Academy Trust Handbook 2026: Summary of key changes
The Department for Education (DFE) have published the updated Academy Trust Handbook (ATH), which will come into force from 1 October 2026, a month later than usual. This year’s Handbook includes a number of key updates, with an accompanying letter providing some additional context. A big focus of the Handbook is on finance this year, reflecting the financial challenges facing the academy trust sector.
Roles and responsibilities
The updated Handbook explains trusts’ responsibilities for inclusion and collaboration regarding:
- the strategic approach
- partnership with other agencies, such as local authorities
- safeguarding
- admissions and place planning
- special educational needs and disabilities (SEND)
Boards are also asked to ensure that they have sufficient oversight, so we recommend that all trusts review their strategy and make sure that the board has appropriate assurance over all aspects. Some helpful links can be found after section 1.20 of the Handbook.
Additional emphasis has been placed around finance, with recommendations that the board has appropriate financial skills and training to enable trustees to fulfil their responsibilities. Trusts with over 3,000 pupils who are recruiting a Chief Financial Officer (CFO) should:
- specify that the person should be a qualified accountant from 1 October 2026.
- notify the DFE in advance to explain if they are not appointing someone with the appropriate qualification from 1 October 2027.
Trusts are also reminded that they should be working towards meeting the digital and technology standards by 2030.
Main financial requirements
Trusts are now expected to adopt the integrated curriculum and financial planning (ICFP) model., It is now classsed as a “should” rather than being encouraged to adopt as was the case previously.
Additional emphasis has been put on reporting on trusts’ ability to continue as a going concern, ensuring more visibility, taking actions and informing the DFE where appropriate. This places some additional requirements on the Accounting Officer to notify the board and DFE of key risks.
It is now mandatory for trusts to consider DFE procurement options when making purchasing decisions, with this section of the Handbook linking directly to the Get Help Buying For Schools section of the DFE website. In previous versions of the Handbook, this requirement was classed as a “should”. This is a key change, with supply staff and energy contracts being a particular focus now that both must use approved routes, with MIS contracts due to follow from 2027. Trusts should ensure they are aware of all key contract dates so that they can plan ahead.
Any new executive appointments with remuneration above £174,000 (pro rata for part time staff) or performance-related pay above £25,000 will now require DFE approval before the post is advertised. Requirements for robust evidence-based executive pay decisions are emphasised, meaning trusts must seek DFE approval if they want to increase executive pay at a rate faster than teachers.
Electric Vehicle schemes no longer need prior approval provided certain conditions are met, it is now mandatory for trusts to seek approval from the DFE if they are offering any alternatives to the teachers and local government pension schemes.
Delegated authorities
Some additional information has been added to the Handbook for trusts when dealing with severance payments. Trusts must:
- demonstrate that they have obtained appropriate legal advice
- demonstrate value for money
- retain all evidence to support decisions, ensuring it is available to access if necessary.
In certain circumstances, prior DFE approval is required, including:
- payments over £50,000
- exit packages above £100,000
- where employees earn over £174,000
- where confidentiality agreements are put in place.
Whilsts packages at the above levels are relatively rare, the principles around special payments apply regardless of value, so all trusts should be aware of the requirements.
Multi academy trusts must publish a summary statement on their website by 31 January showing how funds are distributed across their schools. This should mirror the information published in the financial statements. As this is a new requirement, a template has been created to support trusts with understanding what is required.
The regulator and intervention
The Handbook now includes further information on action that may be taken by the Secretary of State where a trust is in breach of any duty imposed under its funding agreement. Corrective actions and a timetable may be imposed, and trusts must comply with any such actions. Non-compliance may result in enforcement via a court order.
In summary
There is a particular focus on financial oversight and transparency in this year’s Handbook update, with many of the changes going beyond the clarification and emphasis that we have seen in recent years. We recommend that all trusts fully understand the changes, agree an action plan to ensure compliance from 1 October 2026, and ensure that senior leaders and trustees are up to speed with the key requirements.
We’re here to help
As always, if you have any questions on the Handbook, how it may impact on your organisation, or any other topics, please get in touch with our specialists via the form below, or speak to your usual Azets adviser.
