What’s new in the Academy Trust Handbook 2026?

The new handbook introduces a number of significant changes and represents one of the most important updates in recent years, with a stronger emphasis on financial transparency, value for money, procurement, executive accountability and strategic governance.

An outline of the changes are:

Roles and responsibilities

• Explaining trusts’ responsibilities for inclusion and collaboration, including their strategic approach, oversight and partnership with other agencies
• Reminding trusts about working towards meeting the digital and technology standards by 2030
• Strengthening the position of trustee’s financial knowledge and expertise
• Strengthening the position of CFOs in larger trusts holding a relevant accountancy qualification

Main financial requirements

• Strengthening the position on integrated curriculum and financial planning in schools
• Strengthening the trust’s obligation for reporting on its ability to operate as a going concern
• Explaining that trusts must consider DfE opportunities when making purchasing decisions
• Confirming that trusts must use the Government Commercial Agency agreement for supply staffing requirements and for energy, trusts must use either DfE Energy for Schools or a DfE approved energy deal
• Explaining that trusts must use the DfE Management Information System framework and action to take with existing contracts
• Confirming arrangements for executive pay and senior pay controls
• Updating the permissive position for electric vehicle salary sacrifice schemes, which are now allowed
• Explaining that prior DfE approval is needed before offering an alternative pension scheme

Delegated authorities

• Explaining what trusts need to consider and do when dealing with severance payments
• Confirming that multi-academy trusts must publish on their website how funds are distributed across their schools

The Regulator and intervention

• Explaining what action, the Secretary of State may take where a trust is in breach of duties imposed under its funding agreement

Roles and responsibilities

Inclusion and community

The new handbook introduces a new responsibility for Trusts with regards to inclusion and community. The guidance states that Trusts must comply with their legal duties, including those relating to safeguarding, SEND and admissions.

Trusts should ensure that inclusion is embedded across all aspects of their provision. The handbook defines inclusion as meaning that all pupils, particularly those with SEND, those who are disadvantaged, and those known to social care, are:

• Identified early where they have additional needs
• Able to access high-quality teaching and appropriate support
• Supported to participate fully in school life

Trusts should establish and implement a clear, trust-wide approach to inclusion, including:

• Consistent approaches to identifying and meeting need
• Effective deployment of expertise and resources across schools
• Systems to monitor access, participation and outcomes for relevant groups of pupils
• Arrangements to evaluate the impact of provision and improve practice

Trusts should designate a trustee, or establish a committee, to support oversight of inclusion, including SEND. The handbook explains rules for Trusts with regards to their legal duties to cooperate with local authorities and other agencies.  This includes:

• Engaging in a timely and transparent manner with requests to develop or adapt provision, with the aim of identifying and implementing appropriate solutions
• Working in partnership with the local authority and system partners to support local sufficiency and inclusion priorities
• Giving due consideration to agreed local needs, including place planning pressures and inclusion strategies
• Supporting local area partnerships and, where relevant, contributing to the collective delivery of the Experts at Hand offer as part of a coherent local system

Digital and technology standards

Unlike the 2025 handbook which states that Trusts should have an understanding of the extent to which they are meeting the DfE’s digital and technology standards, the 2026 handbook states that Trusts should be working towards meeting the standards. The six core standards which trusts are expected to meet by 2030 remain unchanged. These are:

• Broadband internet
• Network switching
• Wireless network
• Cyber security
• Filtering and monitoring
• Digital leadership and governance

The 2026 handbook additionally states that it is expected that Trusts are already meeting the filtering and monitoring standard as set out in the statutory guidance Keeping children safe in education (KCSIE). You can read our summary of the key changes to KCSIE guidance in 2026 here.

Strengthening the position of trustee’s financial knowledge and expertise

The 2026 handbook expands on the skills and experience required by members of the Board of Trustees. The new handbook states that Boards should address appropriate financial training covering financial management, control, monitoring and reporting, for trustees and in particular, for finance committee members and audit and risk committee members.

