Home Business News 90% of schools will go ‘bankrupt’ in 2023 amid the energy crisis with half to be in the red this year

90% of schools will go ‘bankrupt’ in 2023 amid the energy crisis with half to be in the red this year

by LLB Finance Reporter
23rd Oct 22 3:53 pm

Headteachers have warned that nine in ten schools will be insolvent by next year due to spiraling energy prices and a rise in teachers salaries to meet the cost of living demand.

They have further warned that teaching support roles could be lost and around half of all schools will be in the red before 2022 is over.

Headteachers have said that as a consequence of them running out of money there will be larger class sizes with a reduced curriculum, and the proposed spending cuts will finish many schools.

Speaking to the Observer, Paul Whiteman general secretary of the National Association of Head Teachers, warned, “There are no easy fixes left.

“Schools are cut to the bone. This will mean cutting teaching hours, teaching assistants, and teachers.”

The Oasis Foundation who run 52 academies in England also warned, “At this burn rate, in under three years we will be bankrupt.

“No one is in a position to keep going for very long eating their reserves.”

A spokesperson for the Department for Education said, “We understand that schools are facing cost pressures due to international events driving up energy prices.”

The spokesperson added that schools will receive £53.8 billion in funding this year as well as the energy relief scheme and there will be a “cash increase of £4bn.”

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