Academy Trust Handbook 2026: What Changed and What Trustees Must Do
The Academy Trust Handbook 2026 sets DfE's financial governance, management and control framework for academy trusts in England. Effective from 1 October 2026, it applies to all academy types, including single-academy trusts and MATs. Compliance with its requirements is a condition of each trust's funding agreement with the Secretary of State for Education.
What the Academy Trust Handbook is, and its status
The 2026 handbook explains the responsibilities of people governing, managing and auditing academy trusts. Its Introduction and “What the handbook covers” sections establish its contractual status and scope. It remains in force until updated or replaced. This guide was checked on 10 October 2026 and concerns England; it is not a financial framework for maintained schools or Irish schools.
Read the wording as well as the paragraph number. Under “Using the handbook”, must identifies a requirement; should identifies minimum good practice, unless a trust can demonstrate that another approach better suits its circumstances. A board paper should preserve that distinction. A suggested evidence folder or briefing format in this guide is an Edvance working suggestion, rather than a new DfE requirement.
The board has collective accountability for the trust under paragraph 1.10. Paragraphs 1.26 and 1.41 address trustees' financial responsibility and the accounting officer's personal assurance responsibility. Delegating work does not transfer these responsibilities. Read trust board versus local governing body responsibilities when deciding which questions belong at trust level and which local committees can help answer.
What changed in the Academy Trust Handbook 2026
The table follows the handbook's own “What has changed” section. The final column suggests board follow-up; it does not turn every change into a mandatory action. The effective date appears separately because it is stated under “What the handbook covers”, rather than listed as a changes-section bullet.
| Area | Change identified by DfE | Paragraph | Suggested board follow-up |
|---|---|---|---|
| Effective date | The 2026 edition takes effect on 1 October 2026, rather than the preceding edition's 1 September 2025 date | What the handbook covers; 2025 edition | Update the source date on the board's compliance plan |
| Inclusion and collaboration | Explains strategic approach, oversight and partnership responsibilities | 1.16–1.20 | Ask for assurance on inclusion and work with relevant agencies |
| Digital standards | Reminds trusts about working towards the standards by 2030 | 1.21 | Review the technology plan and its oversight route |
| Trustee skills | Strengthens the position on financial knowledge and expertise | 1.31 | Identify training needs across board and committees |
| CFO qualifications | Strengthens the position on relevant accountancy qualifications in larger trusts | 1.46 | Check the provision against the trust's circumstances |
| Curriculum and finance | Strengthens integrated curriculum and financial planning | 2.13 | Connect curriculum choices with financial assumptions |
| Going concern | Strengthens reporting of risks to continued operation | 2.21 | Agree how the accounting officer will raise concerns |
| Purchasing | Requires consideration of DfE opportunities | 2.27 | Include the consideration in procurement records |
| Procurement arrangements | Explains supply staffing, energy and MIS procurement | 2.28–2.30 | Check live procurement plans against each paragraph |
| Electric vehicles | Updates the permissive position for salary-sacrifice schemes | 2.37 | Check conditions and documented mitigations before offering a scheme |
| Pensions | Requires prior approval for alternative pension schemes | 2.40 | Route proposals to DfE early, before staff communications |
| Severance | Explains further considerations and actions | 5.7–5.14 | Check proposed payments before making commitments |
| Fund distribution | Confirms MAT website publication of how funds are distributed across schools | 5.32 | Review the public explanation and underlying method |
| Intervention | Explains action for breaches of funding-agreement duties | 6.17 | Brief trustees on the consequences of non-compliance |
The handbook collection's update history records a further update on 1 October 2026, clarifying MIS procurement requirements in paragraph 2.30. Its 17 September update addressed energy and MIS procurement in paragraphs 2.29–2.30. Use the current text, rather than an earlier downloaded copy, when reviewing a procurement proposal.
For each relevant change, a useful board paper identifies the affected process, owner, existing evidence and remaining decision. Avoid recording “handbook noted” as if that proves implementation. Some changes may require a revised policy; others may need a different report or assurance question. Ask the owner to explain which response fits the actual requirement and how the board will know it has happened.
Senior pay controls from 1 October 2026
Paragraphs 2.33–2.34 and DfE's senior pay controls guidance provide two distinct approval routes. For new appointments, approval is needed before advertising if remuneration exceeds £174,000, including the pro-rata equivalent for part-time staff, or performance-related pay is above £25,000. Treat advertising as the control point, rather than waiting until a preferred candidate has been selected.
