MAT Accountability: Lessons from Arthur Terry Trust

Pip: John Howson has been watching the Department for Education manage academy trust finances, and the results are — let's say — instructive.

Mara: Today we're looking at what happens when a large multi-academy trust runs up a serious deficit, and what better oversight of school finances might actually look like. Let's start with the Arthur Terry case and the question of who's really minding the money.

An ATOL Scheme for MATs, as DfE finally takes action on MAT with a large deficit

Mara: The Arthur Terry Learning Partnership — a trust running 25 schools and a teaching hub — has been broken up by the DfE after its deficit ballooned to alarming levels. The question the post asks is whether the oversight system that was supposed to catch this actually worked.

Pip: The numbers are stark. The post notes that the trust went "from a deficit of £4.5mn in August 2024 to a deficit of £8.3mn in August 2025, and who knows what by May 2026" — figures drawn directly from Companies House filings.

Mara: That works out, as the post calculates, to just under £320,000 of deficit per school. And the timing of the announcement — released just before a school holiday — gets a pointed label: a "Jo Moore" story.

Pip: The iPad explanation that Schools Week floated — purchasing devices for all 11,000 staff and pupils — gets tested carefully here. Even at full retail, the sums don't obviously account for the whole gap, and the post notes senior salaries weren't the culprit either. A top salary of £160,000 is noted as not wildly out of line for MAT CEOs.

Mara: What the post identifies as the deeper problem is structural. The abolition of the Funding Agency and the return of its functions to the DfE removed a layer of scrutiny. The post puts it directly: "lack of local political scrutiny means all the oversight rests with the civil service."

Pip: And if the consequence of running up a deficit is simply that your schools get transferred to another trust and the DfE covers the bill, the incentive to stay solvent is — let's say — limited.

Mara: Which is where the ATOL analogy comes in. The post proposes what it calls an MBOS — a MAT Bail Out Scheme — levied on all trusts, governed by a board of finance directors from both MATs and public companies, with a neutral chair. The idea is a collective insurance mechanism that only functions if the DfE is willing to act swiftly when deficits cross a defined threshold per school.

Pip: The post also flags that falling rolls will tighten school finances across the board — and that local government reorganisation could create similar audit gaps in rural England.

Mara: Whether the MBOS model appeals to government or not, the post's core argument is that the current arrangement — where public money can disappear and the remedy is a quiet reshuffling of schools — isn't accountability at all.


Pip: The ATOL comparison is doing real work here — not just as a metaphor, but as a genuine policy sketch.

Mara: And the underlying question about who bears the cost when oversight fails isn't going away, especially with demographic pressure building on school budgets.

An ATOL Scheme for MATs, as DfE finally takes action on MAT with a large deficit

SchoolsWeek are running a story about the breakup by the DfE of a multi-academy trust that was seriously in deficit last August, when it closed its account year for 2024-25. Arthur Terry: Trust with £8m deficit to be broken up

 I suppose this is the sort of story that is best released just before a school holiday – what at one time was known as a ’Jo Moore’ story. Now there’s a surprise | John Howson

The fact that the Aruther Terry Learning Partnership (ATLP) can go from a deficit of £4.5mn in August 2024 to a deficit of £8.3mn in August 2025, and who knows what by May 2026, (page 83 of accounts filed at Companies House) raises serious questions about whether abolishing the Funding Agency and brining its functions back into the DfE has worked? THE ARTHUR TERRY LEARNING PARTNERSHIP filing history – Find and update company information – GOV.UK

The ATLP had 25 schools and a teaching hub under its management in August 2025. I make that a deficit of not far short of £320,000 per school.

SchoolsWeek informs readers that the issue has been around the decision to purchase iPads for all 11,000 staff and children. At current retail process that would amount to expenditure of somewhere between £3.6mn and £12mn, including VAT which would be recoverable.

Assuming some form of education discount, say 10%, the bill would be in the region of £2.5mn to £9mn depending upon the model selected. Opting to pay over a couple of years, would reduce the annual bill even more. As a result, although this might be a contributory cause, it doesn’t look like the whole cause of the crisis – unless I have underestimated their spend on additional software and other extras.

This is a MAT where they haven’t been paying excessive salaries to the senior staff. A top salary of £160,000, although more than any local Director of Children’s Services might have been receiving in August 2025, sadly isn’t way out of line for MAT CEOs.

The DFE has decided to wind up the MAT, and presumably force other MATs to take on schools in their localities. I assume, with some guarantee over any losses transferred with the school.

