Agenda item

Officers presented the budget and spending report.

Members focused on savings proposals, what they meant in practise, and the likelihood of them being achieved this financial year.

Officers clarified that making savings did not necessarily mean overspending. Last year's data indicated that Hillingdon had the second lowest-cost children's services in London, with very good regulatory outcomes. The focus on prevention had been a key factor in maintaining low costs while delivering necessary services.

Placement costs were a big pressure, particularly for looked after children. The market for residential care was expensive, the most expensive placement offered to Hillingdon was £28,000 per week. The high costs did not always correlate with better outcomes, highlighting the need for more cost-effective solutions. When young people had to be placed away from Hillingdon, the wraparound care element could be lost.

Officers explained that the savings proposals were not new ideas but part of ongoing efforts to address identified pressures. The savings were linked to the care offer, fostering transformation, and the residential beds programme. The goal was to lower costs while improving outcomes for children.

Six new units had been completed in Charville, with plans to open them by autumn after the estate registration process. Staffing and recruitment were key risks, but experienced managers and deputy managers were being prepared to ensure smooth operations.

The focus was on using residential care as an intervention rather than a permanent solution. Trauma informed training for foster carers and residential workers was being enhanced to support children locally and prepare them for foster placements or returning to their families.

Officers discussed the joint efforts in recommissioning supported accommodation and working with housing colleagues to address homelessness pressures. The aim was to ensure proper pathways for young people transitioning to independence. It was reiterated that all Members were corporate parents to Hillingdon’s young people. A recent acquisition guaranteed 19 places for young people. Officers had looked at the entrants into care at different levels over recent years to predict the numbers over the next five years and also met with practitioners in different parts of the system. Officers were working with procurement on a new tender process for new contracts for providers. When talking about children’s care it was important that all parts worked together. The aim was to ensure that young people were ready for independence by the age of 18, and if not, other routes such as Staying Close were available. All strategies for housing included young people and vice versa. Staying Close can accommodate up to 45 young people. Officers were also exploring rent guarantor schemes and Council Tax exemptions.

The social care delivery model aimed to reduce repeat removals of babies and improve outcomes for families. The restructuring included efforts to manage agency costs and convert agency staff to permanent contracts.

Officers highlighted the efforts to reduce agency costs, particularly for educational psychologists, social workers, and SEND officers. The goal was to offer competitive permanent pay and conditions to retain staff. This saving had been delivered. It was noted that recruitment and retention can be difficult. There was a disparity between agency costs and permanent costs.

Savings had been achieved through the work of keeping families together and supporting special guardianship orders. This saving had been delivered.

Reducing repeat pregnancies this was likely the biggest risk but there was enough knowledge and understanding of this. Last year there were eight repeat pregnancies and this would be monitored.

Officers explained that the savings in post-16 transport were linked to promoting independent travel and using personal budgets. This approach supported preparation for adulthood while managing costs. Members asked how the savings would be made. This involved providing young people with financial assistance rather than paying large contracts. This would enable independent travel and preparation for adulthood.

Members asked if any of the £5.2 million savings were looking vulnerable. There was currently no vulnerability, but this would be monitored. There was no cutting or stopping services, but there would be transformation. It was important not to do things at the risk of outcomes for young people.

Officers noted that they were awaiting a response from the DfE regarding the DSG. Officers were hoping for feedback shortly which would hopefully mean the release of £7.5 million funds from the DfE towards the cumulative deficit.

Members asked about tracking outcomes against financial investment and ensuring alignment with our corporate priorities. There were a range of KPIs as well as clear qualitative measures. Hillingdon had the lowest rate of care proceedings in the country. There were good gatekeeping processes in place to look at cost, benefit and expected outcomes.

The Committee agreed on the importance of regular updates and the involvement of senior team members in future meetings.

RESOLVED: That the Committee noted the report, and agreed the proposed approach to financial monitoring at this Select Committee as set out in this report