Private finance initiatives have left many schools with no money to spend on essential repairs, as contractors raise their costs and requirements
A large legal battle may be in the future for the schools in disrepair, located in Stoke-on-Trent, as they dispute that adequate work has been carried out.
The PFI contracts holding these schools have been in place for around two decades, with many of them nearing their end.
Nearly half of the schools in disrepair are withholding funds
42 of the 88 affected schools are refusing payments to contractors, stating that the repair work has not been adequate nor sufficient, with many of the schools still being affected by damp, structural issues, crumbling plaster, and infrastructure issues including water pumps not providing clean water.
35 of those 42 schools have received letters from Stoke-on-Trent City Council threatening legal action if they do not pay.
BBC investigations and interviews found a myriad of major issues in several of the schools, including:
- Burst radiators sending boiling hot water over large areas
- Malfunctioning water pumps and heating systems threatening school closure
- Unreasonably strict contractual obligations including keeping grass under 2.5cm in the middle of winter
Many of the schools in disrepair under PFI contracts have also said that, in the face of rising maintenance costs (one school had a rise of £151,000 over four years), they have not been able to pay the full costs. With many contracts coming to an end in October, they then fear the potential legal battle to come as firms claim their money back.
The PFI contracts lock the schools into hiring contractors from Equans for maintenance. Evidence has shown that Equans often have had to be chased for repair work. In some cases, work was also not carried out due to being too expensive or not essential.
PFI contracts were scrapped in 2018 due to concerns for public value
When PFI contracts were heavily used in 1990 under the Blair government, it was thought that they would provide more public value. Many of the schools in disrepair in Stoke-on-Trent entered the agreement in 2000 under a 25-year contract.
PFI investors maintain that PFI contracts provide a longer-term value for taxpayers’ money. Since these contracts began, PFI investors in Yorkshire and the Humber have made a minimum of £140m in investment dividends (including contracts for schools, social housing, and leisure centres).
It is unclear at this time what will happen to these schools in disrepair when their PFI contracts come to an end – it is possible that many will struggle to pay money owed, which would cause further legal issues down the line, carrying a risk of some schools needing to close.
Across England, around 1% of schools are also suffering from RAAC, with 119 schools needing a complete rebuild or significant refurbishment. A further 110 will need smaller scale work.
