Listen to this story Members can listen to an AI-generated audio version of this article. 1.0x Audio narration uses an AI-generated voice. 0:00 0:00 Become a member to listen to this article Subscribe School leaders are warning of more cuts if ministers do not provide urgent help to cover surging energy bills caused by Donald Trump鈥檚 war with Iran. The calls came after a deficit-ridden academy trust was issued with a government notice to improve as it struggled to reduce gas and electricity costs. And, with the US president vowing to continue air strikes in the Middle East, Julia Harnden, of the ASCL leaders鈥 union, warned energy bill rises could leave schools 鈥減aying the price鈥 for years. 鈥淲ith this in mind, we would hope that the government is considering what financial support for the sector might be necessary,鈥 she continued. 鈥淥therwise, it will be very difficult for schools and colleges to absorb these extra cost pressures without having to look at making cuts to provision.鈥 Market volatility Schools Week聽analysis of the latest government data also suggests school energy costs spiked in 2023-24, with 2.3 per cent of income used to cover bills. The figure slipped to 1.7 per cent last year but stayed above levels seen prior to Russia鈥檚 2022 invasion of Ukraine. Average gas and electricty prices in 2026 have so far been about 11 per cent higher than those seen two years ago. And London Stock Exchange figures suggest gas and electricity prices are on track to reach their highest levels on average since 2023 by the end of this year. Months after the Ukraine war began, the then-Conservative government unveiled its energy price guarantee scheme, which provided discounted wholesale gas and electricity for all non-domestic customers. This included schools, amid 鈥渁pocalyptic鈥 hikes of up to 587 per cent. Chris Felgate, executive director at Ginger Energy, said schools were 鈥渇acing renewed financial pressure as energy costs rise鈥 following the outbreak of the Iran war. He cautioned that those renewing contracts now 鈥渕ay face higher prices than those available before the escalation鈥, having witnessed rises of up to 18 per cent. Harnden said schools were 鈥渧ery susceptible鈥 to these pressures. 鈥淢arket volatility and high prices do not just impact on energy contracts but also affect transport costs and food supply chains which can put further pressure on school budgets,鈥 she added. School鈥檚 energy woes Last week, the Department for Education (DfE) published which it issued to the Sacred Heart of Mary Girls鈥 School in Upminster, east London, over the trust鈥檚 鈥渨eak financial position and financial management, governance and oversight鈥. Officials accused it of failing to prepare and monitor financial plans 鈥渢hat ensure the trust remains a going concern鈥, among other things. They said it had not taken 鈥渢imely action to maintain financial viability and address budget variances鈥. Accounts show the school racked up a 拢541,000 deficit by the end of 2024-25, despite it being 鈥渕ajorly oversubscribed鈥, with 鈥渙ver 400 [applications] for 120 places鈥. One of the reasons given for the financial issues was the school鈥檚 inability to generate the 鈥渟ignificant savings鈥 it had hoped to achieve on gas and electricity. It registered just 拢36,000 in savings, 鈥渕ainly due to heating being switched off after 1pm each day鈥. The DfE suggested finding 鈥渁lternate suppliers for key contracts such as energy鈥. 鈥楧ouble squeeze鈥 Felgate argued that schools were being hit by a 鈥渄ouble squeeze鈥 on energy bills as the cost of transporting energy, government policy changes and supplier charges 鈥 all of which are passed on to customers 鈥 have also risen. 鈥淭hese charges mean that even schools cutting consumption can still face higher bills,鈥 he explained. 鈥淔or leaders already managing tight budgets, the result is simple: more money spent keeping buildings open, and less money available for pupils.鈥 Alex Green, the head of the Let鈥檚 Go Zero campaign, noted many leaders were responding to the issue by reducing energy use across their estates and investing in renewables, moves that provided 鈥済reater security and resilience鈥. 鈥淲ith around 50 per cent of energy typically used when buildings are unoccupied,聽 during evenings, weekends and holidays, it is clear that significant savings can be made,鈥 she said. 鈥淭hrough low or no-cost measures, often focused on behaviour change, schools can reduce energy consumption and redirect those savings straight back into supporting students鈥 education.鈥 Vivienne Qurrey, headteacher at Sacred Heart of Mary, stressed that the academy was 鈥渙ne of many schools who are facing significant financial constraints and challenges currently鈥. It had a 鈥渞obust鈥 plan in place and is working with trustees and the DfE 鈥渢o ensure the school will continue to be a going concern and thrive long into the future鈥. 拢80k saved Education secretary Bridget Phillipson this week described energy as one of schools鈥 鈥渓argest non-staff costs鈥, with market volatility meaning 鈥減rices can spike unpredictably鈥. Bridget Phillipson She added: 鈥淭oo many schools are locked into broker-negotiated contracts with no protection from sudden rises.鈥 As part of the DfE鈥檚 programme of maximising value for pupils, the government buys 鈥渆nergy up to 30 months ahead when market conditions are right鈥. Phillipson cited one case where a trust saved almost 拢80,000 in one year. Primaries could, on average, cut gas and electricity bills by 拢4,900 a year, . The figure stands at 拢23,200 for secondaries. Steve Rollett, deputy chief executive of the Confederation of School Trusts, acknowledged the scheme鈥檚 鈥渂enefits鈥, but added: 鈥淚t is not a panacea.鈥 The DfE has been approached for comment.