Strengthening the position of CFOs in larger trusts holding a relevant accountancy qualification

The new handbook details additional skills and experience which a CFO should have in a large trust where there are over 3,000 pupils. The handbook explains that a CFO should hold a professional accountancy qualification from a professional body such as the ICAEW, ACCA, CIMA, CIPFA or equivalent.

• For trusts with over 3,000 pupils any CFO recruitment exercise commencing on or after 1 October 2026 should specify that the person should be a qualified accountant, and a member of the relevant professional accountancy body and/or hold the CIPFA level 7 qualification
• If a trust is planning to appoint a new CFO, who is not a qualified accountant or holds the CIPFA level 7 qualification, DfE must be informed in advance including an explanation of why the trust is not appointing a qualified accountant or holder of the CIPFA level 7 qualification

Stay up to date with:

• Trending Topics
• Latest Insights
• Upcoming Events
• Company Updates

Follow us on LinkedIn

Take Me There

Main financial requirements

Strengthening the position on using integrated curriculum and financial planning in schools

The new handbook strengthens the position on using integrated curriculum and financial planning in schools. The new guidance states that boards should take an integrated approach to curriculum and financial planning in their schools whereas the 2025 guidance only encouraged this.

Strengthening the trust’s obligation for reporting the position on its ability to operate as a going concern

The new handbook strengthens a Trust’s obligation for reporting the position on its ability to operate as a going concern. The new guidance confirms that an accounting officer must notify the Board where it is identified that the Trust’s ability to operate as a going concern is at risk. Trustees must take ownership and necessary action, including notifying the DfE.

Trusts must consider DfE opportunities when making purchasing decisions

With regards to procurement and spending decisions the new guidance states that Trusts must consider DfE opportunities when making purchasing decisions for goods and services and record their decision-making.

Trusts must use the Government Commercial Agency agreement for supply staffing requirements and for energy, trusts must use either DfE Energy for Schools or a DfE approved energy deal

The new handbook also confirms that trusts use the Government Commercial Agency, Supply Teachers and Education Recruitment for their supply staffing requirements unless they have an alternative compliant agreement with rates which do not exceed those available through the framework.

Furthermore, the guidance explains that Trusts must use the DfE Energy for Schools service or a DfE approved Energy deal as shown under Energy on Get Help Buying for Schools unless an alternative agreement with comparable pricing has been sourced. This will apply when energy contracts are renewed.

Trusts must use the DfE Management Information System framework

Another change in the new handbook is that Trusts must now ensure that all Management Information Systems (MIS) contracts are aligned with DfE’s MIS framework by September 2027. The guidance explains that:

• Where a contract expires before 1 September 2027, any contract extension or replacement must be for no more than 12 months, and act as a transitional arrangement ahead of framework procurement
• Where a contract extends beyond 1 September 2027, trusts must not use extension options that delay transition
• Trusts must use the DfE MIS framework when awarding their next full-term MIS contract

If a trust cannot reasonably award a contract of 12 months or less, it may proceed only where the supplier agrees to the DfE’s latest MIS contractual principles, available in Get help buying for schools

Arrangements for executive pay and senior pay controls

The new handbook confirms arrangements for executive pay and senior pay controls. With regards to setting executive pay, the handbook states that a Board of Trustees must ensure its decisions about executive pay (including salary and other benefits) follow a robust evidence-based process and are a reasonable and defensible reflection of the individual’s role and responsibilities. No individual can be involved in deciding their own remuneration. Decisions about executive pay may be challenged by DfE.

The Board must discharge its responsibilities effectively, ensuring its approach to, and levels of, pay and benefits is transparent, proportionate and defensible. This must be documented in an agreed pay policy, which sets out the process for determining executive pay and includes:

• Independent scrutiny by the board
• Robust decision-making that demonstrates justifiable pay
• Proportionality – that pay and benefits represent good value for money and are defensible relative to the public sector market
• Documented decision-making with rationale and approval by the board

Executive remuneration must not increase at a faster rate than that of the academy trust’s teachers, unless there is a clear justification for it to do so. Where the academy trust considers there is a justification, it must seek approval in advance from the DfE.

