Liverpool is “now seeing the financial cost” of an increase in pupils with educational health care plans (EHCP).
John Byrne, strategic finance manager for education and schools at Liverpool Council, said estimates of a potential overspend in school budgets as a result of pupil numbers of those with an EHCP posed a “very grey cloud” over the local authority. Estimates made by the city’s school forum have indicated that almost 150 additional places could be needed as Liverpool faces an increase in pupils with educational health care plans (EHCP) over the coming years.
It is thought that the cost of specialist placements could lead to an overspend of £9.4m by 2023-24. Mr Byrne told a meeting of the Liverpool Schools Forum that the council receives around “100 applications a month for EHCPs” and the additional 150 expected would “cost a significant amount” moving forward.
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The finance officer said should this follow trajectory, schools would be “overspending by a significant amount by the end of 2023/24” which raised ”considerable concerns.” Mr Byrne said it would leave schools in a “very difficult position”.
A report to the council’s cabinet earlier this year revealed more than 4,000 children in Liverpool are on an EHCP, representing an increase of 46% since 2019. Jonathan Jones, director of education, told the assembled headteachers this afternoon that by comparison nationally, Liverpool has a lower percentage of children with EHCPs.
As part of its efforts to reduce funding pressures on the high needs block from the Direct Schools Grant it receives from government, the local authority has already proposed moving three of the city’s special schools to new locations. A consultation was launched earlier this year on the potential for Bank View School on Long Lane to relocate 14 miles away to Parklands in Speke, while Princes School on Selborne Street could be moved to Redbridge School on Long Lane, while Redbridge would move into Bank View as they occupy the same site.
The findings of the public engagement exercise are expected to be discussed by the end of the year, later than expected. Overall, Liverpool Council and city schools are expected to need to manage increased cost pressures in education “with only a small increase in funding” from the Department of Education, despite indications of further support in the Autumn 2021 spending review.
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