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STAG Policy Scrutiny Briefing • Evaluation Series
REF: NY-STAG-2026-SEPT
September 2026 Post-Implementation Review

EVALUATION OF THE SEPT 2026 NYC MODEL

A Critical Evaluation of the Change of Methodology in North Yorkshire Council’s Post-Implementation Review (September 2026): Analysing Model 3, Contract Inertia, Suppressed Friction Costs, and Out-of-County Educational Leakage.

TL;DR • Core Briefing Points
1. What Changed in the Methodology?

The Post-Implementation Review (PIR) represents a quiet, fundamental pivot away from the original July 2024 NYC model. Rather than conducting a true post-implementation audit—which would compare the 2024 assumptions against actual outturn—the Council abandoned the original methodology entirely and substituted a new construct ("Model 3").

A. Abandoning the July 2024 Behavioural Mechanics

Then (July 2024): The July 2024 model attempted to forecast cash savings by estimating cohort behaviour—specifically guessing that ~70% of parents stranded in the catchment gap would privately fund their own transport, with sensitivities run from 20% to 100%.

Now (September 2026 PIR, Section 6): The Council quietly discarded the 70% behavioural mechanism. It replaced it with a top-down, gross entitlement loss rate observed in Year 1 (a single bulk admissions round) and projected that forward across seven academic years.

B. The Introduction of the £2,078 Flat Pupil Cost

The New Formula: The PIR calculates savings by multiplying the projected net reduction in eligible pupils by an assumed average cost of £2,078 per pupil per year (Section 6.8).

How £2,078 Was Derived (Sections 6.1–6.3): Officers took daily contract costs divided by occupied seats (not vehicle capacity) for June 2025 and May 2026, multiplied by 190 days, and adjusted for 3.4% CPI inflation.

The Truncation of Real Costs (Section 6.2): Officers explicitly excluded any journeys with a cost-per-seat above £50/day (~1.5% of pupils). They also excluded single-occupancy, discretionary, denominational, and mobility/SEN transport to prevent "disproportionately inflating the average cost". In doing so, they engineered a sanitized average that systematically excludes the very high-cost edge cases rural travel creates.
C. Formalising a Token Friction Line for Appeals

The PIR formally inserts an annual deduction line for appeals: 8 pupils per year, costed at £16,624 per year (£116,368 cumulative across 7 cohorts) (Section 6.9, Table).

2. What Was Subtly Omitted or Altered?
A. Model 1 Was Never Audited

The PIR does not answer the fundamental audit question: Was the Council's July 2024 model right or wrong? By simply drawing a line under it and introducing a new calculation, the Council avoided having to admit that the 2024 premise was flawed.

B. The Appeals Assumption vs. Empirical Fact

A glaring mathematical contradiction exists between the PIR's financial model and its own narrative evidence base:

PIR Financial Savings Table (p. 68, Section 6.9) PIR Empirical Evidence Base (p. 58, Section 5.3.2 & 5.4)
Projects that policy appeal costs will impact just 8 pupils per year county-wide (£16,624/yr). • In 2024/25, 44 Stage 2 appeals heard (11 upheld).
• In 2025/26, 56 Stage 2 appeals heard (10 upheld).
• Over 20 complaints referred to the Local Government Ombudsman, with 5 finding fault and injustice requiring rehearings.

When Stage 1 and Stage 2 determinations are combined, actual upheld appeals in Year 1 exceeded 40 cases. The financial model assumes an appeal friction rate that its own narrative data proves is understated by a factor of five.

C. The "Banked" Saving Sleight of Hand (Paid Travel Permits)

The PIR reports a year-one financial saving of £317,588 (Table 6.9). However:

The Contradiction: PTPs are spare seats on existing contracted vehicles. Generating £185k in permit income is new revenue extracted from parents, not reduced operational expenditure. More critically, if the Council eventually succeeds in rationalising contracts and shrinking buses down to smaller vehicles, the spare capacity vanishes, destroying the permit income. Treating temporary seat sales as a permanent structural saving is an accounting illusion.

D. The Physical Fleet Reality is Glanced Over

Section 4.13 of the PIR reveals that while eligible pupil numbers dropped, contracted services did not drop at the same rate. The Council acknowledges that de-eligibility has not translated directly into contract cancellations, yet the financial model still uses a linear £2,078 multiplier that pretends every pupil removed takes £2,078 of contract cash with them.

3. Persistent Gaps About Actual Operational Costs

The PIR does not present audited ledger outturn showing where baseline contract spend decreased. Instead, it constructs a theoretical cost model and treats its outputs as empirical savings:

A. The Zero-Contract Reality vs. The "Banked" Saving

Across the entire authority, the operational transport data (Section 4.13.3, Table, p. 43) reveals:

Operational Metric June 2025 May 2026 Net Operational Change
Mainstream Contracts in Operation 574 574 0 net contracts cut
Individual Services Operated 649 642 −7 services (−1.08%)

The physical transport network was essentially untouched. Across 649 individual services, only 7 were trimmed county-wide, proving that contract expenditure did not fall in line with pupil de-eligibility.

