Schools paying too much for their energy will find it
easier to ditch overpriced deals and switch to a cheaper
supplier, using a new web-based service launched today by
Education Secretary .
The site allows schools to get instant quotes from a range
of gas and electricity firms, similar to price comparison
websites available for household energy.
It will help schools avoid fees charged by energy brokers
and reduce the more than £10billion a year that goes on
non-staffing costs – leaving more money for heads to spend
on frontline teaching.
The latest figures from 2016/17 show state-funded schools
in England spent more than £584 million on gas and
electricity. The average secondary school spends around
£90,000 a year on energy. Using the Department for
Education’s existing energy deals, schools have already
reported savings of up to 14% – the price comparison
website will help build on this.
It follows the Department for Education’s recent crackdown
on excessive fees charged by supply agencies, with the
launch of an online tool to help schools find temporary
staff. A free-to-use teacher vacancy service is also being
rolled out to cut recruitment costs for schools – currently
up to £75 million per year.
Due to the complexity of schools’ energy needs, many
currently have to go through brokers, which can incur high
fees. These can be as much as 5p per kilowatt hour – which
can add up to thousands of pounds per year. The new website
will allow schools to bypass brokers’ fees and deal
directly with suppliers, inputting information about their
energy use to generate tailored, transparent quotes, which
they can then compare.
It will also list providers offering renewable energy,
giving schools a simple way to reduce their environmental
impact.
Education Secretary said:
Many households shop around for the best deal on their
gas and electricity – and I want to help schools do the
same.
By saving money on their energy bills and avoiding high
broker fees, the more money schools will have to spend on
what really matters – getting the best teachers into
classrooms and giving their pupils a great education.
This website is the latest step in our efforts to help
schools reduce unnecessary costs, building on the School
Resource Management Strategy I launched last year to
provide practical advice and support.
The website, developed with Crown Commercial Service,
follows the Education Secretary’s pledge at the National
Association of Head Teachers’ annual conference in May to
work with schools to bear down on unnecessary costs so that
more money can be spent in the classroom.
It is launching with a limited number of energy suppliers
initially, but more will be added over time.
Schools can already use the Government’s benchmarking site
to see how their energy spend – among other costs –
compares with similar schools across England.
Other support the Department for Education has made
available includes:
- An online tool to help schools avoid excessive supply
agency fees when employing temporary staff – one school in
Merseyside saved £2,500 in three months;
- Rolling out a free-to-use teacher vacancy service –
this will help schools recruit effectively and cut
recruitment costs, which are currently up to £75 million
per year;
- Recommended deals that are helping schools to save
money on the things they buy regularly, such as printers
and photocopiers – one school in the North West has saved
an estimated £40,000 on its printing costs;
- A schools buying advice service, being piloted in the
North West and South West, providing hands-on support and
advice to schools on complex procurement. One school saved
£75,000 across a three-year cleaning contract, while 82
schools in the South West have saved an estimated £137,000
on water;
- A network of advisers providing practical support on
resource management, working with those schools that will
benefit the most. During the pilot phase of 72 deployments,
advisers identified £35 million of potential savings for
schools.
