respond to spending pressures and to support implementation of the Children’s Services Operating Model and Structural Resource Plan. This still left a potential budget pressure pending the impact of the Operating Model and so additional resources had been allocated to areas of overspend on a risk assessed basis.  In anticipation of continued financial pressures and noting that the new operating arrangements needed time to bed in, a sum was earmarked in reserves to provide additional support, if required.  Formal financial monitoring would commence at month 3 and monitoring reports would be submitted to this Committee.

The largest factor in reducing the budget deficit was implementation of the Operating Model.  Delivery of the Structural Investment Plan would see a permanent senior leadership team reducing the need for interim agency staff at a senior level: completion of the new senior structure was estimated for completion in October 2019.  The second phase would see the phased roll out of additional social work, placements and commissioning capacity to provide a fit for purpose Social Work structure that would reduce the percentage of agency social work.  To address short term financial pressures, senior leadership within Children’s Social Care had been tasked with reducing areas of cost pressure, and joint work with Finance colleagues was underway to review working arrangements to ensure achievement of value for money.

In response to a query as to the success of the Operating Model, it was advised that staff morale was high and that there was interest being shown in people wanting to come to work for Oldham.  Once recruitment had progressed it was to be hoped that the organisation, working in conjunction with the CCG, police and other partners, would be fit for purpose and successful.  There was a greater focus on training and development of staff, and a commissioning service established to broker placements in the biggest cost areas.  Referring back to earlier considerations of sickness absence, the Interim Director advised that absence rates were falling, that new structures would see reduced caseloads, new accommodation had been identified and work was being undertaken with Fit For Oldham to address stress issues.

Noting the investment made, Members queried the current position regarding OFSTED ratings.  The Interim Director advised that an OFSTED judgement in January 2019 had delivered a ‘requires improvement to be good’ assessment while stating that they were satisfied with what was proposed and being implemented.  A further visit to review practice was expected, possibly in January 2020, to review practice but full inspections were tended to be at three-year intervals.

RESOLVED that the report be noted.