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Key Academy Trust Handbook 2026 updates for trustees, CFOs and finance leaders.
14 August 2026
The Department for Education (DfE) published the Academy Trust Handbook 2026 on 15 July 2026. Unusually, the Handbook takes effect from 1 October 2026, giving trusts additional time to prepare for a wider range of changes than we have seen in recent years.
While the Handbook remains focused on financial stewardship and governance, the 2026 edition broadens expectations around inclusion, financial expertise, procurement, executive pay, sustainability and transparency. Many of the changes reflect the DfE's increasing focus on demonstrating value for money and strengthening public accountability.
Perhaps the most notable development is the introduction of new requirements regarding inclusion.
The Handbook now places greater emphasis on trusts taking a strategic, trust-wide approach to supporting pupils with SEND, disadvantaged pupils and children known to social care. Trusts are expected to monitor outcomes, deploy resources effectively and work collaboratively with local authorities and partner organisations.
A significant governance implication is that boards are expected to designate either:
This moves inclusion beyond an operational matter and firmly into the board's oversight responsibilities.
The DfE has strengthened its expectations regarding financial knowledge and capability within trusts.
Boards are now expected to actively assess whether they possess sufficient financial expertise and address any gaps through recruitment, training or succession planning. This is particularly relevant for members of finance and audit and risk committees.
The Handbook also introduces a phased move towards professionally qualified Chief Financial Officers in larger trusts.
For trusts with more than 3,000 pupils:
This reflects the increasing complexity and scale of many academy trusts and the DfE's expectation that financial leadership keeps pace.
Executive remuneration remains an area of regulatory focus.
The 2026 Handbook introduces additional circumstances where trusts must seek DfE approval before proceeding. This includes advertising posts with remuneration above specified thresholds and certain performance-related payments. For new appointments within academy trusts where remuneration exceeds £174,000, or the pro rata equivalent for part-time staff, or performance-related pay above £25,000, approval from DfE must be obtained before the post is advertised.
Trusts are also expected to ensure remuneration decisions are supported by robust evidence and documented within an appropriate pay framework. For boards and remuneration committees, documentation and challenge will become increasingly important in demonstrating that decisions represent proper use of public funds.
A number of procurement expectations previously presented as good practice have effectively been strengthened.
The DfE has increased its emphasis on using approved frameworks and procurement routes when purchasing goods and services. Trusts are expected to consider DfE-approved purchasing arrangements and record their rationale when making procurement decisions. Additional emphasis has also been placed on energy procurement, supply staffing arrangements and management information system (MIS) contracts.
This continues the DfE's drive towards securing value for money across the sector.
The Handbook strengthens expectations around financial monitoring and long-term sustainability.
Accounting officers now have a more explicit responsibility to alert the board and, where appropriate, the DfE when there are concerns regarding the trust's ability to continue operating as a going concern.
This reinforces the expectation that boards actively monitor financial resilience rather than relying solely on year-end reporting.
Trusts facing budget pressures should consider whether existing forecasting, reserves monitoring and financial reporting processes are sufficient to identify issues at an early stage.
The DfE continues to focus on transparency, particularly within multi-academy trusts.
October 2026, multi-academy trusts must publish a summary statement of their financial arrangements annually on their website alongside their audited accounts.
The statement should explain how funds are distributed across your schools and show how much is spent on each school in the trust.
For many MATs, this may require greater documentation of funding allocation methodologies and clearer communication with stakeholders regarding resource distribution decisions.
The DfE has updated the rules surrounding settlement agreements and severance arrangements, including more detailed requirements regarding legal assessments and prior approval. The revised guidance provides a clearer framework for determining whether severance payments represent an appropriate use of public funds.
Trusts using settlement agreements should review their HR and legal processes to ensure compliance before 1 October 2026.
Academy trusts should use the period before 1 October 2026 to:
The Academy Trust Handbook 2026 is more than a routine annual update. While many familiar requirements remain unchanged, the DfE has clearly signalled greater expectations around inclusion, professional financial leadership, transparency and accountability. Trusts that treat these changes as strategic governance matters, rather than simply compliance requirements, will be best placed to demonstrate effective stewardship of public funds and deliver strong outcomes for pupils.
Our Academies specialists can help you review governance arrangements, strengthen financial oversight and prepare your trust for the new requirements. Email us your enquiry.
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