This is scandalous in terms of the oversight of public money. In my mind it demonstrates that lack of local political scrutiny means all the oversight rests with the civil service. Indeed, there is no reason for MATs not to rack up deficits if all that happens is the schools are transferred to another MAT, and the DfE funds the bill – presumably from the funds that might otherwise go to schools that manage to keep their finances in balance each year.

I wonder whether an ATOL type scheme might be appropriate, levied on all MATs, and used to pay off deficits that cause any MAT to become unviable? Of course, it will only work if the DfE is willing to take swift action. Any MAT with a debt amount of x per school should be wound up. The ATOL scheme, lets call in the MBOS (MAT Bail Out scheme) should have a board comprised equally of finance directors of MATs and finance directors of public companies, overseen by a financially astute, but neutral chair.   

Even if this sort of scheme isn’t attractive to government, there does need to be better oversight of MATs finances, especially as falling rolls will put pressure on all school finances. There might even be a similar scheme for local authorities, especially as local government re-organisation might mean the risk of lax internal audit regimes for a couple of years across large swathes of rural England.

UCET’s changing of leadership: a rare event

I have been rather tardy in posting my appreciation of the work of James Noble-Rogers, as executive director of UCET (The Universities Council for the Education of Teachers). James was only the second Executive Director the organisation has had so far, taking over from Mary Russell, its first director, after she had presided over the coming together of UCET and PCET, the universities high education teacher training organisation that merged with the polytechnics and colleges organisation, after those institutions became universities in the 1990s to form UCET as it is currently constructed.

James was recruited to his post at UCET from the civil service. I first knew him when I served at the then Teacher Training Agency between 1996 and 1997, in the role of advisor on teacher supply, an interest I retain until this day. James was working on ITT numbers in the DfE, and was a natural fit to take over from Mayr on her retirement. However, I suspect that many were surprised to see a civil servant, and not an academic, appointed to the role. Appointing James was an inspired move.

Afte leaving the TTA in 1997, I worked closely with UCET, and James, for about a decade while he steered UCET through the problems of firstly, falling interest in teaching as a career, and then the boom after the 2008 economic crisis that lead to, in my view, the mis-guided decision by Ministers to axe the training grant and require the payment of tuition fees for graduates when Michael Gove became Secretary of State. These moves contributed to the teacher supply crisis that I foreshadowed on this blog in my 2013 posts (see Howson: Teachers, Schools and views on Education – available from Amazon as an eBook).

The early years of the coalition were a challenging time for colleagues working higher education preparing new teachers and providing INSET. Some will recall the ‘blob’; others, the issue of recruitment controls that nearly caused several universities to consider pulling out of ITT/ITE.

James remained resolute in supporting the higher education community’s central involvement in teacher preparation and development, the position it still holds today, while recognising the emerging partnership with schools that through SCITTS were providing their own version of teacher preparation. At the same time, Teach First was creating another route into teaching.

The last decade after 2016, brought new changes, the effect of the covid pandemic, plunging interest in teaching from home students and the growth, in recent years, of applicants from around the world.

As I became more involved in local government politics after 2013, I lost regular contact with UCET, and stooped attending their annual conference.

Even to, I am delighted to be able to recall my association with James, and the long service he rendered to UCT over more than a quarter of a century. I hope that as with his predecessor, his work will be acknowledged formally by the State.

I enjoyed the time when I worked with James, and wish him well in the next stage of his life. I am delighted to see that he is still offering his support, advice and knowledge that few others can rival.

Children’s Wellbeing and Schools Act 2026 – misconduct

S52 of the new Act deals has made changes to the scope of teacher misconduct. Three things to note

The term teacher is still not a reserved occupation term: anyone can still call themselves a teacher., but if they do so, they will more likely now be caught by the widened provision, unless that is they are self-employed offering only tutoring. Should such tutors also be covered by misconduct regulations, or just subject to the general criminal law?

Clause 52 of the Children’s Wellbeing and Schools Act 2026 widens the scope of those within the compass of the new section on misconduct as a teacher to include:

“a person who employs or engages a person to teach at an institution within the further education sector, an independent training provider or an online education provider.”

and hence these ‘teachers’ now become liable to be brought before The Teacher Regulation Agency for a hearing into misconduct

The legislation confirms that action outside of employment may trigger a misconduct hearing

“(3A) For the purposes of subsection (1)(a) or (b) it is irrelevant whether the conduct occurred, or the offence was committed, at a time when the person was employed or engaged to carry out teaching work or at some other time.

