Changes to the Academy Trust Handbook 2026

The Department for Education (DfE) published the Academy Trust Handbook 2026 (ATH 2026), which comes into effect on 1 October 2026 - (delayed by one month compared to the traditional September start date to give trusts extra preparation time).

While the core financial framework remains largely consistent, the 2026 edition shifts several previous "best practice" recommendations into mandatory expectations—focusing on inclusion, executive pay, procurement, and financial leadership

Tighter Executive Pay Controls

• Prior Approval Thresholds: From 1 October 2026, trusts must seek advance DfE approval before advertising any new role with remuneration exceeding £174,000 (pro-rata), or performance-related pay above £25,000; and

• Pay Escalation Constraints: Executive pay increases cannot outpace general teacher pay rises without explicit justification and DfE sign-off.

Chief Financial Officer (CFO) Qualifications

• Phased Mandate for Larger Trusts: For trusts with over 3,000 pupils, recruitment processes starting from 1 October 2026 must specify that candidates hold a recognized professional accountancy qualification (e.g., ACCA, ICAEW, CIPFA); and

• From 1 September 2027, appointing a non-qualified CFO will require formal notification and justification sent to the DfE.

Strict Criteria for Severance & Exit Payments

• Litigation Risk Threshold: The DfE clarifies that trusts should not offer non-statutory settlement/severance payments if there is a 50% or greater prospect of successfully defending an employment tribunal claim. Doing so requires prior DfE approval as a contentious transaction; and

• Cap on Settlement Values: Settlements must not exceed what a tribunal would reasonably award.

6. Digital Standards & Multi-Academy Trust (MAT) Transparency

• Digital Infrastructure: Boards are expected to actively monitor progress toward the DfE’s core Digital and Technology Standards (target 2030), treating cyber security as a governance issue; and

• Pooling & Distribution Statements: MATs must now publish a clear summary statement alongside their annual accounts explaining how funding is allocated and distributed across individual academies in the trust.

READ THE HANDBOOK HERE

Key Changes in the 2026 Handbook

Board-Level Inclusion & SEND Responsibilities

• Strategic Oversight: Inclusion is now explicitly framed alongside financial duties. Trusts must adopt a trust-wide strategy to support pupils with SEND, disadvantaged pupils, and children known to social care;

• Designated Lead: Boards are expected to designate a named trustee or establish a dedicated committee responsible for SEND and inclusion oversight; and

• Local Collaboration: Trusts face a stronger expectation to work constructively with local authorities on place planning and local inclusion priorities.

2. Mandatory DfE Procurement Frameworks

The DfE has shifted from recommending its procurement routes to requiring them:

• Management Information Systems (MIS): All trusts must transition their MIS contracts onto the DfE’s MIS Framework by 1 September 2027. Contracts expiring before then can only be extended for up to 12 months as a transitional measure;

• Energy & Agency Staff: Trusts must use DfE-approved energy purchasing routes and the Government Commercial Agency agreement for supply staffing (unless an existing compliant option beats framework rates); and

• Auditable Rationale: Trusts must document and retain evidence of their rationale whenever making procurement decisions.