The Educator Magazine U.K. May-August 2026 issue. - Magazine - Page 51
On 25 March, the government released some more details with
regards to the methodology for this funding. The grant comes
in for the financial year 2026 to 2027 and the government will
confirm final school-level allocations in May, with academy trusts
receiving their allocations in early July. The release also includes
the base rates and per pupil rates per setting, and academies
should now be reviewing this and looking at what this means for
their budget and how they can use that funding for the benefit of
the most vulnerable children. Schools will be expected to publish
an inclusion strategy by 31 December 2026, so should start
thinking about that now, as well as the additional resources they
will need to carry out their plan.
Rising workforce costs
For most academy trusts, the main area of spending is workforce
costs, and the report shows that around 76% of academy income
is directed towards this. Recent pay and tax changes have seen
costs in this area rise and, although investment in team members
is essential for educational outcomes, this has led to greater
pressures when planning finances.
Executive pay is a tricky area to comment on. It certainly hits
the headlines and attracts scrutiny when CEO pay in the largest
trusts exceeds significant thresholds, but fewer roles bear the
responsibility of the decisions made at trust level and therefore,
in most cases, per pupil cost is lower and this should arguably
be the better measure. Trusts should be benchmarking their
leadership pay, ensuring they are comparing like with like in all
areas when making pay decisions, as well as considering
experience and added value.
To accommodate rising wage costs, there is a need for flexibility
and cost-cutting in other budgets to allow academy trusts to
adapt. For example, school finance professionals and the board
of trustees should review current suppliers to ensure they’re
still offering competitive pricing, as there may be cheaper
alternatives available.
What’s more, individual academies should consider succession
planning - do you need to automatically replace people when
they leave or retire? Or can you consider cross-skilling team
members to ensure operational continuity at a reduced cost?
Any savings you can make to allow for healthier reserves for
wage costs will bring benefits the next time the inevitable wage
rises come around.
The report makes it clear that, while stronger financial headlines
are a positive step forward, confidence will depend on more than
one year of improved performance. With pressures around
funding, reserve levels, SEND provision and workforce costs
continuing, medium and long-term planning remains essential.
Duncan & Toplis provides accounting services specifically
designed to support academies, including financial
benchmarking, internal and external auditing, and payroll.
To find out more, visit www.duncantoplis.co.uk.