That’s pretty draconian, but not surprising in view of the need for child safety.

Of course, if the on-line provider is outside the United Kingdom, then this provision won’t apply to non-British citizens. Will it apply to British citizens working outside the United Kingdom and working for an on-line provider?

Teaching work has been defined as: “teaching work” means work of a kind specified in regulations under this section (and such regulations may make provision by reference to specified activities or by reference to the circumstances in which activities are carried out).”

So now you know. It could mean almost anything. This may be important now the definition of those subject to regulation has widened.

However, the test remains:

  • that it relates to a person who has been employed or engaged to carry out teaching work in England; ……
  • that the alleged conduct is capable of amounting to unacceptable professional conduct, conduct that may bring the teaching profession into disrepute or conviction, at any time, of a relevant offence and that a prohibition order may therefore be appropriate.

Will the relevant offence list be the same for someone teaching in a further education setting as for an early years’ setting? I suspect that it will be, since certification as a teacher or lecturer in further education allows anyone to teach anything to anyone or any age.

In my opinion, this makes the need for a definition of a ‘teacher’ or ‘lecturer’ as a reserved term more important. Government could, for instance. Require anyone ‘teaching’ on-line to hold the appropriate ‘qualified’ status. A new qualification for tutoring, both in person and on-line, could be devised to help regulate the industry, at least as far as UK companies are concerned. It would then be up to parents whether they wanted to use a service on-line from overseas and using unqualified staff.

Children’s Wellbeing and Schools Act 2026

Hurrah for Section 61 and 62 of this new Act of Parliament. These two sections extend control over in-year admissions by local authorities to include academies. This has been achieved by inserting new clauses in the existing legislation, in order to widen the reach from just non-academy schools, historically controlled by local authorities, to now include academies and, I assume, free schools.

Regular readers will know that I started a campaign for this change way back in 2017, after I discovered how long it was taking to place children taken into care in a new school on some occasions, if that school was an academy. See Support ‘Looked After’ young people’s education | John Howson and Don’t forget Jacob | John Howson along with various other posts over the years on this blog.

The previous Children’s Commissioner also campaigned on this issue, and I raised it in November 2024 in questions to the Minister of State at the DfE when he spoke to the ADCS conference in Liverpool that year.

I hope the relevant sections of the new Act will be swifty enacted, rather than just sitting on the statute book.

There is then the issue of selective schools and children that would have attended them if taken into care before the selection process took place.

I hope that local authorities with selective schools in their area will ensure that such children are able to be placed in such schools. After all, a child should not go from the top set in a comprehensive school to a school that will not stretch their abilities to the full.

Now that education is expected of all up to eighteen, it is also important to discuss whether local authorities should have similar powers over the 16-18 age-group and education? This would include further education colleges and the 14-18 sector and studio schools and UTCs that might be a bit of anomaly under some readings of the new clauses in the 2023 Act? Hopefully, some one will tell me that I am wrong on this point.

Here is Section 62

62Power to direct admission: extension to Academies

(1) In section 96(8) of the School Standards and Framework Act 1998 (schools subject to local authority powers to direct admission of individual pupils), for “a maintained school” substitute “—

(a)a maintained school, or

(b)an Academy school, other than one specially organised to make special educational provision for pupils with special educational needs.”

So, my thanks to all that have made this change come about. It has taken too long, but hopefully it will help to reduce the break in schooling for those taken into care that have to move school because of the distance of their new placement from their existing school.

There is much else in the Act to welcome, but where is the Curriculum Review and the need to teach citizenship now the government ahs reaffirmed its intention to reduce the voting age from 18 to 16?

Will teachers vote to take industrial action?

The BBC are running a story that suggests a teacher association: the NEU will ask its members about whether they support industrial action that could, presumably, include striking and closing schools? Teachers in England move towards striking over pay – BBC News

My guess is that their members will vote for action: at least in the secondary schools. Whether the larger number of NEU members in primary schools will do so, might be more uncertain. Here’s a link to an early post of this blog, way back from February 2013 February | 2013 | John Howson about what happened then.

Now, we live in different times: a Labour government; many years of pay freezes and pay rises below those in the private sector, but two relatively generous recent settlements, and the possibility of a three-year deal in even more challenging times.

