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Why Schools Are Saying No to High-Cost Agencies and Choosing a Mutual Solution Instead?

An image of school children in uniform, wearing red jumpers and running across the playground towards the camera
The education sector is facing a crisis that goes beyond the headlines of funding gaps, recruitment challenges, and staff retention. At the heart of the issue lies a crucial question: Where is your school’s money really going?
As schools struggle with escalating staff absences and long-term vacancies, one group is quietly profiting – commercial supply agencies. Schools across the country report paying 50–75% markups on agency supply staff, often for inconsistent value and limited transparency. And yet, despite budget strain and poor value for money, the cycle continues.
But it doesn’t have to…

Created by Schools, for Schools

Schools Mutual Services (SMS) was established by education leaders who had grown tired of watching precious school funds vanish into commercial profits. They envisioned something better – a not-for-profit, school-owned solution with values at its core.
SMS exists to provide a compliant, ethical, and financially responsible alternative to supply agencies. One that reinvests every possible penny back into education, not shareholder dividends.
What’s the Real Cost of Commercial Supply?
  • Extortionate markups: Recent DfE research highlights how some agencies charge schools nearly double a supply teacher’s pay.
  • Poor value: Schools are paying up to 28% more for roles like Cover Supervisors, with staff earning less.
  • Opaque practices: Agencies often refuse to disclose fees and operating margins. Exit clauses and ‘release fees’ of up to 20% come with no compromise.
This isn’t just unsustainable, it’s unacceptable!

SMS: The Ethical, Transparent Alternative

Here’s what makes SMS different:
  • Owned and run by schools, governed by educational leaders who understand your world
  • Margins capped and costs transparent, always
  • Legally compliant, adhering fully to Public Contract Regulations (PCR 2015) and the forthcoming 2025 National Procurement Policy
And with participation in the National Workforce Services Framework, SMS stands as a beacon for what ethical, sustainable recruitment can look like.

A Smarter Way Forward

Schools deserve better than sky-high fees and unclear contracts. Every pound spent through a profit-driven agency is a pound diverted from pupils and progress.
SMS is more than a supplier, it’s a movement. A commitment to fairness, to community, and to doing things right.
If your school hasn’t yet had the conversation with SMS, now’s the time.
You can contact us here ➡️ CONTACT FORM

With regional offices in Newcastle, Oxford, and Nottingham, SMS works with schools across the whole of the North East, Nottinghamshire, Derbyshire, Leicester, Oxfordshire and Swindon. Each office is embedded within its local education community, working in partnership with school trusts, teaching alliances such as OTSA, and local authorities to deliver tailored supply staffing support across primary and secondary education, whether that is day-to-day supply teaching or long-term placements. From multi academy trusts to community primary and special schools, SMS is helping educational establishments navigate financial pressures with a smarter, more sustainable solution for supply teachers and support staff, that puts pupil outcomes first.

North East Hub

Portland House, Newcastle, NE1 8AL
📞 0191 933 8300
✉️ info@schoolsmutualservices.co.uk

South East Hub

Podium Sandford Gate, Littlemore, Oxford OX4 6LB
📞 01865 597 771
✉️ oxford@schoolsmutualservices.co.uk

East Midlands Hub

16 Commerce Square, Nottingham NG1 1HS
📞 0115 646 6460
✉️ nottingham@schoolsmutualservices.co.uk