Separately, where a trust considers there is clear justification for executive remuneration to increase faster than its teachers' remuneration, it must seek approval in advance. This applies regardless of remuneration value. The guidance's “Comparing executive pay and teacher pay increases” section uses the average percentage increase across the trust's teaching workforce over the same period, reflecting actual changes under its own arrangements. It should not be based solely on the national pay award.
The guidance defines remuneration to include salary, fees, pension above normal comparable levels and allowances; performance-related pay is considered separately. It also addresses existing contractual obligations: where these produce a faster increase, the trust must apply for approval. Do not describe the controls as permission to disregard employment contracts. Ask HR and finance to identify the applicable case before a remuneration paper reaches the board.
Paragraphs 2.31–2.32 retain the evidence-based pay process and agreed pay policy. No individual can decide their own remuneration. The guidance's “Governance and decision-making” section requires independent challenge, supporting evidence, conflict management and documented board approval before implementation. A practical approval file can bring together the role, complete package, benchmarking, teacher comparison, board rationale and DfE response. The guidance's relevant application form should be used where approval is required.
These controls are explained directly in the operative paragraphs and separate guidance. They are not presented here as an extra bullet from the handbook's “What has changed” list, which does not separately enumerate them.
The board's musts: requirements and evidence
This is a selected board briefing checklist, not the complete Schedule of Musts available from DfE. The handbook paragraphs determine the duties. Owners and evidence below are suggested ways to organise assurance; trustees retain their responsibilities even where an executive prepares the record.
| Requirement | Handbook paragraph | Suggested owner for preparation | Evidence to bring to the board |
|---|---|---|---|
| Appoint a governance professional who is not a trustee, principal or CEO | 1.48 | Chair and governance lead | Appointment record and role description |
| Maintain relevant interests and keep the register current | 1.51–1.54 | Governance professional | Register, declarations and recorded conflict handling |
| Publish accessible governance arrangements, interests and attendance information | 1.55 | Governance and website leads | Published page checked against current records |
| Approve a written delegation of financial powers with robust controls | 2.4 | Board, supported by CFO | Approved scheme and board minute |
| Approve the budget forecast return before submission | 2.15–2.16 | CFO and board | Board approval and submission confirmation |
| Prepare monthly management accounts and share them with the chair | 2.18–2.19 | CFO | Accounts, chair circulation and board scrutiny |
| Apply the executive pay and senior pay approval rules | 2.31–2.34 | Board or pay committee within its remit | Pay policy, rationale and required DfE approval |
| Retain overall risk oversight and review the register fully at least annually | 2.43 | Board and audit and risk committee | Risk register and review minutes |
| Establish independent internal scrutiny and an audit and risk committee | 3.1, 3.5–3.8 | Board and audit and risk committee | Terms, programme, reports and follow-up |
| Submit the internal scrutiny summary report with audited accounts | 3.21 | Accounting officer and CFO | Annual report and submission record |
| Prepare audited accounts and complete submission, publication and filing | 4.1–4.4 | Board, accounting officer and CFO | Signed accounts and separate completion records |
| Report related party agreements and obtain prior approval where required | 5.42–5.45 | CFO and accounting officer | Interest check, notification and approval evidence |
Use the evidence column to distinguish a process being designed from a process operating. For example, an approved scrutiny programme does not show that its recommendations have been addressed. Give open actions an owner and review point. Where trustees lack the information needed to be assured, record the request and bring back the evidence, rather than marking the row complete because it was discussed.
The financial year calendar
The Accounts Direction 2025 to 2026, paragraph 1.13 and Table 1, supplies the dated accounts milestones for the year ended 31 August 2026. The trustee accounts checklist turns these into an autumn preparation plan. These are different tasks, so use separate completion records.
