Ed Balls has told schools to cut their energy bills and share resources in order to save tens of millions of pounds of public money. The Schools Secretary said headteachers need to start planning to make savings now in order to protect teaching jobs and frontline services in the future amid growing pressures on the public purse. He announced proposals for a £12 million initiative to give schools hi-tech “smart meters” to cut their energy bills and reduce their carbon footprint.

The Government believe the meters and other energy efficiencies could save primary schools up to £700 a year each and secondaries up to £3,000 a year each on fuel bills alone.

Schools should also be negotiating better deals on computers, cleaning and catering contracts and other services, Mr Balls told the Specialist Schools and Academies Trust (SSAT) annual conference in Birmingham.

Headteachers should compare their expenditure to other schools and examine their staffing plans to see if changes can be made to ensure staff are used effectively.

Mr Balls also urged schools to consider partnering with other schools to share services. He told the conference that it is time for schools to have an “honest debate” about making the best use of resources.

Mr Balls said: “Together we have opened up opportunities for thousands more children and young people. I am committed to ensuring that this progress continues and that despite tougher times vital frontline services are maintained.

“Now more than ever we need to ensure we are getting real value for money from our investment. We will only achieve efficiency savings while at the same time continuing to improve school standards and raising levels of achievement by working together.”

Christine Blower, general secretary of the National Union of Teachers, said: “If purchasing were organised at a strategic level through local authorities as formerly, it is possible it could result in some savings. Asking heads to get together with their colleagues in neighbouring schools to negotiate deals is probably not the best use of headship time.”

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