Two recent surveys have highlighted publicly what ERA is hearing daily from our clients in the education sector – there is a looming funding crisis.
The surveys were entirely independent of each other yet had remarkably similar findings. The annual National School Procurement Survey carried out by Incensu.co.uk found that funding was a concern for 76% of respondents, an increase from 54% last year. Following this, a survey by the National Association of Head Teachers found that:
“45% of school leaders thought their budget would be untenable, on current projections, within two years. 67% said they would not be able to balance the books in four years’ time.”
Worryingly, staff costs in terms of national insurance and pensions will increase by more than 5% from this school year, even as budgets are squeezed further.
The consequences of this funding gap are spelt out in stark fashion. Schools are cutting back on items such as equipment, maintenance, and teaching staff, and I.T. replacement cycles are being lengthened. Perhaps of even greater concern, 76% of Heads were using reserves to balance the books, a clearly unsustainable policy. It is inevitable that if this continues, then pupils’ education will suffer.
Some hope was offered by the Incensu survey in the form of increasing collaborative purchasing. However, problems were identified even here, with the research highlighting that schools were concerned about the lack of time and expertise to effect the necessary changes. Interestingly it was also thought that making Procurement a high enough priority would be a further obstacle to change.Unfortunately if the surveys are to be believed, schools will soon be forced into confronting the issue head on by the need to take radical action, so it might be wiser to stay ahead of the game and take action now.
If you identify with the serious situation identified by these two surveys, then call ERA to find out how we can help. Our purchasing leverage of >£400m, niche category expertise, and deep pool of time, resources and expertise can bring you all the benefits of collaborative purchasing and more. That’s because each solution is designed specifically for your needs, meaning that suppliers will treat you as a valued individual customer rather than as part of a buying group, even while you enjoy significant and sustainable savings.
Who knows, the savings we find may allow you to replace those outdated computers, or even allow you to hire extra staff. For your pupils that may be priceless.