VIEWS & OPINION Achieving more with less – a new model
for school purchasing Comment by SIMON HILL, Managing Director, YPO
As schools face unprecedented budgetary challenges, buying patterns have fundamentally changed, and public sector purchasing organisations like YPO are responding with practical solutions to help schools buy better.
Schools across the country are caught in a challenging financial trap. On one hand their budgets are reducing in real terms yet they must continue to, not only meet the cost of the wage bill, keep the lights on, and maintain buildings, but at the same time invest in curriculum equipment and resources to deliver teaching excellence. They’re finding increasingly that balancing all of those competing requirements is an almost impossible task.
When tackling this ever-growing pressure they are forced to ‘make do and mend’. While it’s possible to live with tired IT equipment and text books for another year, it’s not an option to cease paying wages or the energy bill. With tough decisions to make, investment in equipment and resources is always cut first, but that stifles innovation in the long term. It means schools can’t keep up with the latest techniques in teaching and learning.
Over the years school buying patterns have change quite fundamentally. Forty years ago, when YPO was established, local education authorities bought everything centrally and they used public sector buying consortia like YPO. Bulk purchasing clearly means a better price in the market place. However, some school budgets have now been devolved down to individual schools which, although it gives schools
greater control, it means their buying power is greatly reduced. We believe it is important to join those links back up and create purchasing power on behalf of the education sector so that maximum value for money is achieved.
Public sector purchasing organisations have considerable purchasing power, buying millions of pounds of teaching products every year, to achieve real value for money for schools, at the same time as knowing that all profits are returned to the public purse. Many schools are unaware that public sector purchasing organisations can also support them with the procurement of services such as electricity supply, insurance and grounds maintenance. The same principles apply. A public sector purchasing organisation will do big national deals with the suppliers and schools can access those contracts and the resulting competitive pricing. It’s worth noting that it’s not just big blue chip national providers. Many schools already have established relationships with suppliers at a local level and it’s important to maintain those relationships, which play a big part in supporting local economies. To that end, public sector purchasing organisations are increasingly working with SMEs to ensure they have access to the same tender opportunities as bigger national businesses.
Challenging budgets and financial constraints are the new reality for schools, and it’s unlikely to change for many years. But there are ways that schools can deliver efficiencies and stretch budgets to achieve more with less.
Saving money is great but making money is better!
Comment by MARK STEVENSON, managing director of schools’ energy consultancy, Bright Spark Energy
Budget reductions have seen schools looking at ways of saving money. However, some schools across the UK are looking at their budgets from another angle; many are actually making money, by installing solar panels so that they sell energy back to their provider.
Firstly, let’s look at energy supply in schools. The facts are that prices are rising by up to 10 per cent per annum. Expenditure on energy consumption in schools is one of the top five highest costs with some of the larger schools spending over £100,000 per annum on gas and electricity.
The most common reasons for discarding the idea of solar panels is that schools worry that there is a high, initial investment, but there are numerous government and local authority grants available for sustainable energy. Thankfully, at Bright Spark Energy, we know where to look and how to apply for these. The grants cover the initial cost of having the solar panels installed, and the work is carried out with no disruption to learning. Sustainable energy has evolved dramatically over recent years. Now solar panels generate
enough energy in the winter to cover a school’s costs, while in the summer the excess energy generated can be sold back to the energy supplier to actually raise money for the school. In the first year alone, an average school can save £1,949.67 on energy costs, but when only 90 percent of the solar power is used, this leaves 10 per cent to sell back to the energy supplier. What is important to remember is that the saving is cumulative, so by year five, the school will have conservatively saved £11,632.28.
The other important benefit of solar technology is its impact on teaching and learning. What better way to set an example to your students and the wider community, than by using sustainable energy?
However, solar power is not the only consideration that schools should be making.
Energy supplier
Reviewing your energy supplier at regular intervals is something few schools have time to do. Bills are so complex, it can seem easier to stick with the current broker or local authority scheme. We
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recommend you use a company like ourselves to calculate the right supply initiative for you, and ensure this is reviewed on a regular basis; the potential costs savings are massive.
Buildings
The next question to ask is about your building’s efficiency. Which classrooms are used the most? Are some inner rooms left empty while outside cabins are used? Are all the lights and computers turned off at night?
LED Lighting
Switching to LED lighting is also part of the review we carry out in schools. But beware: not all LED lighting is a good thing; sadly, like any growing industries a few unscrupulous companies are making large amounts of money by selling poor quality LED lighting. But, when you get it right, the benefits are substantial!
We recommend schools have an energy consumption health-check every two years, taking a holistic approach to energy saving. By looking at these few aspects of your school, you will reap notable rewards.
October 2017
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