Schools Face 'Astronomical' Costs as 25-Year Repair Contract Nears Collapse

A recent BBC report revealed that the multi-million-pound contract, signed in 2000, binds 88 schools to a private company responsible for maintaining their facilities. However, as the agreement nears its end in October, schools fear they will be left with a massive backlog of repairs.

A BBC investigation, spanning over a year, has revealed that 42 schools have stopped making payments under the contract. Key findings include:

• 35 schools received legal threats from Stoke-on-Trent City Council in January for withholding payments;

• Schools were warned that funding may not cover all necessary repairs before the contract expires; and

• No compensation has been paid to any of the 88 schools for failures such as delayed maintenance over the past 25 years.

Schools across Stoke-on-Trent are locked in an escalating dispute over building repairs, with some reporting they have struggled for years to get essential work completed—all while paying "astronomical" fees under a long-term Private Finance Initiative (PFI) contract.

The deal was struck between Stoke-on-Trent City Council and Transform Schools (Stoke) Limited (TSSL), which subcontracts maintenance work to multinational firm Equans. It is the largest PFI contract for schools in England and one of the first set to expire, potentially setting a precedent for nearly 600 similar agreements covering schools and hospitals nationwide.

While the council insists its priority is to ensure buildings are handed over "safe, warm, and dry," the schools involved report ongoing structural issues, heating failures, and a lack of accountability from the private firms.

When PFI maintenance contracts fail, schools are supposed to withhold payments from private firms as leverage. However, the BBC found that Stoke-on-Trent City Council has done little to enforce this mechanism.

• Over 25 years, only £416,000 in deductions have been declared—a fraction of the total fees paid;

• No compensation has ever been passed on to schools for contract failures; and

• The council now admits it is "working through" the payments and has promised to distribute them before October.

PFI expert Ian Dennison, whose firm Inscyte advises schools nationwide, called the level of withheld payments in Stoke "shockingly low." He warned that many repairs might not be completed in time.

"We’re facing a serious problem. The work required is extensive, and with the contract winding down, there’s little incentive for the private company to invest in repairs."

The PFI model, widely used under Tony Blair’s Labour government, allowed public buildings to be funded without direct government borrowing. While many deals involved new school buildings, Stoke’s contract primarily covered maintenance.

In 2018, the Conservative government scrapped the PFI model, citing poor value for taxpayers. However, nearly 570 contracts remain active, many nearing their expiration dates.

In 2021 and 2024, official health checks on Stoke’s PFI schools rated them "amber/red"—the second-worst category—indicating "major additional work needed."

A Contract Running Out of Time

The Financial Burden

At Our Lady and St Benedict Primary, where over half the children come from low-income families, hazardous conditions have persisted for years. During a BBC visit last month, part of a classroom was cordoned off with hazard tape due to falling plaster, a hole in the ceiling, and damp walls.

Headteacher Sarah Clowes said her school has identified nearly 300 outstanding issues, with heating failures among the most pressing concerns.

• A new boiler, installed last summer under the contract, failed at the first cold snap, forcing the youngest pupils to stay home for three days;

• When heating broke down again in January, the entire school had to close; and

• After the BBC contacted Equans, repairs began—but the heating still does not function properly in every classroom.

At St Margaret Ward Catholic Academy, damp-stained exterior walls are crumbling, and water leaks from the roof to the ground floor. The school has struggled for months to get three critical water pumps replaced, leaving only one functional. If it fails, the school will be forced to close due to lack of clean water.

Schools Left in Disrepair

Ian Beardmore, chief executive of Newman Catholic Collegiate—which oversees seven schools under the PFI contract—described the fees as "astronomical."

• His schools have paid £400 per year to maintain a single plug socket.

• When they requested its removal, they were charged £500.

• An estimated £1.8 million in repairs is needed across the seven schools he oversees.

"The money isn't there, the will to fix things isn't there, and time is running out," he said.

Accountability Concerns

A National Issue

What Happens Next?

Stoke-on-Trent City Council insists it will not sign off on the contract’s completion unless agreed standards are met. However, with repair funds running low and a tight deadline, the outlook remains uncertain.

Equans claims it has completed an average of 28,000 repairs per year, with 93% of scheduled tasks finished on time. It says work is planned for the Easter break.

Transform Schools (Stoke) Limited insists it has maintained buildings "in accordance with the contract" and is unaware of any widespread disputes.

Yet, with millions in repairs still outstanding and only months left before the contract ends, schools fear they will be left footing the bill for work that should have been completed years ago.

Handsam Resources

PREMISES AND BUILDINGS GUIDANCE

CONTRACTORS GUIDANCE

Example Managing Contractors Policy