Support to reduce school energy bills is to be scaled back – but other Government help remains available for those who put in a winning bid.

The energy bills scheme will be reduced from April, with only the schools that pay most for their energy continuing to benefit.

One in five schools qualify

When the current £18 billion energy bill relief scheme ends in March, just an estimated one in five schools will qualify for the new scheme.

It will be limited to those paying more than £107 per megawatt hour for gas or £302/MWh for electricity, compared to £75 per unit of gas and £211 for electricity under the original scheme.

Discounts will be automatically applied to bills.

“Locked into contracts”

The Government said the changes had come because wholesale prices had dropped significantly. The new measures are designed to help schools “locked into contracts signed before recent substantial falls…and provide others with reassurance against the risk of prices rises again”.

Geoff Barton, general secretary of the Association of School and College Leaders, said: “While it is right that there is a discount for those with the highest bills, we are concerned that many schools may not be eligible for this.”

Schools, academies and colleges can still apply, however, for two Government schemes that could save them money for the long term.

Energy-efficiency improvements

The next round of the Public Sector Decarbonisation Scheme (PSDS) is due to open in the Autumn, with grants available for schools to install lower-carbon heating and energy-efficiency improvements in their buildings – helping to cut energy bills, reduce fossil fuel emissions and fight climate change.

The Public Sector Decarbonisation Scheme (PSDS), is heavily oversubscribed, with bids served on a first come, first served basis, therefore we urge trusts to take advantage of the available funding by preparing a bid now.

Outstanding success rate

The Condition Improvement Fund (CIF) is due to open in October for its annual bidding round. Stand-alone academies, MATs with fewer than five academies or 3,000 pupils, sixth-form colleges and non-diocesan voluntary-aided schools can all apply.

Only around a third of CIF applications are accepted each year – but S2e’s success rate for clients is an outstanding 85%.

In the 2022-2023 round, £498 million was allocated for 1,405 projects at 1,129 institutions to address significant condition need, including funding for energy-efficiency and decarbonisation projects.

A new CIF priority project type for 2023-24 has been the critical replacement of coal and oil boilers with low-carbon heating systems.

Putting together the best possible application

S2e is ready to help advise schools, academies and colleges on whether they are likely to be eligible and how they can put together the best possible application. Contact us on tel: 0116 5070130 or email enquire@s2e.org.uk.