During this election period, numerous school issues have been raised, including by members of Headteachers’ Roundtable who have called on the next government to address concerns ranging from teacher recruitment to vexatious complaints.
Funding, too, has been in the headlines and within that it feels important to raise the issue of private finance initiatives (PFI) contracts that numerous schools are locked in to and are costing millions of pounds to maintain.
Many of these contracts were created during funding that entered the system, such as under the Building Schools for the Future programme in the early 2000s.
At the time, the idea of the PFI probably sounded great. Brand new buildings, contractual obligations to maintain them and all paid for over 25 to 30 years.
However, I suspect a great deal more attention was paid to the contracts themselves by the investors than those negotiating on behalf of schools.
Financial rises
As inflation has hit, costs for PFI charges have risen hugely. We know of schools that now pay almost £2 million a year and while that covers costs such as cleaners, catering and utilities, it also leaves schools with no say on how money is spent or opportunities for cost savings.
For example, in some schools, if a door handle breaks or a door needs fixing they could do it themselves, perhaps using an in-school handyman or local tradesperson.
For a PFI school, though, the work has to be done through their commission system and this can see costs spiral - I’ve heard of a school paying over £1,500 just to replace a broken door in a toilet.
Catering, too, is well known as an area where PFI contracts are leaving many schools frustrated, with reports earlier this year of schools raising concerns about the quality and quantity of food being provided.
This is something those of us within Headteachers’ Roundtable discuss and see issues with, too - both from member schools and colleagues across the sector. Given how important a good meal is for children - and for some it is the only proper meal they will have - this is a big issue.
Many schools would ideally like to leave these contracts - especially those in multi-academy trusts who have the scale to seek deals that are more financially sensible and set for shorter time periods so schools have more power in negotiations with suppliers during renewal.
Time to act
Sadly, though, many schools will be stuck in PFI contracts for many years to come as most were signed with 25- to 30-year agreements in place meaning there is little way out.
That all this is happening at a time of ever-tightening school funding seems perverse as it means a large portion of money meant for children’s education is simply going into the hands of PFI firms.
All this is why, as part of the Headteachers’ Roundtable’s Education Manifesto 2024, we have identified that PFI deals need to be looked at by the next government as part of the funding crisis in the system.
In particular, we assert: “No one should be making a profit from public money at the expense of young people; this has been facilitated by complex and perverse PFI contracts, stripping affected schools of essential resources.
“An urgent review needs to be undertaken to obtain best value for taxpayers’ money and put a stop to a valuable resource lining the pockets of private companies.”
If this happens, it means we can move closer to ensuring every school is funded adequately to pay for sufficient staff, provide warm safe buildings and have the agency to make savings so they can allocate spending to pupil need - rather than servicing a decades-old PFI deal.
Keziah is currently executive headteacher in The Mercian Trust. Keziah is co-founder and a strategic lead of WomenEd, as well as a member of the Headteachers’ Roundtable
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