Cabinet Member decisions

Proposed decision:

Approve the fee uplifts for Adult Social Care Providers for 2025/2026 and delegate authority to the Corporate Director Adult Social Care and Health to take relevant actions, including any changes to the percentage uprates, as necessary to implement the decision

Reason for the decision:  We uplift our fees in line with our contract terms and in order to fulfil our duty to ensure a reasonable supply of good quality care.

We are cognisant of the impact of changes announced in the budget on the increase in the National Living Wage (6.7%) and changes in employers National Insurance Contributions, which combined with the National Living Wage adds upwards of 9% to the costs of employment. The local government settlement does not take account of the impact of these cost increases on the adult social care provider sector. The additional £680m funding for social care does not come close to meeting the full impact of these changes.

The detail of the uplift proposals will be set out in the formal decision report , which cannot be finalised until after we have received the local government finance settlement which will not be received before 19 December 2024.

The County Council has met with providers to discuss the impact of these changes and has worked together with Kent Integrated Care Association to lobby the Government for proper funding.

Direct Payments will be handled separately depending on the purpose of the payment.

The decision supports Priority 4 of ‘Framing Kent’s Future’, to ensure the sufficiency of the market of social care in Kent and objective 2 of Securing Kent’s Future to set a sustainable budget and meet our Best Value duty.

Other Options Considered and Discarded

Apply differing standard percentage uplifts applied to specified framework contracts according to the services provided. We rejected this option given the funding envelope available and the need to try to sustain the wider market, not just those on our framework contracts.

Apply no uplifts across all services: this was discarded, because although we cannot meet providers’ expectations, we have to do what we can within our constrained resources to support providers with their challenges.

Apply standard percentage uplift across all service provisions: This was rejected because it would not recognise the differential impact between providers with differing fee levels.

The proposal will be based on allocating the available funds to try to maximise the benefit and secure stability in the care markets.

As Cabinet Member for Adult Social Care and Public Health, I:

a)       APPROVE the fee uplifts for Adult Social Care Providers for 2025/2026; and

b)       DELEGATE authority to the Corporate Director Adult Social Care and Health, to take relevant actions within the overall budget allocation, including any changes to the percentage rates, as necessary to implement the decision.

Proposed decision:

TheDeputy Leader and Cabinet Member for Finance, Corporate and Traded Services to agree to:

1.     authorise the granting of a Lease in excess of 20 years to UK Power Networks in order that a new electricity substation can be built within the grounds of the school, to serve the newly built development for operational educational requirements; and

2.     delegate authority to the Director of Infrastructure, in consultation with the Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services to take necessary actions, including but not limited to entering into relevant contracts or other legal agreements, as required to implement this. 

Reason for the Decision:

The granting of a Formal Lease in excess 20 years requires a Key Decision in accordance with the County Council’s Constitution (Property Management Protocol).

Background:

Due to considerable residential development in the locality, pupil roll numbers have increased. This has necessitated the expansion and relocation of Rosherville Church of England Primary School. Kent County Council is currently building a new school on land acquired under a Section 106 Agreement.

In order that an adequate electricity supply can be provided to the new facility, it is necessary for a new electricity substation to be provided on site by UK Power Networks.

The proposed new substation will serve the school only and no other properties.

For consistency with other leases granted on operational school sites to UK Power Networks and similar Statutory Undertakers, a lease of 99 years will need to be granted for the provision and operation of the new substation.

Options Considered :

No other options were considered as the new facility cannot be operated without adequate electricity supply. The substation is necessary to ensure the development can be completed and brought into use.

How the proposed decision supports the Framing Kent's Future - Our Council Strategy 2022-2026: The decision will enable the provision  and operation of a brand new School. This supports KCC's commitment to maintaining its strategic role in supporting schools in Kent to deliver accessible, high-quality education provision.

Infrastructure for communities will be improved by the new substation, using modern materials and technologies associated with prevailing substation design and construction and protected for long term use by the presence of a long lease.?

Environmental Step Change objectives will also be achieved, as the proposed lease will compel the operator to use sustainable materials and reduce any carbon emissions compared to the existing substation, which will help the County Council achieve its Net Zero targets.

