South Gloucestershire school trust quoted 414% rise in energy bill

A school trust leader has warned one of its school's energy bills could rise by 414% next month, based on one quote.

Chief executive Dave Baker said energy bills were fixed in 10 out of 11 schools run by the Olympus Academy Trust across south Gloucestershire.

He said if the other 10 schools followed suit its £907,000 energy costs could rise to £4.6m per year from 2023.

The Department for Education has said school budgets would rise by £7bn by 2024-45 compared to 2021-22.

The spokesperson said they "recognise that schools - much like the wider economy - are facing increased costs" and £4bn extra funding would be given to schools "in this financial year alone".

"This is a 7% cash terms per pupil increase compared with 2021-22 and will help schools to meet wider cost pressures, including energy prices and staff salaries," they added.

Mr Baker said the cost of energy for one of its schools was expected to increase from £38,000 annually to £196,000.

He said if their other 10 schools across south Gloucestershire were to follow suit when the current tariff expired, their annual bills would rise from £907,000 to £4.6m.

Mr Baker said: "£4.6m would be over 10% of our overall budget across the trust and it would break every single school.

"The risk is, although it's absolutely hideous, it may get worse.

"It's a really tricky time and the reality is, if we get a contract that is £4.6m, we won't be able to afford to keep going," he added.

Mr Baker said the planned 5% teacher and support staff pay increases, announced by the Department of Education in July, were also causing financial issues.

He said the pay increases, not funded by the government, would cost the trust 750k more than the trust had budgeted for.

Mr Baker said the rising cost of energy, inflation and the pay increases were a "perfect storm".

"We'll survive this coming year based on reserves, and how we planned, but we will not be able to go through another year."

Mr Baker said he hoped a new Secretary of Education would be appointed when a new prime minister is chosen, offering help to schools grappling with the rising cost of energy.

The education leader said: "The new Secretary of Education needs to make sure schools are viable and sustainable" otherwise "we and every other school will not survive."

Mr Baker said he planned to write to all parents across the trust in the first week of the new school term, asking them to write to their MPs, urging them to ask the government to either help with additional funding or provide an energy cap for public sector organisations.

"We'll absolutely need either a limit or we'll need additional money into our budgets in order to survive.

"They can't let schools and trusts go to the wall."

Mr Baker said "schools need to be places that are going to be warm and safe", especially as "there are families who's homes won't be warm."

"It's going to be a difficult winter I think," he added.

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