How to manage operational costs for schools and academies

Budgetary concerns are top of mind for most schools and trusts, and understandably so. Soaring energy costs, rising commodity prices, salary hikes and the increasing cost of contracts with private firms are making it increasingly difficult to make ends meet. 

The challenge for school and trust administrators is to make savings while still providing the best possible educational experience for students. Making cuts to teaching staff and learning resources should be avoided at all costs, but there are other areas where schools and trusts can improve efficiency and maximise the effectiveness of every pound they spend. 

The operation of school buildings and estates is the second largest cost for most schools after staff salaries. However, while salaries can rarely be trimmed without impacting the educational experience, with the right advice, your estates can become a powerful source of savings. 

Understanding operational costs in education building management

Operational costs in education building management are the day-to-day costs you incur when running and maintaining your school’s facilities. As a school administrator, your aim is to ensure the highest level of comfort for your students while minimising your operating and energy costs as much as possible. That sounds great in theory, but it’s easier said than done when there are so many moving parts.

There are the lighting, ventilation, heating, cooling and security systems, the maintenance and repair of the school buildings and grounds, improvements and renovations and other items such as insurance. Schools and trusts have limited budgets and resources and the school estate is low on a leader’s priority list. However, ignoring issues until they are unavoidable risks exacerbating the problem and increasing the costs. 

Components of operating costs

Operating costs can differ hugely from one school or trust to the next depending on factors such as the school’s size, age and condition, and how active the administrators are in managing their costs. The main costs involved in the operation of educational buildings are:

• Energy – According to Carbon Trust, UK schools could save over £44 million a year by implementing energy-saving strategies.
• Maintenance – Switching to a preventative maintenance strategy can help you make long-term savings and improve the condition of your buildings. 
• Repairs – Regularly checking the health of your properties can reduce replacement costs and help you avoid unpredictable repairs.  

Strategies for managing and reducing operating costs 

When it comes to your school’s buildings and estates, there are several strategies you can use to better manage and reduce your costs. 

Commission a condition survey

A condition survey gives you a complete picture of the health of every aspect of your estate, from your windows, roof and walls to the electrical, heating and ventilation systems. Importantly, it prioritises the improvements you can make and provides full costings. It also outlines the most urgent maintenance needs so you can perform remedial works before serious and costly issues occur.

Condition surveys also provide the documentary evidence you need when applying for government funding via the School Condition Allocation (SCA), Urgent Capital Support (UCS), and Condition Improvement Fund (CIF). 

Save energy

Given the age, size and condition of many schools, one of the easiest ways to reduce your operational costs is to make changes that help you slash your energy bill. Energy efficiency surveys identify the measures you can take to reduce your electricity and gas consumption and improve the efficiency of your school buildings.

On average, lighting can account for as much as 20% of the total energy cost in schools. Making simple changes, such as investing in sensors to ensure lights are off in areas that aren’t in use and switching to energy-efficient lighting, can be highly effective. 

With energy costs predicted to rise this winter, improving the insulation in school buildings should be another priority. Insulating pipework and loft spaces can reduce energy losses by up to 70% and 25% respectively. School windows are another leading cause of energy loss. Triple glazing is the most energy-efficient approach, but if your budget is tight, coating windows for insulation is more cost-effective. 

Entering into an energy partnership can reduce your energy bills without the requirement to pay anything upfront. In this type of agreement, an energy provider will fund the installation of solar panels or other renewable technology and you commit to a long-term power purchase agreement. That can reduce your energy costs and carbon footprint without denting your budget.  

Read more about the steps you can take to improve energy efficiency in your school or academy. 

Look closely at your current suppliers

Unless you’re stuck in a rigid private finance initiative agreement (PFI), you have the freedom to renegotiate contracts and move away from your existing suppliers. If you identify areas where costs are high, challenge the contractor and negotiate a price reduction in return for a renewal. If they refuse to renegotiate, switch to a lower-priced competitor at the end of your contract. 

Many schools fall into the routine of working with the same suppliers. It takes time to improve your buying decisions, but focusing on your existing contracts and trying to find the best value deals can create big savings.  

Impact of efficient operations on overall cost management

As the second highest cost for most schools and trusts, taking proactive steps to manage your operational costs can make a valuable contribution to your financial stability. Involving the right people at the right time, from specialist education surveyors to energy efficiency experts, will bring efficiency to your estate operations and improve the overall quality of the educational experience. 

Get in touch to discuss the steps we can take to help you regain control of your operational costs in education.