Academy trust handbook 2026: what trustees and CFOs must know

Summary of the key changes for trustees, CFOs and school leaders

The Department for Education (DfE) has published the Academy Trust Handbook 2026, which comes into effect on 1 October 2026.

The handbook sets out the financial governance, accountability and management requirements that academy trusts must follow, alongside guidance on good practice. While many of the changes build on existing expectations, this year’s update introduces a number of important developments that trustees, CFOs and senior leaders should review ahead of the new academic year.

As the autumn term will already be underway before the handbook takes effect, trusts may wish to work towards compliance from the start of the new school year rather than waiting until 1 October.

At a glance: what’s genuinely new in the Academy Trust Handbook 2026?

New requirements

• DfE approval for certain executive appointments and pay awards
• Mandatory procurement requirements covering supply staffing, energy and management information systems
• Publication of GAG pooling statements by multi-academy trusts
• DfE approval before introducing alternative pension arrangements
• A new Inclusion and Community section

Stronger expectations

• Trustee financial expertise and training
• Professional qualifications for CFOs in larger trusts
• Oversight of financial sustainability and going concern risks
• Use of integrated curriculum and financial planning

Clarifications and additional guidance

• Severance payments and confidentiality agreements
• Secretary of State intervention powers
• Electric vehicle salary sacrifice schemes

1. Procurement rules become more prescriptive

One of the most significant developments in the 2026 handbook is a stronger emphasis on the use of DfE-approved procurement arrangements.

NEW REQUIREMENT: Supply staffing and energy procurement

Trusts must use the Government Commercial Agency agreement for supply teachers and education recruitment unless they can demonstrate a compliant alternative arrangement. Similarly, trusts must use DfE Energy for Schools or a DfE-approved energy deal when contracts are renewed unless they can demonstrate comparable value elsewhere.

NEW REQUIREMENT: Management Information Systems (MIS)

Trusts must align their MIS arrangements with the DfE’s MIS framework by September 2027. Where existing contracts expire before then, any extensions or replacements should be limited to short transitional arrangements before moving onto the framework.

What this means

Trusts should review current procurement arrangements and identify any supply staffing, energy or MIS contracts due for renewal over the next 12 to 18 months.

Trustees should now be asking:

• Are our procurement arrangements compliant with the new requirements?
• Are any key contracts due for renewal before September 2027?
• Do we have sufficient evidence to support any alternative procurement arrangements?

2. Greater oversight of executive pay

The DfE has introduced additional controls around executive and senior pay.

NEW REQUIREMENT: DfE approval for senior appointments</h3

From 1 October 2026, trusts must obtain DfE approval before advertising a new appointment where remuneration exceeds £174,000 (or the pro-rata equivalent for part-time roles) or where performance-related pay exceeds £25,000.

NEW REQUIREMENT: Restrictions on executive pay increases

Executive pay and benefits must not increase at a faster rate than those awarded to teachers unless there is a clear justification. In such circumstances, trusts must seek DfE approval before proceeding.

What this means

Trusts may need to build additional time into senior recruitment exercises and review executive remuneration policies ahead of future pay reviews.

Trustees should now be asking:

• Does our executive pay policy require updating?
• Are any planned appointments likely to exceed the new thresholds?
• Have we factored additional approval time into recruitment plans?

3. Stronger expectations around financial expertise and governance

The 2026 handbook continues the trend towards strengthening financial governance and accountability.

STRONGER EXPECTATION: Trustee financial expertise

Trustees, particularly those serving on finance, audit and risk committees, should receive appropriate training covering financial management, controls, monitoring and reporting.

STRONGER EXPECTATION: CFO qualifications

For trusts with more than 3,000 pupils, CFOs should hold a professional accountancy qualification or equivalent.

Recruitment exercises beginning on or after 1 October 2026 should specify that applicants are qualified accountants, members of a recognised professional accountancy body and/or hold the CIPFA Level 7 qualification.

From September 2027, trusts intending to appoint a CFO who does not meet this expectation must notify the DfE and explain their rationale.

STRONGER EXPECTATION: Audit and risk expertise

At least one member of the audit and risk committee should have recent or relevant accountancy, audit or assurance experience.

STRONGER EXPECTATION: Financial sustainability and going concern

The handbook strengthens expectations around financial oversight. The Accounting Officer must notify the trust board where the trust’s ability to operate as a going concern is at risk and Trustees are expected to take ownership of the trust’s financial sustainability and ensure that the DfE is notified.

