Academy trust CEO pay: Government expected to introduce salary cap
1st July, 2026
The Government is expected to announce a significant change to the way CEO pay is regulated within academy trusts.
According to reports, the Department for Education intends to introduce a new framework which would bring academy trust executive pay more closely into line with other parts of the public sector, such as the NHS. The proposals are understood to include:
- A salary cap of approximately £174,000 for Academy Trust chief executives
- A requirement for Department for Education approval for roles above that threshold
- Restrictions on future executive pay increases so that they broadly mirror national teacher pay awards
- Amendments to the Academy Trust Handbook to strengthen oversight of executive remuneration
Although many Academy Trusts already operate well within these levels, the proposals are likely to represent the most significant intervention in Academy executive pay since the academies programme began.
Why is this happening?
Executive remuneration within the academy sector has been under increasing political and public scrutiny for several years. While existing guidance requires Trust Boards to ensure that executive pay is transparent, proportionate, evidence-based and represents value for money, ministers have concluded that the current system has not prevented a relatively small number of exceptionally high salaries.
The Government has repeatedly stated that it wishes to ensure public funds are directed towards frontline education wherever possible, whilst maintaining appropriate remuneration for those leading large and complex organisations.
What should academy trusts do now?
Pending publication of the detailed guidance, Boards of Trustees should consider:
- Reviewing any current or proposed executive remuneration arrangements
- Ensuring that all remuneration decisions are fully documented and supported by robust benchmarking evidence
- Reviewing executive pay policies to ensure they clearly demonstrate value for money and appropriate governance
- Considering whether any planned recruitment exercises or salary reviews may be affected by the proposed changes
- Ensuring that remuneration committees are prepared to respond once the final guidance is published
At the same time, Trust Boards should continue to consider whether executive leaders remain entitled to be enrolled within the TPS, or whether they instead should be enrolled within an LGPS.
If you have any questions regarding any of the above issues raised, please get in touch with our specialist education lawyers.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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