The key areas causing the overspend included a projected overspend of £9m in the Children and Families service.
Care placements and staffing costs were identified as the main pressures.
The committee asked questions and made comments in respect of:
- Although the first set of figures for quarter 2 were still being finalised, they did not present a positive outlook. Concerns were raised about Quarter 2 budget figures for Children and Families noting they remained pessimistic and did this reflect the upper limit of financial pressure?
- There were discrepancies in capital programme figures, and a request was made for clarification on budget increases.
- There was repeated overspending in children and families, particularly in transport and staffing, therefore was the budget realistic when set.
- Concerns raised about adoption and Special Guardianship Orders, legal support, and ethical recruitment of social workers.
- Children’s welfare should not be compromised for financial reasons.
- statutory targets set by the government contributed to budget pressures.
In response, officers reported that:-
- Work was ongoing on Financial Report 2 (FR2) and figures would be reviewed with colleagues.
- Information on the capital programme figures would be checked outside of the meeting.
- There were three main reasons for overspending in Children and Families: Rising demand, staffing pressures and budget limitations and work was ongoing in those areas as part of the Transformation Programme
Under the title ‘Right Child, Right Home’ and overall mitigations planned to manage pressures included managing vacancies, particularly agency usage, reviewing costs of placements, establishment reviews, Reunification of children, and Work on Edge of Care Service proposals to identify early intervention and cost reduction.
It was reported that by the end of the month there would be ten agency Socialworkers converting to permanent posts and there would be another cohort of ten international social workers being brought forward in January 2026.
There would be a focus on sustainability which included work on the 3 Year Workforce Strategy which included plans for a Cheshire East Social Work Academy, building capacity and resilience internally.
A Task and Finish Group had been set up following June Committee to look at the work of the Home to School Transport service and transport costs. An update report was requested to be added to the work programme.
The introduction of the Families First Programme would provide early intervention support to address emerging needs within families, thereby reducing the likelihood of escalation to specialist services within Children’s Services. This preventative approach would contribute to improved outcomes for children and families whilst also delivering cost efficiencies.
RESOLVED: (By Majority)
That the Children and Families Committee
1. Review the factors leading to a forecast adverse Net Revenue financial pressure of £3.1m against a revised budget of £440.5m (0.7%). To scrutinise the contents of Annex 1, Section 2 and review progress on the delivery of the MTFS approved budget policy change items, the RAG ratings and latest forecasts, and to understand the actions to be taken to address any adverse variances from the approved budget.
2. Review the in-year forecast capital spending of £205.5m against an increased capital budget of £208.5m. This was adjusted at outturn following an approved MTFS budget of £173m.
3. Approve the Supplementary Revenue Estimate Requests for Allocation of Additional Grant Funding over £500,000 and up to £1,000,000 as per Annex 1, Section 3, Table 2.
4. Note the available reserves position as per Annex 1, Section 5.
The committee adjourned for a short break.