Academy Trust Handbook 2025: Summary for school leaders and trustees

Understanding the updates and changes in the 2025 Academy Trust Handbook

The Department for Education (DfE) has released the 2025 Academy Trust Handbook, effective from 1 September 2025, introducing several updates aimed at strengthening governance, financial oversight, and strategic planning across academy trusts in England. This article outlines the major changes and how they compare with the 2024 edition.

Strategic and governance enhancements

Key updates (2025):

• Trusts must work towards meeting six core digital and technology standards by 2030 (para 2.8). Supporting the DfE’s current focus on tackling fraud and cyber crime as Academy Trusts you handle sensitive pupil, staff, and financial data. Meeting digital standards helps protect against cyber threats, including ransomware attacks.
• Enhanced guidance on estates management to ensure safe and well-maintained environments (para 6.18). Through strategic estate planning, health and safety compliance, monitoring of estates conditions and maintenance needs, sustainability and energy efficiency and compliance an oversight
• Clarified duties of the accounting officer, including responsibilities for raising concerns (para 1.15).

Financial oversight and procurement

Key updates (2025):

• Expanded procurement guidance to ensure value for money and compliance (para 6.11), by placing an emphasis on value for money and how trusts are achieving value in all procurement activities, re-enforcing the use of DfE procurement tools and compliance with public procurement regulations, ensuring board oversight and delegation, while implementing robust procedures to manage conflict of interests and prevent fraud.
• Clearer expectations for executive pay decisions and board accountability (para 2.7), to ensure trust boards are able to justify their decisions and evidence their rationale. Through this the DfE note that decision must be robustly challenged and not just accepted without scrutiny.

Internal scrutiny and audit

Key updates (2025):

• Income thresholds for internal scrutiny now based on last audited accounts (para 3.23).

Delegated authorities and risk management

Key Updates (2025):

• Clarified how cost can make a transaction ‘repercussive’ (para 5.18), by expanding the definition and providing practical guidance that if the scale of expenditure is significant enough to attract attention or scrutiny it can influence sector-wide expectations and impact public perceptions and trusts should documenting and their assessment and where necessary seeking prior approval from the DfE
• Prohibition on paying cyber ransomware demands (para 6.20).

Regulatory oversight and intervention

Key updates (2025):

• Educational performance removed as a reason for issuing a Notice to Improve (para 6.23).
• DfE may recover funds in cases of fraud or irregularity (para 6.24).

Sustainability and climate action

Key updates (2025):

• Trusts encouraged to have a climate action plan and appoint a sustainability lead by 2025 (para 6.19). Meaning that in line with the DfE own strategic goals which outlines a vision to embed sustainability across the education system within the UK, trusts will be expected to take proactive and structured steps to reduce their environmental impact. While this is not a must this year it is a strong policy expectation and by starting early trust may be able gain a competitive advantage when implementing their own strategies.

Conclusion

The 2025 Academy Trust Handbook builds on the 2024 framework with a stronger emphasis on digital transformation, sustainability, and clarified financial governance. Trusts are encouraged to not only comply but also use the handbook as a tool for continuous improvement. These changes reflect the DfE’s evolving priorities in ensuring that academy trusts are well-governed, financially sound, and future-ready.

As a team Kreston Reeves has embedded Environmental, Social, and Governance (ESG) principles at the heart of its operations and our ESG team play a pivotal role in helping both the firm and our clients navigate this evolving landscape of sustainability and ethical governance. If your trust would benefit from an introduction to our team please contact us today.