Councils left in limbo over plan for early intervention grant

The government is yet to decide on the sum of money allocated to the new early intervention grant for the coming financial year, sparking concern that councils will not set aside enough money for vital services.

The grant was announced in last week’s comprehensive spending review, but has received a mixed reaction after the government revealed the money will not be ringfenced.

It has been confirmed that the grant will be worth about £2bn by 2014/15, but its value for each of the next three years is not yet known.

It is also unclear what existing funding streams will make up the grant and whether its total value will equal the combined sum of those streams or represent a real-terms cut.

Hugh Thornberry, director of children’s services at Action for Children, said unless local authorities are informed soon, they may be forced to make hurried decisions on early intervention services, potentially sacrificing key elements in the absence of clear guidance on future funding.

“The in-year savings already made this year and the decisions councils have to take about next year will take away the infrastructure and fabric needed to deliver on early intervention,” he said. “The quicker we get clarity the better, as it will mean bad decisions can be avoided.”

Labour MP Graham Allen, who is chairing the government’s early intervention review, said the creation of a specific grant sets a “good precedent”, but stressed the importance of spending the money on early intervention.

“My definition of early intervention is about the social and emotional capability of babies, children and young people. We need to have fidelity to that concept,” he said.

A Department for Education spokesman said details of how the department’s programme funding will be allocated will be announced in the coming weeks.

“We will need to consider how funding can be used to best effect, in line with our priorities in relation to services for children, young people and their families,” he said. “This will allow local areas to fund activities and services that meet the needs of their young people. Funding will be used only on the most effective programmes that work.”

He said that funds for teenage pregnancy, substance and alcohol misuse, young people at risk of becoming Neet or committing anti-social behaviour will be rolled into the early intervention grant, with details to be announced in “due course”. Sure Start funding will also go into the grant.

The early intervention grant will be one of nine core grants for local authorities, reduced from more than 90.

The others relating to children and young people are a public health grant (from 2013/14), the dedicated schools grant and the preventing homelessness grant.

EARLY INTERVENTION

    * The government announced in the spending review that the number of separate core grants to local authorities will be reduced from more than 90 to “less than 10”
    * The remaining grants will include an early intervention grant that, according to the spending review document, will be “worth around £2bn by 2014/15”
    * The Department for Education has confirmed that the early intervention grant will be made up of funds formerly allocated for tackling issues such as teenage pregnancy, substance and alcohol misuse, young people at risk of becoming Neet or committing anti-social behaviour and Sure Start funding