Leasing for Schools – DfE Approved Lease Agreements
ICT leasing for schools has changed and is now a practical option for schools, academies and MATs. Spreading lease payments over 3 to 5 years is a viable option for many schools and a cost-effective way to budget, particularly for a 5 to 7-year ICT improvement strategy.
There are two DfE approved leasing options. Both can be suitable for schools and multi-academy trusts, depending on your requirements:
- Finance Lease – Pay higher monthly payments, and at the end of the lease, a small payment to keep the equipment (typically around £200). No balloon payment is required.
- Operating Lease – Lower monthly payments, and at the end of the lease agreement, the equipment is returned to the leasing company. The school would normally take out a new lease with new equipment.
Either way, it is more expensive than purchasing the hardware or services outright, but it can still offer good value by helping schools spread costs and plan improvements across a fixed budget period.
The process is simple. We provide a quote (laptops, iPads, CCTV, etc.), and our DfE approved partner will talk through the available leasing options. Completely no obligation.
Free Quote for Your School - Fast Reply
What is ICT Leasing?
ICT leasing is a way to budget and spread payments rather than pay a high upfront cost for school computers and ICT equipment. It can be used for a whole network upgrade, including installation charges and licensing fees.
What an ICT leasing agreement involves:
- A fixed-term agreement, from 2 to 7 years, after which the equipment is returned to the leasing company (operating lease), or ownership is transferred from the leasing company to the school (finance lease).
- An annual payment is made to the leasing company.
- A DfE approved finance lease is transparent with clear terms, fixed costs and a small final payment (around £200) to transfer title to the school, subject to the lease agreement.
- A lease term can sometimes be extended. However, it’s usually beneficial for both parties to renew. For example, if you have had laptops for five years, it will be time to renew them anyway. Plenty of affordable laptops for education are available, and laptop finance is a much better option than buying refurbished computer equipment.
Classroom365 has partnered with a recommended DfE approved education leasing company for many years.
Our View on Computer Leasing for Schools
Classroom365 is an independent Managed IT Services provider serving the education sector, and we are simply offering advice here. Computer leasing is only suitable or desirable for some schools.
The main advantage is that a school can budget annually and know exactly how much it will spend on its new ICT equipment under the lease. The obvious disadvantage is that it will cost more in the long run than if the hardware and other costs were purchased outright at the project’s outset.
With an operating lease, you do not own the equipment at the end of the ICT lease agreement – it is returned to the leasing company, and they are often for 3 years only. You will then have to either take out a new lease or purchase more equipment if you are in a financial position to do so. New equipment means more installation costs.
For this reason, for hardware with a longer lifespan, such as server infrastructure, Wi-Fi, and interactive whiteboards, we recommend a finance lease. For items such as Chromebooks, and possibly laptops and tablets, an operating lease “may” be more appropriate if you intend to replace after 3 years.
If you would like some advice on school leasing, please get in touch. Alternatively, the DfE provides guidance on available buying options.
What’s Included with an ICT Lease?
A school leasing agreement can be for anything, including the following:
- Computers, laptops and all-in-one desktops.
- Tablets, classroom Chromebooks and iPad leasing for schools. There are significant educational discounts on iPads for schools, and leasing can be an excellent option for staggering payments.
- Telephone systems. The BT PSTN switch-off is happening in January 2027, and schools must be prepared. This means upgrading your analogue telephone system to a new digital telephony system. If you need clarification on what this means, please get in touch with us, as we are heavily involved and can help.
- Photocopier leases for schools.
- Furniture and non-ICT hardware.
- New building and refurbishment projects.
- Touch screen whiteboards, including SMART Boards and Clevertouch screens.
- School security systems or CCTV camera upgrade projects.
- Many ICT technical services, such as licensing and software, can be included with a hardware purchase.
There’s much more, of course, and it’s always worth finding out the leasing cost before committing to a big spend.
Mark Friend, BSc (Hons), is a Company Director at Classroom365 and has worked in technology for nearly 30 years. His IT career started with Rothschild Bank in Sydney, Australia, before working as a Global VPN Project Manager for the British Council. Mark has 20 years of experience in the UK education sector, helping schools integrate the latest tech into their curriculum and ICT vision.