How the proposed decision supports Securing Kent’s Future 2022 -2026: Securing Kents Future - Budget Recovery Strategy.pdf

The decision supports Securing Kents Future 2022/26 strategy budget recovery since the land on which the new school is being built has been provided under a s106 and so there will be no requirement for KCC to fund the land acquisition.

The Sub Station necessary to power the school will be supplied at no cost to KCC other than cost for the preparation of the leases etc.

As Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services, I  agree to:

1. authorise the granting of a lease in excess of 20 years to UK Power Networks (UKPN) in order that a new electricity substation can be built within the grounds of the school, to serve the newly built development for operational educational requirements; and

2. delegate authority to the Director of Infrastructure, in consultation with the Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services to take necessary actions, including but not limited to entering into relevant contracts or other legal agreements, as required to implement this.

Proposed Decision:

APPROVE the development of new place-based Infant Feeding Support Services that align with the Health and Care Partnership areas from January 2026 onwards.

APPROVE amendments to the current Health Visiting Service specification from January 2026, particularly the approach to the delivery of the mandated antenatal contact.

DELEGATE authority to the Director of Public Health, in consultation with the Cabinet Member for Adult Social Care and Public Health, to exercise relevant contract extensions and enter into relevant contracts or legal agreements; and

DELEGATE authority to the Director of Public Health, to take other necessary actions, including but not limited to allocating resources, expenditure, and entering into contracts and other legal agreements, as required to implement the decision.

Background

Local authorities are responsible for using the Public Health Grant funding to commission and deliver health visiting services as part of the 0-19 years National Healthy Child Programme (HCP).  Health Visiting and infant feeding services are commissioned as part of KCC’s statutory responsibilities, which includes five mandated contacts.

Reason for the decision

The Kent Health Visiting Service, which includes the Specialist Infant Feeding Service and the Family Partnership Programme, is currently delivered through a co-operation agreement between KCC and Kent Community Health NHS Foundation Trust (KCHFT), which ends on the 31 March 2026. A recommissioning exercise is therefore in progress to agree the approach beyond the contract term. The recommissioning is part of the Public Health Transformation Programme.

In February 2023, KCC became one of 75 upper-tier local authorities to receive Family Hub and Start for Life funding. The Family Hub model supports the delivery of a range of services for children, young people and families, including health visiting and infant feeding. In November 2023, a local implementation model was agreed to join up and enhance services delivered through Family Hubs in Kent, ensuring all parents and carers can access the support they need when they need it.

This proposal aligns with the Family Hub model and supports implementation of the recently approved strategy, ‘Nourishing our next generation’, Kent’s 5-year infant feeding strategy (2024-2029).

Options appraisal

There has been a thorough options appraisal process. A full business case has been developed to arrive at the proposed service model which is outlined below.

How the proposed decision supports KCC Strategy 

Framing Kent's Future - Our Council Strategy 2022-2026  

Priority 1: Levelling up Kent

To work with our partners to hardwire a preventative approach into improving the health of Kent’s population and narrowing health inequalities.

By investing in the early years, Children will receive the best start in life contributing to KCC’s priority of Levelling up Kent – improving health and reducing health inequalities.

Priority 4: New Models of Care and Support

To reshape our commissioning practice to ensure we build strategic partnerships with our providers, through earlier engagement, more consistent and proactive commissioning practice, and a stronger focus on co-designing services.

The re-commissioning of the Kent Health Visiting Service and the review process has involved engaging with stakeholders to develop the service model. The new service will embed a whole-family approach, tackling the underlying problems that might cause concern in a child’s family, such as domestic abuse, substance misuse and parental mental health

How the proposed decision supports Securing Kent’s Future 2022 -2026: Securing Kents Future - Budget Recovery Strategy.pdf

Securing Kent’s Future 2022 -2026: Securing Kents Future - Budget Recovery Strategy.pdf 

The proposed changes to the Kent Health Visiting service support KCC’s duty for best value requirements.

Nourishing our next generation, Kent’s 5-year infant feeding strategy (2024-2029)

Financial Implications

The funding for contracts would be funded from the Public Health Grant and, should DFE confirm additional Start for Life grant funding beyond March 2025 for infant feeding, this would be used for additional activity within the contracts.

Contract values will be finalised follow a Provider Selection Regime compliant procurement process, including supplier negotiations, as applicable.

