{"id":247499,"date":"2026-06-11T23:00:11","date_gmt":"2026-06-11T22:00:11","guid":{"rendered":"https:\/\/schoolsweek.co.uk\/?p=247499"},"modified":"2026-06-12T20:48:05","modified_gmt":"2026-06-12T19:48:05","slug":"more-cuts-coming-as-energy-bills-soar-leaders-warn","status":"publish","type":"post","link":"https:\/\/schoolsweek.co.uk\/more-cuts-coming-as-energy-bills-soar-leaders-warn\/","title":{"rendered":"More cuts coming as energy bills soar, leaders warn"},"content":{"rendered":"

School leaders are warning of more cuts if ministers do not provide urgent help to cover surging energy bills caused by Donald Trump\u2019s war with Iran.<\/p>\n

The calls came after a deficit-ridden academy trust was issued with a government notice to improve as it struggled to reduce gas and electricity costs.<\/p>\n

And, with the US president vowing to continue air strikes in the Middle East, Julia Harnden, of the ASCL leaders\u2019 union, warned energy bill rises could leave schools \u201cpaying the price\u201d for years.<\/p>\n

\u201cWith this in mind, we would hope that the government is considering what financial support for the sector might be necessary,\u201d she continued.<\/p>\n

\u201cOtherwise, it will be very difficult for schools and colleges to absorb these extra cost pressures without having to look at making cuts to provision.\u201d<\/p>\n

Market volatility<\/strong><\/h2>\n

Schools Week<\/em>\u00a0analysis of the latest government data also suggests school energy costs spiked in 2023-24, with 2.3 per cent of income used to cover bills.<\/p>\n

The figure slipped to 1.7 per cent last year but stayed above levels seen prior to Russia\u2019s 2022 invasion of Ukraine.<\/p>\n

Average gas and electricty prices in 2026 have so far been about 11 per cent higher than those seen two years ago.<\/p>\n

And London Stock Exchange figures suggest gas and electricity prices are on track to reach their highest levels on average since 2023 by the end of this year.<\/p>\n

Months after the Ukraine war began, the then-Conservative government unveiled its energy price guarantee scheme, which provided discounted wholesale gas and electricity for all non-domestic customers.<\/p>\n

This included schools, amid \u201capocalyptic\u201d hikes<\/a> of up to 587 per cent.<\/p>\n

Chris Felgate, executive director at Ginger Energy, said schools were \u201cfacing renewed financial pressure as energy costs rise\u201d following the outbreak of the Iran war.<\/p>\n

He cautioned that those renewing contracts now \u201cmay face higher prices than those available before the escalation\u201d, having witnessed rises of up to 18 per cent.<\/p>\n

Harnden said schools were \u201cvery susceptible\u201d to these pressures.<\/p>\n

\u201cMarket volatility and high prices do not just impact on energy contracts but also affect transport costs and food supply chains which can put further pressure on school budgets,\u201d she added.<\/p>\n

School\u2019s energy woes<\/strong><\/h2>\n

Last week, the Department for Education (DfE) published a notice to improve<\/a> which it issued to the Sacred Heart of Mary Girls\u2019 School in Upminster, east London, over the trust\u2019s \u201cweak financial position and financial management, governance and oversight\u201d.<\/p>\n

Officials accused it of failing to prepare and monitor financial plans \u201cthat ensure the trust remains a going concern\u201d, among other things. They said it had not taken \u201ctimely action to maintain financial viability and address budget variances\u201d.<\/p>\n

Accounts show the school racked up a \u00a3541,000 deficit by the end of 2024-25, despite it being \u201cmajorly oversubscribed\u201d, with \u201cover 400 [applications] for 120 places\u201d.<\/p>\n

One of the reasons given for the financial issues was the school\u2019s inability to generate the \u201csignificant savings\u201d it had hoped to achieve on gas and electricity.<\/p>\n

It registered just \u00a336,000 in savings, \u201cmainly due to heating being switched off after 1pm each day\u201d. The DfE suggested finding \u201calternate suppliers for key contracts such as energy\u201d.<\/p>\n

\u2018Double squeeze\u2019<\/strong><\/p>\n

Felgate argued that schools were being hit by a \u201cdouble squeeze\u201d on energy bills as the cost of transporting energy, government policy changes and supplier charges \u2013 all of which are passed on to customers \u2013 have also risen.<\/p>\n

\u201cThese charges mean that even schools cutting consumption can still face higher bills,\u201d he explained.<\/p>\n

\u201cFor leaders already managing tight budgets, the result is simple: more money spent keeping buildings open, and less money available for pupils.\u201d<\/p>\n

Alex Green, the head of the Let\u2019s Go Zero campaign, noted many leaders were responding to the issue by reducing energy use across their estates and investing in renewables, moves that provided \u201cgreater security and resilience\u201d.<\/p>\n

\u201cWith around 50 per cent of energy typically used when buildings are unoccupied,\u00a0 during evenings, weekends and holidays, it is clear that significant savings can be made,\u201d she said.<\/p>\n

\u201cThrough low or no-cost measures, often focused on behaviour change, schools can reduce energy consumption and redirect those savings straight back into supporting students\u2019 education.\u201d<\/p>\n

Vivienne Qurrey, headteacher at Sacred Heart of Mary, stressed that the academy was \u201cone of many schools who are facing significant financial constraints and challenges currently\u201d.<\/p>\n

It had a \u201crobust\u201d plan in place and is working with trustees and the DfE \u201cto ensure the school will continue to be a going concern and thrive long into the future\u201d.<\/p>\n

\u00a380k saved<\/strong><\/h2>\n

Education secretary Bridget Phillipson this week described energy as one of schools\u2019 \u201clargest non-staff costs\u201d, with market volatility meaning \u201cprices can spike unpredictably\u201d.<\/p>\n

\"\"
Bridget Phillipson<\/figcaption><\/figure>\n

She added: \u201cToo many schools are locked into broker-negotiated contracts with no protection from sudden rises.\u201d<\/p>\n

As part of the DfE\u2019s programme of maximising value for pupils, the government buys \u201cenergy up to 30 months ahead when market conditions are right\u201d.<\/p>\n

Phillipson cited one case where a trust saved almost \u00a380,000 in one year.<\/p>\n

Primaries could, on average, cut gas and electricity bills by \u00a34,900 a year, according to the DfE<\/a>. The figure stands at \u00a323,200 for secondaries.<\/p>\n

Steve Rollett, deputy chief executive of the Confederation of School Trusts, acknowledged the scheme\u2019s \u201cbenefits\u201d, but added: \u201cIt is not a panacea.\u201d<\/p>\n

The DfE has been approached for comment.<\/p>\n","protected":false},"excerpt":{"rendered":"

Academy trust issued government improvement notice as it struggled with gas and electric costs<\/p>\n","protected":false},"author":311204,"featured_media":247445,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[4],"tags":[2600],"post-theme":[2425],"class_list":["post-247499","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-energy-bills","post-theme-school-funding"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t