Children's Services department out of the red

ROTHERHAM’S troubled kids’ services department has taken another step towards recovery—by balancing the books 12 months after facing a £4 million funding black hole.

The department finally shrugged off a Government-imposed notice to improve last month following a damning 2009 Ofsted report which flagged the possibility of a Baby P-like tragedy in the borough.

Extra cash was given to the Children and Young People’s Services section in November 2010, when Rotherham Borough Council tore up its original budget amid greater financial pressures.

Social work and caring for looked-after children remains in the red, with a £900,000 total overspend forecast by the end of next month.

But this has been off-set by the redistribution of £500,000 grants, plus additional income from school buy-back services, delegated services and below-budget pension costs.

Children’s services finance manager Joanne Robertson said strict budget management remained a high priority.

She added that the main risks of overspending related to the budget for looked after children, which was dependent on the needs of different youngsters.

Ms Robertson added: “The recruitment of in house foster and adoptive carers remains a challenge and we must always ensure a high quality of placements.

“Our decisions to place children with independent fostering agencies and in residential out-of-authority establishments will always be in the context of the best interests of our children.

“The budget need can only be an estimate, given its volatile nature.

“For example, one out of authority residential placement for a child with very complex needs can cost up to £250,000 per annum.

“Legal costs will also remain at a high level. If children assessed as being in need of protective care are not made subject to care orders, the local authority is leaving children potentially at risk of significant harm.”

There are 24 children in care placements outside Rotherham—ten more than were budgeted for last March.

The extra cost is expected to be £2.5 million, most of which was addressed by the in-year budget changes made by Cabinet in November.

The council also expects to have overspent by about £240,000 on social worker staffing costs by the end of 2010/11.

A £3,000 “golden hello” was offered to boost a recruitment drive but temporary agency staff plugged the gaps at up to twice the cost of regular staff.

The total budget was increased by £5 million to £45.5 million when Rotherham Borough Council re-drew its 2010/11 budget.

Council leader Roger Stone said the notice to improve had been a “real wake-up call” when the Government praised the progress made to date in January.