1. Alternative Provision (AP)& Permanent Exclusions Agenda Item 7b Forecast Budget Pressures and Solutions

4. Secondary Pupils in AP Placements - 13-14 to 14-15 Number of Pupils

5. Permanent Exclusions Northants is experiencing a significant increase in the numbers of excluded pupils at both primary and secondary In addition the data above would indicate that more secondary pupils are being retained in AP provision. Re-integration back into mainstream provision also has a major impact on costs in this area. More analysis will be undertaken on this aspect.

6. Permanent Exclusions AP DSG budget of £3.1 million In 13/14 an under spend of £427k was achieved In 14/15 the projected outturn is a £22k overspend In 15/16 We forecast an overspend of £408k if no action is taken

7. Budget Projections 13-14 outturn 14-15 Actuals to Nov, Estimate to Mar 15-16 Estimate Budget3,229,4263,119,426 DSG recoupment-1,840,000 -2,108,333 Net budget available1,389,4261,279,4261,011,093 Plus clawbacks628,990646,131746,131 Available funding2,018,4161,925,5571,757,224 AP payments1,591,3891,817,9621,682,066 Other Provisions – Prim & Sec 130,000483,976 Estimated year end position-427,02722,405408,818

8. Notes on table above The EFA have proposed that the AP lump sum increases from £8k to £10k from September 2015. If agreed there will be a corresponding reduction in the AP top up rate to offset this increase. New provision is being created at both primary and secondary level following a recent procurement exercise

9. Notes on table above The new provision for up to 16 permanently excluded pupils in key stages 1 and 2 will ensure that we are able to place children appropriately and undertake work to enable them to return to mainstream schools within one school year The new provision for up to 20 permanently excluded pupils at key stage 3 and 4 will ensure there is increased diversity as well as sufficient supply to cope with the increased demand that is in evident

10. Reducing Permanent Exclusions The Council recognises that it is preferable to support schools to avoid permanent exclusions wherever possible. The Council has commissioned Maplefields School and Kings Meadow School to provide initial support to all primary schools who have a child at risk of permanent exclusion. The Council is also working with four primary schools through the Social, Emotional and Mental Health Panel to ensure nurture groups and consultation provision for pupils at risk of permanent exclusion. exclusions.

11. Reducing Permanent Exclusions The Council will be developing plans jointly with secondary school Head Teachers so that both the Council and individual schools have a joined up approach to avoiding permanent exclusions.

12. Models from Other LAs Derby: Schools Forum created a sub group of heads who recommended full year charge £25k and 2 PRU places per school on a rotating basis. Notts: Schools Forum has approved a cost recovery mechanism (CRM) secondary & Primary schools for permanently excluded pupils. Leics: Schools Forum signed up to the original principles of budgets devolved to area behaviour partnerships led by schools. An SLA with each of the five lead schools (one from each area) who chair the partnerships and co-ordinate the administration. Quarterly performance reporting to Forum.

13. Overview More pupils are being excluded at both primary and secondary New provision is being created at primary with a key aim of reintegration Alternative AP provision is being created at secondary to deal with increases and widen choice Additional numbers and increased hours are increasing costs of Alternative Provision AP Costs are increasing since 2013-14 by £400k/£500k p.a. - fortunately in 2013-14 there was a £400k underspend. The LA will work with schools to identify how best to reduce the number of future permanent exclusions

14. Current clawbacks See below extract from high needs funding guidance – Following changes discussed at Schools Forum in July 2014 the clawback applied via the schools transfers process to all primary, secondary and special schools who permanently exclude a pupil is as follows: a) Lump sum charge of £3,000 per pupil permanently excluded b) AWPU deduction pro rata on the number of school weeks from the date of permanent exclusion to the end of the local authority financial year (i.e 31 March)

15. Proposal To increase clawback charge a) by £2,000 to £5,000 per child for Primary and Secondary to cover budget shortfall. We think the above is fairer than for example reducing the schools formula AWPU values for schools as funding formula changes would impact on all schools as opposed to increasing the claw back charge which solely impacts on schools who permanently exclude There are options regarding from when the increased charge should apply. The 1 st April 2015 is proposed but could this lead to more exclusions in March to avoid the increased charge?