Independent schools in the UK will now need to account for 20% VAT on all education services, vocational training, and boarding services.

The removal of VAT exemption, announced by Chancellor Rachel Reeves in the Autumn Budget and introduced on January 1st, also affects fees invoiced or paid on or after 29 July 2024 for school terms starting after January 2025. (1)

With the new pressures on operating costs, independent schools could find effective solutions by investing in cost-reducing tech that can lower energy and water consumption. As an adjunct, the technologies could also reduce carbon emissions.

There are 3 key actions that schools can take to reduce energy and water costs: (2)

• understand energy usage and conduct an energy audit, to target where to save energy

• develop a plan using the energy audit to encourage good practices, behaviours and further interventions

• implement and manage the proposed interventions to reduce energy consumption.

An energy and water audit would assess a wide range of areas including:

• lighting

• heating

• water (cold and heated)

• ICT technology & other equipment

The audit might also pick up a need for simple behavioural changes as well as more complex interventions, needing investment and planning. Measures considered should be the most effective, with reasonable payback periods, and based on the condition of buildings available resources and  individual needs. It’s important to comply with the relevant regulations and follow health and safety guidance.

For schools businesses with more larger and complex estates, the energy audit could also analyse energy data, predicting energy and water use with scenarios that assess how different energy efficiency interventions might affect running costs.

Top tech targets for energy and water efficiency

Lighting

Smart controls: Occupancy sensors help to reduce unnecessary energy consumption and time switches can ensure that lights are used only when needed. They also reduce the reliance on user actions, helping to maximise energy savings.

Set timers, sensors and controls to suit operational needs, including adjustments for the seasons. Pay special attention to security lighting, which can be energy intensive.

Install movement sensors to make sure lights are switched on only when the area is in use. Ensure that the ‘lag times’ (the time from the last movement being detected to the lights going off) are appropriate for the area. Common lag times are 15 minutes or classrooms, 5 minutes or less for corridors and toilets. (3)

Daylight sensors can maximise use of natural daylight and reduce unnecessary use of energy intensive artificial lighting, and many motion sensors have daylight sensors as part of the unit.

LED lights: Replace inefficient lights, such as fluorescent and HID, with LED solutions that can reduce energy consumption by over 84%, when used with movement and daylight sensors. (4)

On-site energy production

Solar panels: Solar panels, also known as photovoltaic panels (PVs), capture the sun’s energy and convert it into electricity, for immediate use, storage or selling it to the national grid. An exhaustive energy audit might include solar power investigation or a specialist could assess existing roof space for potential and structural integrity.

Solar thermal panels: This technology captures the sun’s energy and uses it to heat water directly. The heated water is then stored for use within the building.

Water saving

Taps: Eco taps deliver water savings of typically between 50 –70%, with some specialist taps achieving up to 90%. Sensor taps are not only more hygienic, but also guard against water wastage which occurs when traditional taps are left running.

Water saving basin and bath mixer taps, as well as automatic sensor and self-closing taps from top eco brands: Perfect for both domestic and commercial bathrooms

Tap aerators and inline restrictors are also very effective budget solutions, with savings of more than 50% in many cases.

Toilets: Ultra-low flow toilets can reduce water usage by 75%. Low flow toilets and specialist valve solutions can reduce water by 50%. Mitigating water wastage caused by leaking cisterns is significant and getting this addressed can also deliver further efficiency savings

Urinals: Controls added onto existing urinal cisterns can reduce water usage by up to 75%. For example, two urinals sharing a 5 litre cistern would see reductions of 164,000 litres per year, with savings from £400 – £600.

Waterless urinals: Waterless urinals reduce water consumption by 100%. This can add savings in the region of £250 per urinal per year. Waterless urinals also prevent leaks and urinal floods.

Shower heads:  Low-flow shower heads can reduce water consumption by more than 50% in many areas.

Hand Dryers: Eco hand dryers use 80% less energy than a standard 1.5 kW hand dryer. Paper towels in a busy workplace are more expensive to run than an eco-hand dryer and cannot be recycled, going straight into landfill.

Other interventions  could include:

Electric point-of-use water heaters with low storage volumes in areas where long pipe runs are needed to connect to the central hot water supply. This can help reduce heat loss through the pipework. Install timer-controlled electric switches on point-of-use water heaters to automatically turn them off.

Insulate pipes and calorifiers in the main plant room, distribution routes and where pipework runs close to drinking water taps.

Recommission the water system can bring it back to optimum operating conditions.

Heating

Optimise settings: Adjust temperature settings and consider reducing the temperature in some areas. Suitable minimum temperatures are:

• 18°C for parts of the building where there is a normal level of activity, such as classrooms and offices

• 21°C for areas where the occupants are inactive or sick

• 15°C for other teaching accommodation, washrooms, sleeping accommodation and circulation areas

• A 20°C internal set point for a school is typically the ideal level. (5)

Motor controls

Variable Speed Drives: VSDs and other high-efficiency products are industrial electric motors where the speed can be adjusted by an external controller to make significant savings in energy usage.

VSDs work like a ‘dimmer switch’ – they automatically reduce the speed of a motor when it is not busy. They can drastically reduce the amount of energy used in refrigeration, pumps, ventilation fans, air compressors etc.

In SaveMoneyCutCarbon’s experience, using a VSD to slow down a fan or pump motor from 100% to 80% can save as much as 50% on energy use with payback as short as six months.

Electric vehicles

Independent schools might consider electric vehicle (EV) charging points. This tech could provide “destination charging” revenues for visitors and during out-of-school times.

EV charging points can make it more convenient for staff and visitors to use EVs and help schools reduce environmental impacts by promoting sustainable transportation. 

The Workplace Charging Scheme grant is available to independent schools and offers up to £350 per chargepoint socket. To be eligible, schools must:

• Have dedicated off-street parking

• Have a site survey confirming the site can support EV charging

• Not have applied for a grant for the same chargepoint under any other grant scheme.

There is also an electric vehicle infrastructure grant scheme for SMEs that should be available to independent schools.

ICT

Cloud-based alternatives can replace energy-intensive computing equipment such as servers that house management information systems and  file storage.

Replace ICT equipment at end of life with energy-efficient alternatives, including cloud-based laptops, tablets or mini desktops with Wi-Fi capability, as they typically use less energy than standard desktop computers.

Bibliography

1 ’VAT on private school fees’ (accessed January 2025) https://commonslibrary.parliament.uk/research-briefings/cbp-10125/

2 ‘Energy efficiency: guidance for the school and further education college estate’ (accessed January 2025) https://www.gov.uk/government/publications/energy-efficiency-guidance-for-the-school-and-fe-college-estate/energy-efficiency-guidance-for-the-school-and-further-education-college-estate

3 ‘Energy efficiency: guidance for the school and further education college estate’ (accessed January 2025) https://www.gov.uk/government/publications/energy-efficiency-guidance-for-the-school-and-fe-college-estate/energy-efficiency-guidance-for-the-school-and-further-education-college-estate

4 ‘Energy efficiency: guidance for the school and further education college estate’ (accessed January 2025) https://www.gov.uk/government/publications/energy-efficiency-guidance-for-the-school-and-fe-college-estate/energy-efficiency-guidance-for-the-school-and-further-education-college-estate

5 ‘Energy efficiency: guidance for the school and further education college estate’ (accessed January 2025)https://www.gov.uk/government/publications/energy-efficiency-guidance-for-the-school-and-fe-college-estate/energy-efficiency-guidance-for-the-school-and-further-education-college-estate