Question to the Department for Education:

To ask Her Majesty's Government what assessment they have made of the impact of rising energy prices on (1) nurseries, (2) primary schools, (3) secondary schools, and (4) colleges; and what plans they have to assist in covering these costs.

We recognise that schools, colleges and nurseries are facing inflationary pressures, and we continue to monitor the impact of rising energy costs on education providers, paying close attention to financial health of the sector. Cost increases should be seen in the wider context of funding across these providers, and investments secured at the 2021 Spending Review.

The department has announced additional funding for the early years entitlements worth £160 million in financial year 2022/23, £180 million in 2023/24 and £170 million in 2024/25, compared to the current year. This is for local authorities to increase hourly rates paid to childcare providers for the government’s free childcare entitlement offers and reflects cost pressures as well as anticipated changes in the number of eligible children.

The core schools budget, for pupils aged 5-16 and 0-25 in the case of high needs funding, will see a £4 billion cash increase in the core schools budget next year, taking total funding to £53.8 billion. Overall, this represents a 5% real terms per pupil boost, helping schools meet the pressures we know they are facing. We know that the vast majority of school expenditure is devoted to staff costs. This means that even while energy costs are rising, inflation in this area would have an impact on only a small portion of a school’s budget overall.

The department has made available an extra £1.6 billion for 16-19 education in 2024/25 compared with the 2021/22 financial year. This includes an up-front cash boost which will see the rate of funding per student increase by over 8% in the 2022/23 academic year. We are simplifying funding, removing the separate Teacher’s Pay Grant for schools’ post-16 provision and using this funding to increase the national rate of funding for a Band 5 student to £4,542. We will match this increase for other providers, including colleges to help with pressures across the further education sector. The very significant increase to the national funding rate and the other funding increases alongside this demonstrates our commitment to 16-19 education and will help with college income. We are also continuing to invest in education and skills training for adults through the Adult Education Budget, £1.34 billion in financial year 2021/22.

All schools can access a range of School Resource Management (SRM) tools to help them get the best value from their resources. Our SRM tools include two recommended deals for energy costs and ancillary services relating to energy, which can be accessed via the 'Find a DfE-approved framework for your school' service on GOV.UK.

We know that every school’s circumstances are different, and where schools are in serious financial difficulty, they should contact their local authority or the Education and Skills Funding Agency (ESFA). Where colleges are at risk of running out of cash, emergency funding is considered by the ESFA on a case-by-case basis and based on a thorough assessment of each college's circumstances and the minimum funding needed to minimise disruption to students.