High energy prices adding to school finance challenges

Two fifths of English schools say pupils’ education is suffering as high energy prices are having an impact on already strained budgets according to a survey by Commercial Services Group (CSG).
 
More than half (56%) of secondary schools or Multi-Academy Trusts (MATs) in England report they are currently operating in a financial deficit lasting a year or more, and energy bills were cited by a fifth (21%) as one of the main areas where spend has had to be reduced to balance the books.
 
Although energy bills represent one part of a broader funding challenge schools face, their continued volatility is adding significant pressure on already stretched school budgets, yet just one in five (19%) of schools say they currently plan to seek external advice on reducing energy spend.
 
To help balance budgets, (17%) are considering combining class sizes or reducing extra-curricular activities to save money, while 15% are exploring cuts to subjects such as languages, arts, or music. One in six (17%) plan to turn heating off or down in classrooms, and 22% are switching lights off during the day to reduce costs.
 
Eamon Grimes, Managing Director, Energy & Carbon at LASER, added: “With wholesale prices still well above pre-2020 levels, it’s understandable that energy remains a concern for many schools. Even with high network prices, there are ways to reduce the financial burden and there is expert advice out there that can make a huge difference. While there’s no one-size-fits-all answer, we’ve seen a growing number of schools finding practical ways to reduce costs whether through flexible contracts, energy reduction measures, generating their own energy, or working together on procurement.
 
“Raising awareness of these options and making it easier to navigate them is an important step in supporting schools through ongoing financial pressures.”
 
Matt Johnson, CEO of Commercial Services Group, said: “School leaders are juggling enormous challenges — from funding and staffing to pupil wellbeing and infrastructure. Energy costs are just one part of a much bigger picture. We need a more joined-up effort between government, energy providers, and education partners to raise awareness of the support that exists and help schools make informed, strategic decisions. By sharing what works and ensuring access to trusted advice is easier, we can relieve some of the pressure and help protect vital learning experiences for pupils.”
 
Strained budgets have had an impact on educational outcomes, according to 43% of school leaders, with 15.5% saying they’ve had a major impact. More than half (55%) of the 500 senior leaders and head teachers to respond to the survey by Commercial Services Group say pupil wellbeing has been affected by the need to meet energy bills, and 51% say staff wellbeing has been affected.
 
LASER, part of the public-sector owned Commercial Services Group, has supported schools with energy and energy-saving advice for more than 30 years and currently works with more than 5,000 schools to help minimise energy bills.
 
The survey also revealed that, while 31% of schools say they are aiming to use financial planning tools to help reduce their financial burden, nearly a quarter are considering cutting back on teaching resources such as stationery, computers, and science equipment.
 
Commercial Services Group is a public sector-owned organisation that reinvests every penny back into the communities it serves.