B. Truncation of Real Rural Transport Costs

By capping the average cost calculation at £50/day and excluding atypical routes (Section 6.2), the model deliberately deletes rural reality. When rural cohorts split, remote pupils stranded in isolated valleys require bespoke taxi contracts that frequently exceed £50/day. Excluding these high-cost runs artificially suppresses the true replacement cost of rural transport.

C. Negative Fleet Gearing (Single Occupancy Taxi Inflation)

The PIR's own case studies admit that route fragmentation has already forced additional high-cost vehicles onto the road. In Section 4.13 (p. 44), officers report:

“Meanwhile, there is one additional contract and service providing home to school travel arrangements for Year 7 pupils to Tadcaster Grammar in May 2026... These changes are a result of an additional single occupancy service being required.” North Yorkshire Council, Post-Implementation Review (Sept 2026), Section 4.13, p. 44

Splitting routes created an immediate requirement for an additional single-occupancy contract (a solo taxi). The Sept 2026 model contains zero financial contingency for the ongoing operational cost of these fragmented solo runs.

D. Total Absence of Audited Expenditure Outturn

Nowhere does the PIR show actual total budget outturn comparing 2024/25 spend to 2025/26 spend. Instead of verified ledger accounting:

Actual Spend 2024/25 − Actual Spend 2025/26 = Verified Cash Saved

They present a theoretical formula:

(De-registered Pupils × £2,078) − Token Deductions = “Banked Savings”
4. Out-of-County Educational and Financial Leakage

The PIR acknowledges that children travel out of county, but it treats this strictly as a statutory administrative formality while completely ignoring system-wide education finance.

A. What the PIR Records (Section 7.11, pp. 82–83)

The PIR tracks Reception and Year 7 pupils receiving NYC-funded travel to schools outside the county boundary:

Academic Year Educated Out-of-County Eligible for NYC Transport Eligible Proportion
2023/2434410731.1%
2024/2536311331.1%
2025/2639312331.3%
2026/2739413434.0%

Despite the eligible proportion rising to 34.0%, the Council's formal response is Recommendation R14: "Maintain the current policy with regards to considering schools outside North Yorkshire as the nearest suitable school".

B. The Omission of Dedicated Schools Grant (DSG) Capital Flight

School Funding Follows the Pupil: The PIR evaluates transport in a silo, ignoring the Dedicated Schools Grant (DSG). When a North Yorkshire child is nudged across the border (e.g., into Cumbria, Lancashire, Bradford, Leeds, or Darlington) because that is their statutory nearest school, their basic entitlement funding (roughly £5,000–£7,000+ per secondary pupil) leaves North Yorkshire entirely.

The Asymmetric Ledger: The PIR claims a theoretical transport saving of £2,078 by removing a child's free travel to their in-county catchment school. But if that family switches to their nearest school across the county border to retain free travel:
  • The Council must pay to transport the child out of the county anyway.
  • The local North Yorkshire school loses ~£6,000 in per-pupil basic entitlement funding.

Settle College governors warned Full Council of a £300,000 per year budget loss from children being diverted across the border to Kirkby Lonsdale. The PIR’s financial model takes no account of this cross-border capital flight, treating a minor or non-existent transport saving as a success while North Yorkshire rural schools absorb massive funding deficits.

5. Scrutiny of the 16 PIR Recommendations

The PIR identifies 16 operational pressure points (Section 7.1) and puts forward targeted patches. While these address administrative and PR embarrassment, they leave the structural policy and financial gaps untouched:

What They Attempted to Patch The Critical Gaps Left Wide Open
Mapping & Distance (R1–R3): Conceding that measuring unlit footpaths created absurdities; allowing discretion to measure drivable roads.

School Gates (R4–R5): Addressing disputes where routes measured to locked maintenance gates instead of pupil entrances.

Hazardous Routes (R6): Clarifying unsafe route wording.

Cross-Border Anomaly (R10): Acknowledging children stranded between in-county and out-of-county schools.
The Fundamental Catchment Gap: Refuses to restore catchment eligibility. Rural cohorts remain divided from feeder schools and siblings.

The Contract Realisation Gap: Zero net contracts eliminated in Year 1. No operational plan showing how contracts will be terminated to realise £3.7m.

The Appeals Reality Gap: Model assumes 8 appeals per year while panels handle 50+ contested cases annually.

DSG Funding Flight: Completely ignores per-pupil education cash drained into neighbouring local authorities.
6. Scrutiny Verdict

The PIR methodology is an exercise in retrofitting a new formula to protect the original £3.0m–£3.7m MTFS target.

Faced with the fact that the July 2024 model's route-costing assumptions were unprovable and that Year 1 contract reductions lagged behind pupil losses, officers discarded Model 1. They substituted a flat unit calculation (£2,078), excluded high-cost rural routes to keep the average tidy, claimed credit for £185k of spare-seat ticket sales to mask contract inertia, and capped appeal costs at an unrealistic 8 cases a year.

Summary

The council changed a transport policy with no transport input. When the original paper model proved unworkable, it produced a post-implementation review that quietly abandoned its own audit to retrofit an accounting abstraction.

Full Council approved this objectively bad policy decision underpinned by flawed evidence, aspirational assumptions, and zero contract savings. Remember: the council represents you, their constituents.

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