Academy Trust Handbook 2026: what Academy Trusts need to know now

Increased scrutiny of executive pay

The biggest headline change is executive pay. Trusts were already required to make sure senior pay was fair, evidence based, and defensible. The 2026 handbook goes further by saying executive pay must not rise faster than teachers’ pay unless the trust has a clear reason and secures advance approval from the Department for Education.

There is also a new approval gate for high-paid posts. From 1 October 2026, if a new academy trust appointment would pay more than £174,000, or the same amount adjusted for part-time work, DfE approval must be obtained before the post is advertised. The same prior approval rule applies to performance-related pay above £25,000. This means boards need to settle the evidence for high pay before recruitment starts, not after a preferred candidate has been chosen.

Qualifications for finance leaders

The Handbook also raises expectations for finance leadership in larger trusts. Trusts must assess whether their chief financial officer and other key finance staff need business or accountancy qualifications, based on the size, risk, and complexity of the trust’s finances. For trusts with more than 3,000 pupils, any CFO recruitment exercise starting on or after 1 October 2026, should specify that the person should be a qualified accountant, a member of a relevant professional accountancy body, or hold the CIPFA Level 7 qualification.

That expectation becomes firmer in 2027. For larger trusts, CFO recruitment starting on or after 1 September 2027, must specify that qualification requirement. If a trust plans to appoint a CFO who does not meet it, the trust must tell DfE in advance and explain why.

Buying rules matter more, especially for supply staff, energy and MIS

The Handbook also has major implications for contracts. Trusts must consider DfE's 'Get help buying for schools' service when purchasing goods and services, and they must record their decisions.

Supply staff is the most visible example. The Handbook says all trusts are required from 1 October 2026 to procure supply staff through the Government Commercial Agency’s Supply Teachers and Education Recruitment framework, unless they have a compliant alternative that costs no more than the framework rates. If a trust's spending is over the legal threshold, the alternative route must follow the Procurement Act 2023 process. DfE has, however, said it will not force trusts to exit existing contracts. When renewing energy contracts, trusts are required to use the DfE Energy for Schools service or a DfE approved Energy deal (under Get Help Buying for Schools) unless an alternative agreement with comparable pricing has been sourced.

MIS contracts are another significant area where new rules are coming in. From 1 September 2027, trusts will need to use the DfE's MIS framework for new contracts. In the interim, if a trust's MIS contract expires between 1 October 2026 and 1 September 2027 then any extension or replacement must last no more than 12 months. If an existing MIS contract runs beyond 1 September 2027, trusts must not extend the duration of that contract.

Pensions and electric vehicles need early checks

The Handbook gives pensions a sharper warning label. Academy trusts must comply with Teachers’ Pension Scheme and Local Government Pension Scheme rules, and with HM Treasury’s Fair Deal guidance for staff pensions. If a trust wants to offer any alternative to those schemes, it must approach DfE early and before telling staff about proposed changes. The alternative must be approved before changes are made.

The 2026 update also changes the position on electric vehicle salary sacrifice schemes. The Handbook says these schemes are now allowed. Separate government guidance covers academy trusts and colleges that are considering offering staff a salary sacrifice option for electric vehicles. Trusts should still treat these schemes as contracts with financial risk, because earlier DfE guidance explained that the trust may hold the lease with the scheme provider and must manage possible liabilities.

Severance payments are under a brighter spotlight

The Handbook spends more time explaining severance payments. Staff severance payments should not look like a reward for failure, including cases involving gross misconduct or poor performance. Trusts should apply strong value-for-money checks even when a payment is below £50,000.

Confidentiality clauses are treated especially carefully. For special severance payments, confidentiality clauses are always treated as novel, contentious, or repercussive, so they must not be used unless the trust has prior DfE approval. Any confidentiality clause must not stop whistleblowing, and it must not stop DfE from getting enough information to assess the payment.

An increased push for transparency

Academy trusts are now required to publish details on how funds are allocated across their schools. In addition, trusts must disclose pay information for employees whose total benefits exceeded £100,000 in the previous financial year (ending 31 August), broken down into £10,000 bands. The direction from the DfE is clear: boards should be able to account for how funds are spent, who receives them, and the rationale behind financial decisions, ensuring transparency and accountability in the use of public money.

Key actions for Academy Trusts

Academy trusts should take proactive steps to prepare for these changes ahead of the October deadline. This includes reviewing processes for senior pay, recruitment of CFOs, supply staff contracts, MIS agreements, pension arrangements, and severance policies. It is also important to ensure board papers are updated to clearly document decisions and secure necessary approvals before making commitments. The Handbook emphasises the importance of careful financial management: spending public funds prudently, recording decisions thoroughly, and seeking DfE approval where required.