| Milestone | Verified timing | Source |
|---|---|---|
| Accounting year end | 31 August 2026 | Direction 1.6; handbook 4.3 |
| DfE submission | 31 December 2026: audited accounts, external auditor's findings report, accounts submission coversheet and annual internal scrutiny report | Direction 1.13, Table 1 |
| Website publication | Full accounts by 31 January 2027 | Direction 1.13, Table 1; handbook 4.4 |
| Companies House | Within nine months of the period end; normally 31 May 2027 | Direction 1.13, Table 1; handbook 4.4 |
| Budget forecast return | Deadline set by DfE each year; board approval before submission | Handbook 2.15–2.16 |
| Internal scrutiny | Annual programme with work spread across the year; summary submitted by 31 December | Handbook 3.13, 3.15, 3.21 |
| Regularity statement | Accounting officer completes and signs annually; submitted with audited accounts | Handbook 1.40 |
The handbook does not state a fixed calendar date for the budget forecast return, so this guide does not invent one. Paragraph 1.13 of the Direction points to exceptions in paragraph 3.96; a trust affected by inactivity or transfer should check those provisions with its advisers. The calendar also does not make internal scrutiny an exercise to begin in December: reports and follow-up should inform assurance throughout the year.
Related parties, delegated authorities and website information
Paragraph 5.42 requires advance reporting of related party contracts and agreements before commencement or renewal. Paragraph 5.43 requires prior DfE approval for relevant goods or services agreements exceeding £40,000 in the same financial year, subject to its stated exceptions. Paragraph 5.45 separately requires prior approval for novel, contentious or repercussive related party agreements regardless of value. Read the exceptions and scope in paragraphs 5.43–5.44 before applying a threshold to a particular transaction.
Keep these external controls distinct from internal spending limits. The scheme of delegation guide and matrix helps identify who prepares, recommends and decides internally. A committee's approval cannot substitute for required DfE approval. Suggested working practice is to place the interest declaration, procurement rationale, relevant notification and approval alongside the decision record.
Website duties also concern more than uploading a policy folder. Paragraph 1.55 covers governance structure and remits, specified interests and attendance. Paragraph 2.35 requires a separate, accessible disclosure of the number of employees whose benefits exceeded £100,000 in £10,000 bands, including its stated off-payroll provision. Paragraph 5.32 requires MATs to publish how funds are distributed across schools. Check each disclosure using its own definition; the pay-publication definition is not the senior-pay approval definition.
How to brief the board: ten autumn-term actions
The following is a suggested briefing sequence. It helps turn the source requirements into reviewable work without claiming that DfE prescribes this meeting format.
- Circulate the current 2026 handbook and identify its 1 October effective date.
- Assign an owner to assess each changes-table item against the trust's arrangements.
- Ask the accounting officer to explain any risk to the trust's ability to operate as a going concern.
- Review executive recruitment and proposed pay increases before advertising or implementation.
- Check financial delegations and committee terms against the current governing documents.
- Test an actual procurement proposal against the supply staffing, energy or MIS provisions where relevant.
- Agree how inclusion, digital planning and financial skills will be considered in board assurance.
- Review the internal scrutiny programme, findings and outstanding recommendations.
- Confirm the accounts approval, signature, submission, website and filing owners separately.
- Check published governance information and record remaining actions for follow-up.
End the paper with the decisions needed now and the evidence due at a later meeting. A brief, accurate record of an unresolved issue is more useful than an unsupported assurance statement. Use the MAT governance hub for the supporting structure, delegation and accounts guides, and return to the official paragraphs when an individual case falls outside this overview.
Frequently Asked Questions
What is the Academy Trust Handbook?
It is DfE's framework for financial governance, management and other controls for academy trusts in England. Its Introduction and What the handbook covers sections explain its status as a condition of the funding agreement.
When does the Academy Trust Handbook 2026 come into effect?
The 2026 edition has been effective from 1 October 2026 and remains in force until updated or replaced, according to What the handbook covers.
What changed in the Academy Trust Handbook 2026?
The handbook lists changes on inclusion, digital standards, financial expertise, curriculum and financial planning, going concern, procurement, electric vehicle salary sacrifice, pensions, severance, fund distribution and intervention. Senior pay controls are explained in paragraphs 2.33–2.34.
Is the Academy Trust Handbook mandatory?
Compliance with its requirements is a condition of the funding agreement. The Using the handbook section distinguishes must requirements from should provisions, which describe minimum good practice unless a demonstrably suitable alternative applies.
Who is responsible for compliance with the Academy Trust Handbook?
The board has collective accountability under paragraph 1.10. Paragraph 1.41 gives the accounting officer a personal, non-delegable responsibility to assure the board about compliance. The Introduction also requires people governing, managing or auditing the trust to understand and adhere to the handbook.