Contract values will be within the following maximum budgets available for these services;

·         up to £142,519,893 for a 5 year and 6-month contract for Health Visiting Service (including Specialist Infant Feeding Service and Family Partnership Programme (This includes an estimated uplift that will be applied to the contract subject to the allocation of the public health grant.)

·         up to £2,682,109 for a 3-year contract with a 2-year extension for a place-based infant feeding service.

The above values include an estimated uplift that will be applied to the contract subject to the allocation of the public health grant (with the exclusion of the first year). The uplift reflects the need to retain the workforce.

As Cabinet Member for Adult Social Care and Public Health, I agree to:

I.               APPROVE the development of a new place-based Infant Feeding Support Services that align with the Health and Care Partnership areas from January 2026 onwards.

II.             APPROVE amendments to the current Health Visiting Service specification from January 2026, particularly the approach to the delivery of the mandated antenatal contact and the required expenditure, via the Public Health Grant, for these amendments;

III.            DELEGATE authority to the Director of Public Health, in consultation with the Cabinet Member for Adult Social Care and Public Health, to exercise relevant contract extensions and enter into relevant contracts or legal agreements; and

IV.           DELEGATE authority to the Director of Public Health, to take other necessary actions, including but not limited to allocating resources, expenditure, and entering into contracts and other legal agreements, as required to implement the decision.

Proposed Decision:

To approve changes to the Kent County Council local funding formula for schools and early years providers that is used to calculate school budgets and early years rates from 1 April 2025. 

To approve the percentage uplift to Special Educational Need payments made by the Local Authority to State-Funded Schools and Post 16 providers (FE Colleges & Specialist Post 16 Providers) from 1 April 2025.

Delegate authority to the Corporate Director of Children, Young People and Education to make any necessary changes to the Local Funding Formula rates once final affordability is known.

Delegate authority to the Corporate Director of Children, Young People and Education, in consultation with the Cabinet Member for Education and Skills, to agree the distribution method for new school specific education grants during 2025-26 provided by the Department of Education, in line with grant conditions.  

Reason for the decision:

• In response to the Government confirming the additional funding for schools, Kent County Council is set to receive approximately £35m (2.6%) in 2025-26 to increases funding rates for primary and secondary school budgets. The Government has also indicated a further £21.5m (7%) for High Needs in 2025-26. Funding for the Early Years Free Entitlement has also been announced with funding from Government due to increase between 2.7% and 4.3% (dependent on age range). This decision will confirm how this additional funding will be distributed to schools and early years in line with Government guidelines. In addition, during the year, the Department of Education can sometimes announce additional grants that must be paid directly to schools (for example: contributions towards teachers’ pay award, pension increases or national insurance changes) to ensure these grants are paid to schools in a timely manner, the proposal extends the delegation to distribute these specific grants during the year.
• The final budget approach will be confirmed at the point the decision is taken.

Background:

• The Government has confirmed the Council continues to be responsible for operating a local funding formula for Kent maintained schools (and this formula is also used by the Education and Skills Funding Agency for calculating Kent academy budgets) during 2025-26 and legislation dictates that any changes to that formula is subject to an all school consultation which took place in December 2024 along with seeking views from the Schools Funding Forum. The consultation focuses on how we allocate any additional funding and a request to continue to transfer 1.2% from the schools to the high needs block to support SEN Support services in schools (the latter is also subject to Secretary of State approval).

·      The Council is responsible for setting the funding formula rates for High Needs funded school places including mainstream top-up funding, specialist resource provisions, maintained and academy special schools, post 16 providers. Proposals for the future SEN funding model for state-funded schools is being considered separately. These proposals are limited to the recommended percentage uplift to be applied to existing formulas for 2025-26.

·       The Council is also responsible for setting the Early Years Local Funding Formula which is used for setting the rates paid to early years providers for the Free Entitlement offer for children aged between 9 months and 4 years attending nurseries or childminders, for up to 30 hours of free childcare a week (dependent on eligibility).

Options (other options considered but discarded):

School Budgets: The options considered for setting the primary and secondary school budgets are outlined in the consultation document to schools and the preferred option will be set out at the point of decision. However, the option to deviate excessively from the National Funding Formula (NFF) used by Government to allocate school funding to local authorities for distribution to primary and secondary schools was discarded at an earlier stage.This is in line with previous recommendations from both schools & the Schools Funding Forum who have supported the general principle that “our Local Funding Formula should move towards the NFF, but at the same time continue to utilise local flexibility to address areas of local concern”.

