As head teachers and NHS bosses warn they will have to cut staff to pay school and hospital energy bills, the woman likely to become our new Prime Minister refuses to come up with a plan to avert the looming catastrophe.
Liz Truss wouldn't promise direct support, which she has previously derided as “handouts”, for households, instead promising VAT and income tax cuts, which her rival Rishi Sunak condemned as “incredibly regressive”.
Schools and hospitals are not covered by the energy price cap, which will hit £3,549 a year for those on default tariffs in October, and one hospital trust told the Mirror it expected its energy bills to rocket by around £20million this year.
Rory Deighton, of the NHS Confederation, said that last year’s £500million spend on energy costs was likely to be “eclipsed” this year, before getting even worse in 2023.
He told the Mirror: “The gap in funding from rising inflation will either have to be made up by fewer staff being employed, longer waiting times for care or other areas of patient care being cut back.”
He said the new PM must provide top-up cash in the next Budget ahead of the winter.
Challenging
Mr Deighton said: “The NHS needs at least £3.4billion to make up for inflation during this year alone. That’s before we face a winter of even higher wholesale energy prices.
“A failure to properly compensate the NHS for inflation will only heighten pressure on our health service as we move towards a winter we know will be challenging this year.”
Northumbria Healthcare NHS Foundation Trust said rising costs were a “particular challenge” and it was looking for ways to make savings and cut energy usage.
A spokeswoman said: “The energy market is in a constant state of flux so these increases could cost us an extra £20million compared to previous years.”
Shadow Health Secretary Wes Streeting said the NHS was already in the “biggest crisis in its history”. He said: “Patients are already unable to get a GP appointment, ambulance or operation when they need one.
“The last thing the NHS needs is a hole in its budget created by soaring energy bills.”
Gas and electricity prices for schools rose by 83% in the first quarter of 2022 compared to last year, analysis by the House of Commons Library reveals. The average state primary school paid £38,397 over this period, up from £20,982 in 2020/21, while secondary schools paid £153,258, up from £83,748.
Paul Whiteman, of school leaders’ union the NAHT, said: “Some of our members have reported rises of over 300%, the equivalent of several members of staff. Many are finding the only possible action they can take is to cut staff hours – in particular the hours of teaching assistants, who do incredibly valuable work supporting the most vulnerable and highest needs pupils.
“Money is being diverted away from education and from pupils and being given to energy companies instead. That just isn’t right.”
Shadow Schools Minister Stephen Morgan said: “Heads already report cuts to school trips, supplies and equipment and even staff, putting kids’ learning at risk.”
Kevin Courtney, of the NEU, said: “The government’s neglect of school funding is now clear for all to see. A huge hike in energy bills will make a bad situation even worse.
“Heads who have already had to cut to the bone are facing impossible choices on staffing and supplies.”
PM Boris Johnson said the next few months would be “very tough” but predicted a “remarkable bounceback”.
Shadow Treasury Minister Pat McFadden said showed “how little he understands the shockwave” caused by the price cap rise.
A government spokeswoman said “core schools funding” would increase £4billion this year.
On the NHS, a government spokesman said an additional £1.5bn had been provided to deal with “cost pressures”.
Liz Truss supporters have been warned against assuming the Tory leadership contest is “in the bag”. Ex-Cabinet Minister Simon Hart, who supports Mr Sunak, said premature celebrations were “really dangerous”.
Some Tories are regretting ousting Mr Johnson. A former minister told the Sunday Times: “People have seen the alternatives now and they aren’t convinced.”
