The Department for Education (DfE) has confirmed that from 1 April 2024, a new international financial reporting standard (IFRS 16 leases) has been introduced. This will change the way that local authorities recognise leases entered into by their maintained schools – this includes leases for LED lighting.
IFRS 16 leases will end the distinction between ‘operating’ and ‘finance leases’ for accounting purposes. Under the Education Act 2002, all leases will be classed as borrowing and will require the Secretary of State for Education’s consent.
Which leased assets require consent?
Governing bodies are no longer required to make a specific request for consent where a lease falls under the general consent granted by the Secretary of State for Education. The types of assets granted general consent are listed in ‘The IFRS16 Maintained Schools Finance Lease Class Consent 2024’ general consent documents.
This means any leased assets not included in the document will need to be submitted to the Secretary of State for Education for consent. These may include leases relating to land and buildings, further guidance on land disposals is available.
How do these changes impact LED lighting upgrades in schools?
Looking specifically at leases related to LED lighting, (for example lightbulbs, control mechanisms and control panels), consent is granted where the product has been sourced with support from the Department for Education through Get Help Buying for Schools or from a recommended route on the Government’s Find a Framework website. This online resource helps schools to find ways to buy goods or services, approved by DfE; get value for money; and comply with the relevant procurement regulations.
Energys is an approved LED lighting supplier on the following frameworks:
- EverythingFM
- Lexica LED Lighting Framework
- Lexica Net Zero Carbon Delivery Framework
- Laser LED Lighting Framework
- YPO Public Sector Procurement
- Fusion 21 Energy Efficiency Framework
- Decarbonisation Partnerships Framework
You can view more information on the changes on the Department for Education’s website.
