Energy price guarantee announced for schools

Prime Minister Liz Truss has announced a new six-month scheme for businesses, including public sector organisations like schools, which will offer equivalent support as is being provided for consumers. This is a "guarantee" that they will pay no more than £2,500 a year on their energy bill for the next two years from 1st October, through a new Energy Price Guarantee which limits the price suppliers can charge customers for units of gas.

After this initial six-month scheme, the government will provide ongoing, focused support for vulnerable industries. There will be a review in three months’ time to consider where this should be targeted to make sure those most in need get support.

Geoff Barton, General Secretary of the Association of School and College Leaders, said: "The financial pressure they face as a result of soaring energy costs is eye-watering and unsustainable, and this intervention is desperately needed. However, we are concerned that the Prime Minister’s announcement seems to indicate that this guarantee will last for only six months and we will be seeking clarification about what happens beyond then, as well as more detail about exactly how the guarantee will work.

"There is absolutely no way that schools and colleges can bear unrestrained energy cost increases at any point without this impacting on educational provision."

Leora Cruddas CBE, Chief Executive of the Confederation of School Trusts, said: "[The support] is desperately needed. However, if this in place for only six months, then that creates its own set of difficulties. Schools and Trusts need budget security over the whole financial year, not just for the sixth-month period beginning in October 2022.

"The late announcements on the Teachers’ Pay Award and Support Staff Pay offer has already impacted on fiscal planning for Trusts. Further uncertainty over energy costs in this financial year will impact negatively on the ability of Trusts to make secure financial decisions and exercise financial governance.”