Schools have been informed how much they will receive to cover the financial costs they felt as a result of Liverpool Council’s electricity contract mistakes last year.
It was confirmed last week schools across Liverpool have been hit with an additional bill of £2.3m as a result of the city council’s errors around its energy contract in the spring of 2022. Council leaders were not informed that the electricity provider it was dealing with had withdrawn from the commercial market, leading to the local authority - and other city institutions including schools and the fire service - being placed on a far more expensive contract.
Almost a year on, Cllr Tom Logan, cabinet member for education and skills has confirmed to a select committee schools have been told how they will be compensated for the mix-up ahead of it being made public. Last week, Ian Duncan, interim chief finance officer, said the authority was hopeful a way through had been found after talks with Government.
READ MORE: Four jailed after scrambler bike shooting that terrified parents
Addressing members of the education and skills select committee, Cllr Logan said the council had been working at great length to resolve the issue, adding: “We want to sort this out and make sure schools haven’t lost out financially.” The cabinet member said the local authority “always wanted to do that” and had been working with the Department for Education to devise a legal route.
He added schools would be informed ahead of the cabinet papers going live later this evening and all 130 sites impacted would be contacted via email. Cllr Logan said it was important schools were updated this month as they were due to find out their funding settlements by the end of February.
He said: “Schools will know their position and hopefully this issue will be put to bed. It’s taken a long time, but we’re there.” During a discussion involving the joint mayoral and finance committees last week, Deputy Mayor Cllr Jane Corbett said “lessons had been learned and will continue to be learned” from the blunder, while statutory deputy Cllr Frazer Lake said “measures have been put in place, checks and balances have been put in place” to stop this from happening again.
A cabinet paper ahead of the Liverpool Council executive meeting next week is to be published later today outlining how the schools across the city are being reimbursed. Cllr Alan Gibbons, a former teacher and school governor, has been a constant critic of the council since the electricity contract issue was revealed.
He said he welcomed the progress on the finances and the security it would bring schools.
Receive newsletters with the latest news, sport and what's on updates from the Liverpool ECHO by signing up here
READ NEXT
Drug dealer blows kiss to girlfriend as he's led to the cells
Schoolgirl approached by 'suspicious' man as police hunt for suspect
Nicola Bulley latest updates as hunt for missing mum continues
