Effective from 1 September 2025, the 2025 Academy Trust Handbook (Handbook) released by the Department of Education (DfE) builds on the 2024 regime to strengthen governance, strategy and finances across academy trusts throughout United Kingdom.
The Handbook introduces several key changes, which will impact academy trusts across a variety of relevant areas. This article demonstrates at a high-level the need to know key changes, and wider implications for academy trusts.
Schedule of Musts
A key presentational change to the Handbook is the introduction of the Schedule of Musts, a collation of all obligations academy trusts must adhere to, in a single excel spreadsheet.
Whilst the DfE acknowledge that the Schedule is an abbreviation of the requirements, and that it cannot be solely relied on, it is set out as a functional checklist, and can be utilised by academy trusts to hold themselves accountable, and ensure full compliance with the Handbook.
Defensible executive pay
In a move to make execution remuneration more “transparent, proportionate and defensible”, the Handbook now offers further guidance to achieve this goal.
Boards are now required to document the approach on executive remuneration in “an agreed pay policy”, which demonstrates justifiable pay, and requires approval from the Board.
The new guidance states that decisions regarding executive remuneration may be challenged by the DfE, which varies from previous guidance that enabled challenges by the predecessor ESFA.
2030 technology target
Academy trusts will need to work towards meeting a range of core digital and cybersecurity standards by 2030. These standards relate to broadband, network switching, wireless networks, cybersecurity, filtering and monitoring, and digital leadership.
These core standards intend to provide academies with a roadmap to digital resilience, and allow for technology integration, including in classrooms and across administration.
Scope of NtI
The DfE and ESFA have the power to issue notices to improve (NtI) where academy trusts fail to meet their obligations, or demonstrate flaws in governance, management or financial practices.
The Handbook reduces the scope of NtIs, no longer allowing them to be served on governance grounds for a lack of skills, knowledge and experience to exercise effective oversight of educational performance.
This means NtIs can only be served on academy trusts where the board is not properly constituted, there is a failure to safeguard, or where the school’s estate is not appropriately managed.
Repercussive payments
Academy trusts must obtain DfE approval before making any novel, contentious and repercussive payments. This is because academy trusts are classified as part of the central government sector, and are therefore required to follow the financial control framework, Managing Public Money.
The Handbook broadens the definition of “Repercussive” to include payments that “cause additional costs to arise for other parts of government”.
This change ensures the DfE are consulted prior to any payments that may have implications for other parts of government, and is believed to have been instigated by an academy trust’s decision to offer teachers the ability to receive less general pension for a higher salary, which impacts government revenue.
Estate management
The Handbook references the updated School Estate Management Standards, a set of non-statutory standards that set out the estates management regime.
Importantly, those responsible for running academy trusts have an obligation to keep the trusts’ estates safe and well-maintained. Whilst the Handbook does not set out explicitly how to do this, academy trusts can turn to the School Estate Management Standards, which provides guidance and a set list of expectations to assist in achieving a safe working environment for pupils.
Ransom demands
New guidance dictates that academy trusts are no longer allowed to pay ransomware demands, which varies from previous guidance, which enabled it subject to ESFA approval. This is because such payments are not guaranteed to restore access, and at the same time, incentivise the perpetrators to repeat offend.
Academy trusts should ensure that they have a robust incident response policy in place to deal with incidents, including ransom demands, and should ensure all staff are trained and across the relevant processes and procedures.
Next steps
If you require assistance to update policies, undertake governance reviews, or require advice regarding general compliance with the Handbook, please contact our school support team at schoolsupport@wslaw.co.uk.