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<p>The department recognises that schools will be facing cost pressures in the coming
months due to the increase in energy prices. The department is looking carefully at
how cost increases will impact schools and we are considering what additional support
the department could offer.</p><p>The department knows 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 a small portion of a school’s
budget overall. The department pays close attention to the financial health of the
sector, and we are closely assessing where energy costs may more significantly impact
schools’ financial health.</p><p>The energy market remains volatile and whilst prices
have reduced recently, they remain high against long-term prices. Individual schools’
situations will vary significantly, depending on their energy contract length, if
the energy rate is fixed for the life of the contract or variable during the contract,
when the contract is due for renewal, and who the suppliers are.</p><p>Frameworks
approved by the department are available to all state-funded schools to provide renewal
quotes, where required. The guidance to finding a suitable framework is available
here: <a href="https://www.gov.uk/guidance/find-a-dfe-approved-framework-for-your-school"
target="_blank">https://www.gov.uk/guidance/find-a-dfe-approved-framework-for-your-school</a>.
Alternative providers are also available, including from other public sector buying
organisations. It remains the responsibility of individual schools and trusts to decide
who their energy suppliers should be.</p><p>The department continues to recommend
that schools do not allow their existing contracts to expire before contacting their
current supplier to discuss a contract extension. This is because buying energy out
of contract is more expensive than buying at the market rate. Any changes to an existing
energy contract require careful consideration of the terms and conditions and the
costs and risks associated with changing supplier. Current energy market prices are
likely to be significantly higher than any existing agreement.</p><p>The ‘get help
buying for schools’ procurement team is available to provide schools with free advice
and guidance to all state-funded schools on their energy contracts. This service can
be found here: <a href="https://www.get-help-buying-for-schools.service.gov.uk/procurement-support?referred_by=aHR0cDovL2ZpbmQtZGZlLWFwcHJvdmVkLWZyYW1ld29yay5zZXJ2aWNlLmdvdi51ay9zZWxlY3Rpb24=/"
target="_blank">https://www.get-help-buying-for-schools.service.gov.uk/procurement-support?referred_by=aHR0cDovL2ZpbmQtZGZlLWFwcHJvdmVkLWZyYW1ld29yay5zZXJ2aWNlLmdvdi51ay9zZWxlY3Rpb24=/</a>.</p>
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