Academy Trust Handbook 2026: Key Changes for Academy Trusts

The Department for Education has published the Academy Trust Handbook 2026 (ATH 2026), effective from 1 October 2026. While the overall framework remains largely unchanged, the latest edition introduces a number of important updates that strengthen expectations around inclusion, financial sustainability, procurement, executive pay and governance.

While there are no major structural changes this year, the handbook provides a useful insight into where the DfE’s focus is moving. Themes such as inclusion, financial resilience and transparency continue to feature prominently, with a number of updates that boards and leadership teams should review ahead of implementation.

Inclusion becomes a key governance priority

Inclusion receives considerably more attention in this year’s handbook than in previous editions. Trusts are expected to ensure inclusion is embedded across all aspects of provision, particularly for pupils with SEND, disadvantaged pupils and children known to social care.

The handbook also places greater emphasis on working constructively with local authorities and other agencies to support local inclusion priorities and improve outcomes for children.

Many trusts will already have these arrangements in place, but boards may wish to consider how inclusion receives assurance and challenge at governance level and whether this is sufficiently evidenced.

Greater emphasis on digital readiness

The DfE has reinforced expectations around digital infrastructure, reminding trusts to work towards meeting the department’s Digital and Technology Standards by 2030. These standards cover areas such as broadband, cyber security, network infrastructure and digital leadership.

Although the underlying standards are not new, their prominence within the handbook serves as a useful reminder that cyber security and technology infrastructure are increasingly being treated as governance matters rather than purely operational concerns.

Strengthened expectations around financial expertise

Financial expertise is another area where expectations appear to be increasing. This is particularly relevant for growing MATs, where the scale and complexity of operations can place significant demands on finance teams.

Trustees are expected to ensure they have sufficient financial knowledge and expertise to challenge and support executive leaders effectively, with particular emphasis on financial training for members of finance and audit committees.

Alongside this, the DfE has strengthened its expectations regarding Chief Financial Officers. For trusts with more than 3,000 pupils, future recruitment exercises should increasingly seek candidates holding a recognised accountancy qualification or equivalent CIPFA qualification.

A stronger focus on financial sustainability

Financial sustainability continues to be a priority. The handbook strengthens requirements around assessing a trust’s ability to operate as a going concern, with accounting officers expected to notify trustees when risks arise and boards expected to take ownership of any resulting actions.

The handbook also gives greater prominence to Integrated Curriculum and Financial Planning (ICFP), encouraging boards to align educational priorities, staffing decisions and financial planning to support long-term sustainability.

Procurement requirements tightened

Several changes relate directly to procurement and purchasing activity.

Trusts must now consider DfE procurement opportunities when making purchasing decisions and retain evidence of their decision-making process. In addition, the handbook confirms that trusts must use:

• The Government Commercial Agency framework for supply staffing requirements, unless an alternative arrangement offers equivalent value.
• The DfE Energy for Schools service or another DfE-approved energy arrangement when energy contracts are renewed.
• The DfE Management Information System (MIS) framework for future MIS procurements, with transition arrangements expected by September 2027.

Collectively, these measures continue the trend towards greater use of centrally supported procurement frameworks. Trusts approaching contract renewal dates should review existing arrangements early to avoid any unintended compliance issues.

New executive pay controls

Executive pay continues to attract considerable attention from both the DfE and the wider public sector.

The handbook reinforces the expectation that trusts adopt a robust and evidence-based approach to executive pay. From October 2026, DfE approval will be required before advertising new roles where remuneration exceeds £174,000, or where performance-related pay exceeds £25,000.

In addition, executive pay increases should not exceed those awarded to teachers unless there is a clear justification and prior approval has been obtained from the DfE.

Changes to staff benefits and pensions

A notable change is the confirmation that electric vehicle salary sacrifice schemes no longer require prior DfE approval, provided appropriate safeguards are in place and the trust is not subject to a Notice to Improve.

The handbook also introduces a requirement for trusts to obtain DfE approval before offering any alternative arrangements to the Teachers’ Pension Scheme or Local Government Pension Scheme.

Increased focus on severance arrangements

The DfE has expanded guidance around severance payments and settlement agreements. Trusts are expected to apply robust scrutiny, demonstrate value for money and maintain clear records supporting decisions. The handbook also strengthens restrictions around confidentiality clauses, reinforcing the need for transparency.

Greater transparency for MATs

Multi-academy trusts will now be required to publish a summary statement explaining how funding is distributed across their schools. This must be published alongside annual accounts and is intended to improve transparency around resource allocation within trusts.

Looking ahead

Overall, the changes introduced in ATH 2026 are more about strengthening expectations than introducing entirely new requirements. The direction of travel is clear: greater emphasis on financial sustainability, stronger governance oversight and increased transparency around decision-making. Trusts that already have robust governance and financial management arrangements are unlikely to face significant challenges in implementation, but the updated requirements provide a useful opportunity to review existing policies, processes and board assurance arrangements.

Although the Academy Trust Handbook 2026 is effective from 1 October 2026 rather than the start of the academic year, the intervening period should not be viewed as additional time to delay action. Trusts should use September to assess the impact of the new requirements, update key policies and ensure trustees are aware of their revised responsibilities.

If you would like further guidance on these points or any other aspects of the ATH 2026 please contact one of your usual academy contact at BHP for a discussion.