The UK education sector is under pressure to balance tight budgets with the growing demand for sustainable practices.

Educational institutions, from schools to universities, are grappling with rising energy and water costs while striving to meet environmental expectations from students, parents, and regulators. The challenge is compounded by ageing infrastructure, which is often costly to upgrade and inefficient in terms of energy use.

The financial impact of rising utility costs has been especially hard on schools and universities that are already stretched to meet other financial demands. According to a report Centrica UK, universities spend around £400 million annually on energy bills, with much of this wasted due to inefficient building systems(1). As such, adopting energy-efficient technologies such as LED lighting, upgraded heating systems, and improved insulation is critical for schools looking to reduce costs and meet net zero targets.

Further compounding the issue, sustainability requirements are becoming more stringent. For example, the UK government has committed to a 68% reduction in emissions by 2030, meaning educational institutions must find ways to lower their carbon footprints(2). Moreover, the increase in demand for ESG-driven practices has led to heightened expectations from parents, students, and regulators for schools and universities to demonstrate progress towards sustainability.

Many educational institutions are turning to government funding schemes to help fund energy-efficient upgrades. These include schemes such as the Public Sector Decarbonisation Scheme (PSDS), which supports educational institutions in reducing their carbon emissions. However, the application process for these funding opportunities can be complicated and time-consuming, especially for smaller schools or those with limited internal expertise(3).

As sustainability becomes a higher priority for the sector, it is clear that schools and universities will need to invest in long-term strategies for reducing their environmental impact, even if immediate financial challenges are present.

Bibliography

1 ‘Universities could save £2.2bn on energy bills by 2035’ (Accessed May 2025) https://www.qaeducation.co.uk/news/university-energy-bills/

2 The UK’s plans and progress to reach net zero by 2050 (Accessed May 2025) https://commonslibrary.parliament.uk/research-briefings/cbp-9888/

3 Public Sector Decarbonisation Scheme (Accessed May 2025) https://www.gov.uk/government/collections/public-sector-decarbonisation-scheme