Proposed decision:
To reduce the value of the core contract with The Education People in 2023/24 by £0.4m through changes to the service specification.
Reason for the decision:
As part of KCC’s budget setting process discussions have taken place with TEP’s leadership to assess areas of efficiency. Proposals for £0.4m of savings in 2023-24 have been received. In summary these include:
|
Reduction in contract fee for financial year 2023/24 - Description |
Value |
|
Early Years and Childcare Service |
- £128,825 |
|
Equality Diversity Inclusion Team |
- £45,500 |
|
Governor Services |
- £6,585 |
|
Primary School Improvement |
- £39,000 |
|
School Financial Services |
- £92,940 |
|
Secondary School Improvement, Special Schools and PRU's |
- £87,150 |
The contract between KCC and TEP is currently subject to formal review by the Education Service and TEP Teams, in line with the contract terms. This will ensure future service delivery reflects changes in the political and educational landscape, the needs of schools and the LA, and are delivered at a lower cost. It is expected that through the TEP contract review further savings of £900k (2024/25) and £300k (2025/26) will be achieved.
Options (other options considered but discarded):
The alternative to reducing the value of the TEP contract by £0.4m (3.6%) is to secure savings elsewhere in the Education Service budget. Delivery of the MTFP savings (£0.9m) requires action in addition to the proposals in this paper. The proposals represent a fair balance as to where savings are being made.
It is feasible to consider finding different savings from within the TEP contract to those included in the proposals. However, the proposals offer savings where circumstances have changed and activity is no longer necessary, areas where responsibility for funding these should rightly fall to the school receiving the service, and areas which are believed to add least value.
Decision type: Key
Decision status: Recommendations Approved
Division affected: (All Division);
Notice of proposed decision first published: 05/05/2023
Decision due: Not before 5th Jun 2023 by Cabinet Member for Education and Skills
Lead director: Christine McInnes
Department: Education & Young People's Services
Contact: David Adams, Assistant Director Education (South Kent) Email: david.adams@kent.gov.uk Tel: 01233 898559.
Consultees
The proposed decision will be considered by the Children’s, Young People and Education Committee on 16 May 2023.
Financial implications: The savings in the TEP contract form part of the delivery solution to the overarching MTFP savings required of the Education Service of £0.9m in 2023-24, and indicative savings of £1.2m and £0.3m in 2024-25 and 2025-26 respectively. The TEP contract is funded from both Council base budget and the Dedicated Schools Grant (DSG). The proposals set out in Table 1 (and in detail in appendix one) will save £0.4m in 2023-24 against the TEP contract (of which approximately £0.1m will relate to the DSG). In addition to this saving KCC, through its general discretion not to award an inflationary pay increase sum, will expect TEP to absorb inflation and wage pressures. Details of how the future years’ savings will be achieved have not yet been determined. Following the contract review process the proposed revised contract and service specifications for TEP will be reported to this Committee later this year.
Legal implications: The proposals above have been produced jointly by the company and Education Service, the contract commissioner, in line with contract requirements. There are no legal implications.
Equalities implications: The proposals do not relate to any activity which directly interfaces with members of the Kent community. In the main these remove from the contract requirements activity which is no longer necessary for either TEP or KCC to continue to deliver their responsibilities. The equalities impact assessment indicates there are no equalities implications arising from the proposed decision. The EqIA will be revisited again as part of the formal review of the contract which is currently in process. Data Protection implications: The proposed decision does not create any data protection implications.