It is not a secret that schools in the UK are suffering from a funding crisis. The Stop School Cuts coalition reports that schools have lost £4.5 billion in real terms over the last 16 years. There are several reasons for this; it is predominantly made up of declining birth rates, no funding for staffing pay increases, the SEND crisis and rising inflation. Schools are doing everything that they can to plug the gaps or reduce costs without affecting student outcomes, but with staffing costs taking up an average of 85% of total school costs there isn’t a lot of opportunity to make savings.
Schools are looking to ways in which they can raise additional money, but they are limited. The main opportunities are through applying for grants, lettings, selling services to third parties, donations, sponsorship, and relying on school alumni and crowdfunding. The DfE policy document ‘Maximising Value for Pupils’ suggests that schools use their estates for community benefit whilst maximising and generating income.
Schools are increasingly using their site to raise money by taking lettings bookings and this is a great area of often untapped income. If you are going to go down this route there are a few things to consider:
Who will manage the lettings?
Schools can look at managing lettings in-house or at using a third party to run their lettings for them. There are pros and cons for each option.
Managing lettings in-house comes with an administrative burden. Consider who will be responsible for taking enquiries and bookings, managing payments, and chasing invoices. Ensuring that all costs are considered when looking at profitability, for instance caretaker time, heating and lighting as well as any necessary maintenance. A third-party lettings company will manage most of this for the school, but there will be a financial implication. It is important that schools carry out a cost benefit analysis before making a decision on which route to take.
What will you charge?
Ensure that you have a lettings policy that covers all of the school's needs. This should include your rules on cancellation and refunds so that there can be no confusion when issues do arise. Consider what similar sites are charging within your school vicinity and make sure your costs are competitive and realistic. Ensure transaction charges are included in your costings and that you are making a ‘real’ profit.
Make sure you are compliant.
Keeping Children Safe in Education (KCSIE) states that schools are legally responsible for ensuring appropriate safety arrangements are in place when a third party is using the site. Hirers must have relevant safeguarding checks and policies in place, as well as indemnity insurance. A third-party company will do these checks for you, but it is still crucial you are clear that they have been done in line with the latest guidance.
How will you market your space?
You need to ensure that potential hirers know that they can rent your space to ensure you are reaching your full financial potential. Marketing your facilities in your community will be beneficial but can be time-consuming. Ultimately, you won’t generate any income without people being aware of what opportunities you have to offer.
What are the benefits of lettings?
The financial benefits of letting out the school site are indisputable, but there are multiple additional benefits. In England, 71% of indoor sports facilities are owned by educational establishments. Making these available to the community will support community wellbeing by offering spaces for the residents within the school area to get together.
By putting your school at the heart of the community, you will be visible to families who may not normally get an opportunity to see your school. This will help with pupil recruitment, which is crucial in the current climate of falling rolls.
Letting out your facilities is a great way to establish your school at the heart of the community whilst generating some much-needed income. Vivify Venues will support you by advising you on how to maximise opportunities for generating income. Working with over 250 schools across the UK, they have plenty of experience to support you.
Please come and see us at the Schools and Academies Show on stand K18 to talk to us about what you could achieve in your school. You could also have a go at our Spin the Wheel, and enter our competition to win a school hamper with a voucher for your school to spend on sporting equipment.
