Question to the Department for Education:

To ask the Secretary of State for Education, whether her Department provides financial support to (a) schools, (b) academy trusts and (c) local authorities for the cost of (i) overheads and (ii) maintenance required under the terms of private finance initiative contracts.

The Mid Bedfordshire Upper Schools PFI contract covers two schools and was signed on 22^nd December 2003.

The department’s private finance initiative (PFI) Revenue Support Grant (RSG) funding for the Mid Bedfordshire Upper Schools Project is paid to the Local Authority, Central Bedfordshire Council, rather than directly to schools. No payments are made by the department to Bedfordshire Schools Trust Ltd in relation to the Mid Bedfordshire Upper Schools PFI contract. The department has paid PFI RSG funding of £1,886,314 for each of the last ten years from 2014/15 to 2023/24 to Central Bedfordshire Council. All payments under Mid Bedfordshire Schools PFI Project to Bedfordshire Schools Trust Ltd are made by Central Bedfordshire Council.

The department supports local authorities that entered schools PFI contracts by providing Revenue Support Grant funding for the term of the PFI contract, which is normally 25 years. Central Bedfordshire Council, as the contracting party to Mid Bedfordshire Upper Schools Project PFI agreement, combines RSG grant funding from the department, plus additional funds from their own resources, to pay the PFI unitary charge to the contractor. The schools within each PFI contract ordinarily contribute towards the cost of the facilities. This applies equally to maintained schools and to academies.

The department also supports schools that have unavoidable extra premises costs related to their PFI contracts through the ‘PFI factor’ in the schools national funding formula (NFF). This funding is paid out to local authorities through the Dedicated Schools Grant (DSG) and is then allocated to schools by local authorities through their own local formulae.

The PFI factor only covers unavoidable extra premises costs, primarily related to the building itself. Costs which all schools face, such as facilities management and energy costs should be covered by the funding schools receive from the other formula factors in their local authority’s funding formula.