The handbook also encourages trusts to consider placing funds in high-interest savings accounts and using DfE-approved cash savings platforms.

What this means

Trusts should review the skills and experience available across the board and committees, as well as their approach to financial monitoring and reporting.

At least one member of the Audit and Risk committee should have recent or relevant accountancy, or audit assurance, experience. Other members should have appropriate financial training.

Trustees should now be asking:

• Does the board have the sufficient financial expertise?
• Do our audit and risk arrangements meet the new expectations?
• Are we receiving enough information to identify financial risks at an early stage?

4. Inclusion and community moves higher up the agenda

NEW SECTION: Inclusion and Community

For the first time, the handbook includes a dedicated section covering inclusion, SEND, collaboration with local authorities, place planning and partnership working.

Trusts must continue to comply with their legal duties in these areas, while boards are expected to maintain oversight of inclusion and work constructively with local authorities and other agencies to improve outcomes for pupils.

Many of the underlying duties already exist. However, the inclusion of a dedicated section within the handbook signals the growing importance the DfE places on inclusion, partnership working and community engagement as part of effective trust governance.

What this means

Boards may wish to consider whether their governance arrangements, reporting and strategic plans provide sufficient oversight of inclusion and community-related objectives.

Trustees should ask:

• How does the board monitor inclusion and SEND outcomes?
• Are we engaging effectively with local authorities and other partners?
• Does our strategic plan reflect our approach to inclusion and community engagement?

Other notable changes

STRONGER EXPECTATION: Integrated curriculum and financial planning

The handbook reinforces the DfE’s position that trusts should use integrated curriculum and financial planning as part of effective financial management.

CLARIFICATION: Electric vehicle salary sacrifice schemes

Prior DfE approval is no longer required for electric vehicle salary sacrifice schemes, provided trusts have appropriate safeguards in place to ensure no financial liability falls on the trust.

NEW REQUIREMENT: Alternative pension schemes

Trusts must continue to comply with Teachers’ Pension Scheme (TPS), Local Government Pension Scheme (LGPS) and Fair Deal requirements.

From October 2026, trusts wishing to offer an alternative pension arrangement must seek DfE approval before discussing proposed changes with staff.

CLARIFICATION AND EXPANDED GUIDANCE: Severance payments

The handbook provides additional detail on severance arrangements and confidentiality clauses.

DfE approval is required for certain severance payments, including where the overall exit package exceeds £100,000 and includes a special severance payment, where the employee earns more than £174,000, or where the payment could be considered novel, contentious or repercussive.

NEW REQUIREMENT: GAG pooling statements

Multi-academy trusts must publish a summary statement on their website by 31 January each year explaining how funding is distributed across schools within the trust.

CLARIFICATION: Secretary of State intervention powers

The handbook provides additional detail on the action that may be taken where a trust breaches duties imposed under its funding agreement, including directions requiring corrective action within a specified timeframe.

What should trusts do now?

Although the new handbook does not take effect until 1 October 2026, academy trusts should begin reviewing their arrangements now.

In particular, trusts may wish to:

• review procurement arrangements, especially supply staffing, energy and MIS contracts
• assess executive pay policies and upcoming recruitment plans
• evaluate the financial expertise of trustees and committee members
• review CFO recruitment plans and qualifications
• ensure boards have appropriate oversight of inclusion and community engagement
• identify any policy, governance or reporting changes required before implementation.

The Academy Trust Handbook continues to evolve each year and reflects the increasing expectations placed on trusts around governance, accountability and financial stewardship.

Taking time now to understand the changes and prepare for implementation will help ensure compliance while supporting effective leadership and decision-making across the Trust.

A full copy of the handbook can be found here. A link to the Excel format separate schedule of the “musts” which trust boards should review annually to ensure compliance is met or at least is in progress can be found here.

If you would like to discuss how the changes may affect your Trust or if you would like to enquire about financial and governance training for Trustees, please speak to your usual Kreston Reeves adviser or contact us here.

We provide specialist Academy ESG reporting and advisory support focused on practical action, clear reporting and a Trust-wide impact. Our ESG Team can meet with you to discuss best practice for your Climate Action Plan and the incoming changes to the SORP that see the introduction of Sustainability Reporting.

If your Trust would benefit from an independent review of your governance, financial management or compliance arrangements, please speak to any member of the Kreston Reeves Academies and Education team.