With regards to Senior pay controls, the new handbook confirms that from 1 October 2026, for new appointments within academy trusts where remuneration exceeds £174,000, or the pro rata equivalent for part-time staff, or performance-related pay is above £25,000, approval from the DfE must be obtained before the post is advertised.

Electric vehicle salary sacrifice schemes

The new handbook updates the permissive position for electric vehicle salary sacrifice (EVSS) schemes. The 2025 handbook stated that academy trusts needed DfE approval for these schemes, these schemes are now allowed without prior approval from the DfE provided that:

• The Trust has comprehensive mitigations in place to ensure no cost or liability falls on the Trust if an employee does not fulfil their contractual obligations with the scheme provider
• The Trust is not under a Notice to improve (NtI)

The handbook also states that Trusts choosing to offer an EVSS scheme must clearly document their comprehensive mitigations.

Academy trusts considering offering an EVSS scheme to their staff must follow the Electric vehicle salary sacrifice guidance

Prior DfE approval is needed before offering an alternative pension scheme

The final change detailed in the new handbook with regards to the main financial requirements is that with effect from 1 October 2026, if a Trust is proposing to offer any alternative to the Teachers’ Pension Scheme (TPS) or Local Government Pension Scheme (LGPS), it must approach the DfE to seek approval early in the planning stage and before any proposed changes are communicated to staff. Alternatives must be approved by the DfE before changes are made.

Delegated authorities

Severance payments

The new handbook explains what Trusts need to consider when dealing with severance payments. The handbook states that staff severance payments should not be made where they could be seen as a reward for failure, such as gross misconduct or poor performance. The only acceptable rationale in the case of gross misconduct would be where legal advice is that the claimant is likely to succeed (greater than 50% prospect of success, based on the balance of probabilities test) in an employment tribunal because of employment law procedural errors. In the case of poor performance, trusts may take into account the likely time, cost and management resource required to complete a formal capability process.

The new handbook states that where the Trust is considering a staff severance payment including a non-statutory or non-contractual element of £50,000 or more, (gross, before income tax or other deductions) then DfE’s prior approval must be obtained before making any offer to staff. Trusts should demonstrate value for money by applying the same scrutiny to a payment under £50,000 as those over this limit and have a justified business case.

Trusts must consider before making a binding commitment that the proposed payment is in the Trust’s interests.  The handbook states that Trusts must clearly record and retain evidence of the approval process, including any legal advice of the likelihood of successfully defending a claim, the reasons for the decision, the supporting evidence and how value for money is ensured.

The handbook additionally states that Trusts must obtain prior DfE approval before making a special staff severance payment where any of the following apply:

• An exit package of £100,000 or above includes a special severance payment
• The employee earns over £174,000
• A payment is novel, contentious or repercussive

The 2026 handbook guidance with regards to the use of confidentiality clauses remains the same as the 2025 handbook.

MATs must publish on their website how funds are distributed across their schools

The new handbook confirms that MATs must publish on their website a summary statement (by 31 January) accompanying their annual accounts, outlining how funds are distributed across their schools. Information should match that set out in the annual accounts notes (Disclosure of central services and Funds).

Intervention

With regards to the regulator and intervention, the new handbook goes into further detail and explains what action the Secretary of State may take where a Trust is in breach of duties imposed under its funding agreement. The guidance states where a Trust is in breach of any duty imposed under its funding agreement, the Secretary of State may issue a direction to the Trust specifying the required action to rectify the situation and the required timeframe. The Trust must comply with the direction. If a Trust does not comply with the direction, the Secretary of State may seek enforcement by a court order.

If you would like any support, on any aspect of the Academy Trust Handbook 2026, academy governance or regulatory compliance, please do not hesitate to contact our Education team.