Agenda item

A report and presentation was provided to the Committee which provided an update on the financial and operational strategy of the Doncaster Children’s Services Trust, following the presentation provided on the 15th February 2017.  Updates provided as part of the discussion included: –

•      Financial Strategy - Members were informed about a move towards a financial strategy and discussions taking place about what the future will look like.  It was explained that part of the plan was to grow a model that will be able to generate new income streams.  It was outlined that an Interim Director of Finance was in place to put together a future operating model which would also be sustainable. Members expressed their concern that there had been no permanent Finance Director in place for an organisation with such a large budget and number of staff.  Members were assured that it was the Trust’s intentions to have a full-time Finance Director in place in the future.  Members were informed how a significant amount of work was being undertaken to reduce demand, expenditure and costs whilst improving efficiency.  

Members were reminded that there was never a plan for the Trust to achieve more than a breakeven position.  It was outlined that the Trust will need to negotiate a new contract or otherwise be assisted with issues such as capital to become more independent.

In respect of the finance coming direct through the government, it was explained that this was not a current option but maybe a future one. It was explained that the Trust was not in a position to do that but it was recognised as an interesting concept.

•      Out of Area Placements – In terms of cost pressures, it was recognised that out of area placements continued to be the single biggest challenge and reported that there were 34 out of area placements as at the end of March 2018 (with single placements costing in the region of £250,000 per annum).  It was recognised that a great deal of work needed to be undertaken to look at the needs of those 34 children and plans to bring them back.

A Member raised concerns over out of area placements and asked whether the Trust could ever reach zero number of placements and whether there would ever be enough services to achieve this.  It was responded that a zero target would be too difficult to reach as some children could not simply remain in Doncaster due to personal circumstances.  Also, that other children with complex needs would sometimes have to be placed outside of Doncaster in order to receive the right kind of support.  It was noted that there was an expectation to reduce the numbers associated with the low to mid-teen age category.

Members were later informed that the strategy on the remodelled home resource in Doncaster had taken longer than expected with Amersall still not being open and therefore Ofsted was taking longer.  It was noted that some children with particular needs can’t be met locally and that the rate of placement had reduced significantly.  Concern was shared that overspend was still relatively high and that the strategy should help to manage expenditure in Year 4 children to come to Amersall Road and save around £750,000 to £1 million. 

•      Independent Fostering Agencies – It was explained that there were variances in respect of Independent Fostering Agencies that needed to be taken in to account and managed appropriately.

•      Funding Streams – Members were informed that work around utilising potential funding streams from health and education channels was ongoing.

•      Early Assessments – Concern was raised about the delay in providing early help support for children and their families, sometimes running into several months. Members were informed that this delay was there when this function had previously been under the DMBC and had been inherited by the Trust.  It was explained that following the transfer, there had been large waiting lists with some cases delayed for up to several months.  It was continued that additional resources had been put in place with an aim to clear the back-log by mid-August 2017 and that staff transferred were now receiving the training they needed.

Members were informed that a lot of work needed to be undertaken with partners to ensure there was a robust early help offer.  It was acknowledged that the Trust was responsible for targeted support and that demand was always likely to outstrip resources.  It was noted that if the Early Help offer was right, then there was going to be less of a demand on statutory services.  The Trust had not seen a reduction, partly as it hadn’t worked as well as it should have, however, work was ongoing to improve this.

•    Transition/18+ - A Member enquired whether there had been any thought to using the third and independent living sector for those young people who are over 16.  Members were informed that there was a range of provision for some in-house support and lodging to help young adults transition to become more independent.  The Trust stated that it could offer the same quality of support at around two thirds of the cost which was currently around £850 - £900 per week.  It was explained that the profile was slightly different but work historically had not progressed.  Regarding the 18+ service, it was explained that best practice would suggest that these children should be picked up much earlier (around 15 ¾) and changes were being made to implement this approach.

It was advised that the spike in age profile meant that there were currently young people with challenging behaviour.  It was commented that quality of care has been so poor in the past that those children had additional problems which meant more investment and resources were required e.g. therapeutic care.

•      Staffing Issues - In respect of recruitment, Members were informed that new consultation around staff terms and conditions would commence this summer.  This would look at whether the original proposals accepted by Council staff should be considered or rejected (the result of which may impact on funding). It was recognised that neighbouring authorities such as Rotherham and Barnsley pay their staff more than Doncaster. The Trust reported that it was managing its recruitment offer differently in Doncaster.

Secondly, concern was raised around an increase on physical violence on staff within Doncaster schools and academies.  Members were informed that work was being undertaken closely with schools and partners that deliver low level mental health and that schools received support.

•      Residential Homes – Clarity was sought as to why Tickhill Square home had reported an utilisation rate of 120%.  It was explained that this home had been operating at full capacity and at short notice needed to take in an additional young person for a short period of time.  It was explained that the accommodation was modified accordingly to enable this to happen for a short period of time.

It was requested that an updated report from the Trust alongside the Council’s own action plan to be brought back to a future OSMC meeting

RESOLVED that the Committee notes the financial and operational strategy update of the Doncaster Children’s Services Trust.