• SEN Payments for state-funded schools and post 16 providers (Colleges & Specialist Post 16 Providers): Wider proposals for changes to the Special Education Needs Funding Model for state-funded schools were discarded at an early stage as proposed changes are being considered separately to this decision.  Therefore this decision is being limited to whether to apply a percentage uplift to SEN payments for state-funded schools and post 16 providers (Colleges & Specialist Post 16 Providers) in 2025-26.

• Early Years Payments: The option to change the basis of the  funding rates were discarded at an early stage with the decision being limited to whether to apply a percentage uplift to current rates.

Last year the Government announced a range of measures to support early education and help for parents with childcare so they can return to work more easily. This resulted in a number of changes to the sector including an expansion of the free entitlement offer from a universal/targeted offer for 3 & 4 year olds (& some eligible 2 year olds) to include free childcare up to 30 hours to working parents with children aged over 9 months. The Council implemented a number of new rates in response to this change and reviewed the current 3 & 4 year old formula relating to deprivation. Therefore, options to change the basis of the funding rates further were discarded, to provide stability to the sector, instead opting to consider a standard percentage uplift in line with Government funding announcements. 

Links to Framing Kents Future and Securing Kent’s Future:

·      The decision is linked to the key priority “Levelling up Kent” within the ‘Framing Kent’s Future (2022-26)’

·      Whilst the decision relates to the distribution of ring-fenced grant, this decision is linked to achieving the overall objectives of ‘Securing Kent’s Future – Budget Recovery Strategy’ whereby proposals will support the financial recovery of the High Needs Block of the Dedicated Schools Grant. 

As Cabinet Member for Education and Skills,  I agree to:

·       approve changes to the Kent County Council local funding formula for schools and early years providers that is used to calculate school budgets and early years rates from 1 April 2025 as set out below:

1. Transfer 1.2% of the Schools Block (equates to approximately £16.5m) into the High Needs Block for 2025-25

2. In relation to the Kent Local Funding Formula for primary & secondary schools in 2025-26:

i.               Set the local Minimum Funding Guarantee (MFG) percentage at 0.0% for primary & secondary schools

ii.              Increase the following factor values as set out in the table below to reflect the incorporation of grants (which were previously received separately) including the full year effect of the Core Schools Budget Grant:

*Teachers Pay Grant; Teachers Pension Employers Contribution Grant; Core Schools Budget Grant

iii.             Set the Minimum Per Pupil Funding Level (MPPFL) as per the values in the table below. This is equivalent to 99.1% of the National Funding Formula Rate

iv.            All other factors within the current local funding formula to increase by approximately 0.2% (after grant funding has been added).

3. In relation to the Kent Early Years Local Funding Formula for 2025-26:

i.               the base rates for the Free Entitlement offer will be set as per the values in the table below:

ii.              Increase the 3- and 4-year olds quality supplement by £0.14 per hour to £1.34 per hour for settings with a nominated leader with a qualified teacher status and employed on & paid under the Statutory Teachers’ Terms & Conditions.

iii.             reduce the proportion of the Early Years Block retained by the Council to fund services for early years from a maximum of 5% to 4% in line with government guidance (total estimated budget of £9.3m)

iv.            Remove the contingency for variations in demand for payments for children over 9 months and under 2 years.

v.              Early Years Pupil Premium and Disability Access Fund to be set in line with nationally prescribed rates.

4. approve a minimum 1% inflationary uplift to Special Educational Need payments made by the Local Authority to State-Funded Schools (SEN Inclusion Fund, Specialist Resource Provisions, Special Schools, Alternative Provision) and Post 16 providers (FE Colleges & Specialist Post 16 Providers) from 1 April 2025.

·       Delegate authority to the Corporate Director of Children, Young People and Education, in consultation with the Cabinet Member for Education, to make any necessary changes to the Local Funding Formula rates once final affordability is known and the outcome of Secretary of State approval.

·       Delegate authority to the Corporate Director of Children, Young People and Education, in consultation with the Cabinet Member for Education and Skills, to agree the distribution method for school specific education grants during 2025-26 provided by the Department of Education, in line with grant conditions.