Academy Trust Handbook 2025: key updates you need to know

While there are no major surprises, Trusts should review their policies and procedures to ensure compliance. Here is a quick rundown of the changes :

• Digital and Technology Standards:  Trusts must work towards six core digital and technology standards by 2030. These will help to support safeguarding and protect against cyber attacks. These standards, last updated in March 25 can be found here.
• Estates Management:  The Handbook links to the new School estate management standards, which are non-statutory standards to provide a framework for effective estates management. This builds on the recent publication of the Estate management: competency framework and relevant training (which sets out the expected skills and knowledge needed for individuals working in estates management in schools) and the update to GEMS Good estate management for schools guidance in April this year.
• Sustainability and Climate Action: Trusts must appoint a Sustainability Lead and create a Climate Action Plan. This was a requirement that was originally set out in the guidance Sustainability leadership and climate action plans in education which was updated in March this year to include information about developing and storing climate action plans and the Let's Go Zero national campaign. 
• Notices to improve: Educational Performance is no longer a trigger for a Notice to Improve under the Handbook. This recognises that the DfE aims to address educational performance through other forms of intervention (eg RISE team support/ termination warning notice ahead of structural intervention). We await the outcome of the DfE's consultation on School accountability reform – school profiles, improvement and intervention.
• Procurement: This section has  been updated to reflect the Procurement Act 2023 which came into force in February 2025. The Act helps to enhance transparency and oversight with helpful links and guidance in the Handbook. The Procurement Act 2023 Guidance documents were published in May 2024 but updated in February of this year.
• Cyber Ransomware: Trusts are prohibited from paying Cyber Ransomware Demands. (Previously permission to pay could in principle have been sought from the ESFA). 
• Financial Oversight: The DfE's Regions Groups will now oversee financial management replacing the ESFA's regulatory role. New guidance Financial support and oversight for academy trusts guidance published in June 2025 provides further information. 
• Fraud and Irregularity: The DfE can recover funds where there is evidence of fraud or irregularity. Separately, the DfE has published new guidance: Reducing fraud in the education sector and updated their Indicators for potential fraud: a generic checklist for education providers.
• Novel Contentious or Repercussive (NCR): The definition of "repercussive" has been broadened to include proposals that could set a precedent or cause additional costs for other parts of the government. This builds on the good practice guidance on NCR transactions published in March of this year: Good practice guidance for colleges and academy trusts on novel, contentious and repercussive transactions.
• Executive Pay: The process for determining executive pay must be documented in an agreed pay policy (with specified requirements). The Handbook now states that decisions on executive pay (which must be reasonable and defensible) may be challenged by the DfE. 
• Income thresholds: The £50m threshold in sections 3.6 and 3.16 (which triggers the requirement to have a separate audit and risk committee along with other requirements as regards the internal scrutiny programme) will now be based on the latest audited accounts not projected income.  

Accounting Officer Duty to raise concerns

Clarification is added that this includes circumstances where the proposed action conflicts with the duties of the accounting officer to ensure regularity, propriety, value for money and feasibility. If you require any assistance with any review of internal policies to align with the above changes in the handbook please contact Chloe Brunton. 
 

For more information or advice, please contact Miriam Chloe Brunton in our Academies and Maintained Schools team.