Now factor in, falling rolls leading to job uncertainty in many primary schools, better recruitment to lower targets for new teachers, the need for increased spending on defence and welfare, and an electorate that will judge the government on the length of NHS waiting lists rather than what happens in schools, and the balance between expressing concerns by voting for industrial action, and actually taking action sometime in the autumn, is as the saying goes, a ‘whole different kettle of fish’.

My bet is, shake the big stick now, but think carefully about strike action in the autumn. Or perhaps persuade the government to tweak the pay offer, when it comes from the pay review body, so that both sides can claim victory.

It is interesting that this story is running 100 years after the only real General Strike in British history. This is an anniversary that, unlike Sir David Attenborough’s century, has been largely ignored by the media. I guess nobody wanted to drag it up during a period of local and state elections across the United(!) Kingdom.

One interesting fact from Thursday, is that Labour lost control of Haringey Council. They did so in the 1968 local government debacle. In that period of two-party politics, to the Conservatives. This time the outcome is more complicated. In 1968, the year of revolutions across Europe, Labour in government didn’t sack the Prime minister. Indeed, Harold Wilson led the Party into the 1970 general elections: a much closer race than the 1968 results might have predicted.

The Haringey result is interesting to me, as it meant that in 1971, I started work as a teacher in Tottenham under a Conservative administration. I don’t recall much changing when, in 1972, Labour regained control of the borough. Now the remainder of that decade was a turbulent time in British politics and not only the teachers, but also non-teaching staff. They took industrial action, leading eventually during the ‘Winter of discontent’ in 1979, to all Haringey’s schools being closed, not by the teachers, but by the caretakers going on strike. The Labour administration did not expect anyone, even church schools, to try and break that strike.  These days, with the internet, and remote schooling commonplace, such an outcome in terms of teaching and learning might be much less likely.

For a discussion of the effects in 1979 see my posts from 2020  March | 2020 | John Howson COVID-19 PM’s Suez? | John Howson and The State cannot just abandon children | John Howson and especially from February 2020 Closing schools, but not stopping education | John Howson

Discipline in schools – the latest data around suspensions and exclusions in one area

Now that the local elections are out of the way, it is time to consider other issues – However, I might blog about my thoughts about schooling when all the results have been published and considered.

Earlier this week the DfE published data for exclusion and suspensions by schools for the spring term 202425; i.e. last year. The data came along with time series data for spring terms back to before the covid pandemic, indeed, starting in 2016-2017 school-year; the spring of 2017. Create your own tables on suspensions and permanent exclusions in england – Explore education statistics – GOV.UK

It is worth recalling that during the period under review by the DfE school rolls across the secondary sector have been on the increase, mostly as a result of the earlier rise in the birthrate. Some areas, including the one under consideration have also experienced a significant housebuilding boom for most of the period under review. New housing usually means more pupils.

I looked at the data for both suspensions and exclusions for all the secondary schools in one current local authority area. All but one school are currently academies, and most have been for the whole of the time period. Some schools have changed academy trusts during the time period, and three new schools have opened during the period, and one 14-18 school has closed.

The schools already had noticeable numbers of suspensions before the covid pandemic. Since then, the numbers each year have been much higher, than before the pandemic, as shown in the chart.

The last three years for which data are available witness record numbers of suspensions, although not all schools have increased suspensions at the same rate. The range in the spring term 202425 was from one school with just 6 suspensions, to another with 291, albeit, this was one of the largest schools in the authority. However, it was not an urban school. Eight schools each recorded more than 100 suspensions in the spring term of 202425.

The picture for exclusions is much more encouraging, as can be seen on the following chart. This uses a logarithmic scale to plot both suspensions and exclusions. Exclusions across the authority have rarely exceeded ten in a spring term.

Of course, the total of suspensions for any one school can include multiple suspensions for the same pupil. The length of the spring term can also be affected by the changing date of Easter each year. This factor might have a small effect on each year’s data.

Of course, some pupils may not be ‘excluded’ at all, and hence not feature in these charts, but may be voluntarily removed to ‘home schooling’ by their parents. Whatever happens to pupils suspended or excluded, not being in school is more likely to see them become involved in a life of crime, often more serious crime than if they were in school on a regular basis.

Do some academy trusts have higher rates of suspension than other trusts among their schools? This is a challenging question to answer because it is clear that there is more likely to be a relationship between suspensions and the IDACI group in which the schools sits than the nature of the controlling MAT. However, it is clear than becoming an academy is not a panacea for solving the discipline issue of a school; at least as far as academies in this authority are concerned.  

