A fresh look by education chiefs into budget savings and cuts agreed earlier this year could spark a U-turn on a proposal to close a Pupil Referral Unit (PRU) in the county.

The contents of their review which sees “strategic and financial changes” will be shared with the Finance Panel soon.

It also follows external reviews of the units including an inspection report by Wales’s education watchdog, Estyn which said they required “significant improvement.”

These original proposals to close a unit in Powys to save £600,000 over two years were part of this year’s budget, which was agreed last February.

Remodelling the PRUs, which are based in Brecon and Newtown, is estimated to save the council £325,555 this year and £251,285 next year.

At a meeting of Powys County Council’s Cabinet on Tuesday July 30 senior councillors received a report on the progress of the 2024/2025 budget following the first quarter of the year which finished at the end of June.

In the body of the report are details of inter council budget money transfers called virements that needed to be agreed by cabinet members.

One of the transfers is £120,000 intended for the PRUs.

The question on whether the idea of closing one of the units had been scrapped was first raised at a Finance Panel meeting earlier this month.

There the quarterly report was scrutinised ahead of the Cabinet meeting and where councillors first saw details of this virement.

At the Panel meeting director of corporate services Jane Thomas told councillors that that a new head of (education) service had conducted a review of budget position “starting from scratch.”

Ms Thomas said: “There has been some concern about the proposed changes, and budgets are being realigned as part of that review.”

She added that senior staff from the education department would be asked to “highlight further changes in that area” to the panel.

Conservative Cllr Peter Lewington said: “A big reason behind my question on the change of mind on the PRUs is the impact this delay continues to have on the staff working at the PRUs and the uncertainty around their futures.”

The PRUs were brought up at the Cabinet meeting as part of the discussion around quarterly budget position.

Conservative group leader and Finance Panel chairman Cllr Aled Davies said that it was “worrying” to see in the early part of the year that £1.7 million of expected savings for the year was effectively already written off which included the savings around the PRUs.

Cllr Davies said: “Taking the example of the PRUs.

“There was clear and strong challenge in scrutiny, and we were given reassurance after reassurance that this saving would be deliverable.

“And within a few weeks money is being vired into that service.

“It does not set a good precedent for the rest of the year.”

Director of education Richard Jones said: “Our duty is to provide the overall strategic direction while allowing for headteachers and school leaders to make sure the curriculum offer in those schools and the wellbeing support, ensures all those children and young people can thrive.

“That virement can be accounted for, because we have recently commissioned an external review into our PRU provision and have received detailed feedback from a recent inspection.

“It would be remiss of us not to act on those external views in terms of our strategic thinking.”

Dr Jones confirmed a briefing would be given to the Finance Pane on the changes.

The report explains that of the £12.9 million in cuts and savings need to be made this year and that £2.5million has been “delivered” by the end of June.

Council chiefs give assurances that a further £8.7 million will be delivered by the end of March 2025.

But this leaves £1.7 million which are at risk of not being found.

Finance portfolio holder, Labour’s Cllr David Thomas said: “It’s just as well we have some flexibility in our budgets that we can remedy some of these things that might for whatever reason appear unachievable.”

Cabinet noted the report and agreed the virements.

PRUs are small specialist schools that deal with children who need greater support than mainstream schools can provide.

Pupils attend PRUs for a range of reasons including exclusion from mainstream school due to behavioural issues, mental health issues and illness.