Key changes academy trusts should know.
The Department for Education (DfE) has officially announced the key changes to be included in the 2026 Academy Trust Handbook (ATH), introducing several important updates to the financial, governance and operational requirements for academy trusts across England.
This year’s handbook update places a particular focus on financial transparency, accountability, governance standards, procurement, and inclusion, signalling the government’s continued drive to strengthen oversight across the academy sector. The implementation date has been pushed back to 1 October 2026 recognising the practical difficulties for trusts to implement the changes by 1 September 2026 when trusts are about to break for summer.
Here is a closer look at the key changes and what they could mean for you.
Greater transparency around funding distribution
Perhaps the most significant change is the introduction of a new annual financial reporting requirement.
Academy trusts will now need to publish a summary statement alongside their annual accounts on trust websites by 31st January, clearly outlining how funding is allocated across the schools within their trust.
The requirement aims to provide greater transparency for stakeholders, helping parents, governors, staff and communities better understand how resources are distributed and utilised. Trusts will also be expected to demonstrate expenditure at individual academy level, creating a clearer picture of how funding decisions support educational outcomes.
Higher expectations for Chief Financial Officers
The updated guidance strengthens expectations around the qualifications held by Chief Financial Officers (CFOs) in larger academy trusts.
Trusts with more than 3,000 pupils are now expected to recruit CFOs who hold recognised professional accountancy qualifications or equivalent credentials, such as the CIPFA Level 7 qualification. From September 2027, these expectations become mandatory recruitment criteria. If a trust chooses to appoint someone who does not meet the specified standards, the DfE must be informed and provided with a clear justification for the appointment.
The move aims to ensure that larger organisations have appropriately qualified financial leadership in place to manage increasingly complex budgets and compliance requirements.
Oversight of pension schemes
Under new, stricter controls around employee pensions, any trust considering an alternative to the Teachers’ Pension Scheme (TPS) or Local Government Pension Scheme (LGPS) must now engage with the DfE at an early stage. Approval will be required before proposals are shared with employees or any changes are implemented.
This change reflects the government’s intention to maintain oversight of pension arrangements that could have long-term financial and workforce implications.
Increased focus on financial skills within governance
Going forward, trustees should possess sufficient financial knowledge to challenge and support executive leaders effectively. This includes appropriate training in areas such as financial management, risk oversight, internal controls and financial reporting. Particular emphasis is placed on members serving on finance, audit and risk committees, reinforcing the importance of informed financial scrutiny at board level.
Tighter controls on executive pay
Trusts will now need official approval before advertising leadership positions offering remuneration above £174,000, including equivalent part-time roles. Similar approval requirements apply where performance-related payments exceed £25,000.
In addition, trusts wishing to increase executive pay at a faster rate than teachers’ pay will need to demonstrate a clear justification and obtain approval before proceeding.
New expectations around accountability and reporting
The revised guidance places greater emphasis on openness between accounting officers and governing boards.
Trust CEOs and accounting officers are expected to maintain transparency when discussing financial management, reporting, assurance arrangements and any potential irregularities with trustees. Boards should be informed immediately if there are concerns about the trust’s financial sustainability or its ability to continue operating effectively.
Procurement and value for money requirements
The government continues to encourage trusts to maximise value through national procurement arrangements. When existing contracts reach renewal, trusts are expected to use the DfE’s approved energy purchasing arrangements unless they can demonstrate that an alternative provider offers comparable value. The same principle applies to supply staff and recruitment procurement.
For trust leaders, this will place an even greater focus on procurement governance and supplier benchmarking.
New expectations for MIS procurement
By September 2027, trusts will need to ensure future Management Information System (MIS) contracts align with the DfE’s forthcoming MIS procurement framework. Where contracts expire before then, any interim extensions or replacement agreements should generally be limited to 12 months to support transition onto the new framework.
Emphasis on inclusion
In addition, the updated guidance also reinforces expectations around inclusion and support for pupils with additional needs. Trusts are expected to embed inclusion throughout their strategy and operations, ensuring all pupils, particularly those with Special Educational Needs and Disabilities (SEND) and disadvantaged learners, can access appropriate support and fully participate in school life.
Boards are encouraged to designate a trustee or establish a dedicated committee with responsibility for overseeing inclusion and SEND provision across the trust.