Are suspension rates now on the way down? I hope so, but an not yet convinced that is the direction of travel. Time will tell.

David Attenborough at 100

This week the BBC has being paying tribute to Sir David Attenborough, ahead of his 100th birthday later this month. There is no doubting that Sir David has had a great deal of influence on many people through his television documentaries, at first in shades of grey, and then in colours that have improved as television screens have become ever more sophisticated in replicating the colours of the real world.

But who influenced Sir David Attenborough in his choice of career? Way back in 1997, the then Teacher Training Agency decided to commission two cinema advertisements. One, that received all the attention was called ‘talking heads’, and featured head and shoulder shots of a range of celebrities just saying a name to the camera. The trap line at the end was ‘no one forgets a good teacher’.

The other, far less well-known advertisement commissioned by the Teacher Training Agency in 1997 featured a teacher called Horace Lacey and a pupil called David Attenborough. You can see it here. Teacher Training Commercial: Horace Lacey | Catalogue | History of Advertising Trust My thanks to the History of Advertising Trust.

Both adverts were placed in cinemas, and because it was before the general use of websites and urls, postcards were placed in cinema foyers to provide the contact details for anyone interested in teaching. After all, it was impossible to write down a phone number in the dark of a cinema at the time when the advert was actually being played.

At the same time, the agency produced a famous poster with the stap line ‘the dog ate my homework. a phrase that passed into common parlance for a period of time.

After a few years, advertisements for teaching as a career started to reappear on TV screens, albeit at the wrong time of year to make any significant short-term difference to recruitment. I made an oblique comment about the effects of TV advertising in this post Do TV adverts work? | John Howson However, I am afraid the title is a bit of a misnomer.

So, my very best wishes to Sir David Attenborough. I hope that all the publicity surrounding his 100th birthday will help inspire the next generation of young people, and the present generation of undergraduates, to take up teaching as a career.  I also hope that the attention to Sir David’s birthday also encourages us to honour the memory of Horace Lacy, and countless hundreds of thousands of other teachers like him that have inspired their pupils down the generations.

Thank a teacher, it is an inspiring job that is like no other. And, although I may not have inspired many of my pupils, I did recognise those around me, both in school and higher education that changed lives and careers. My personal thanks to them.

School Transport- who pays for diesel’s price increases?

Since the start of the conflict in the Middle East, the price of diesel at the pumps has increased from around £1.42 – the average price before the conflict – to £1.90 at the start of May What is happening to UK fuel and petrol prices? – BBC News By comparison, at the height of the concerns over the Ukraine conflict, the price of diesel peaked at just under £2 per litre.

So, could the pump price charged for diesel fuel in 2026 go even higher than the price witnessed in 2022? As I write this, on the 3rd May 2026, it seems quite possible, and even probably that this will be the case: hopefully, I am proved wrong.

The increase in the price of fuel, the rise in the minimum wage, and other cost pressures due to inflation still being above the Bank of England’s target figure of 2%, will be bad news for those local authorities with significant transport bill for conveying pupils to and from schools, either for SEND or because their pupils live in rural areas beyond the two or three mile distance, historically seen as the distance where it is reasonable for parents to pay to ensure children attend their nearest school.  

Although fuel costs are not as high a proportion of total transport costs as are wages, an increase of a third in fuel prices is going to have an impact on transport contracts being negotiated for the new school year starting in September 2026.

A council with a £40 million education transport bill, not unreasonable for a large rural shire county, might see a 5-10% extra charge. This translated to £2-4 million extra across a council’s financial year, and likely even more across a school-year if prices continue to rise further.

 The risk is that some operators might well collapse under the price increase, especially if they are in fixed price contracts with a local authority, leaving a seller’s market, as operators will know that pupils must be transported to school.  Could this outcome drive prices even higher?

How will local authorities cope with these prices increases? Those with reserves, will draw on them until the next round of council tax rate setting in February 2027. However, many local authorities don’t have large reserves, and with local government reorganisation looming for the rural areas, running up a deficit may not be possible.

What remains is either cuts to other services or a government bailout to cover the extra cost of fuel. With social care, and adult social care especially, taking the lion’s share of the budgets of rural counties, there may be few services where cuts are possible, especially since adult social care can involve its own significant fuel costs associated with ‘care in the community’.  

Protecting services such as the youth service and the funding for under-fives could be at risk if local authorities have to bear the brunt of transport related cost increases, especially since the war started just at the wrong time for local government financing, when budgets for 2026-27 were already finalised.

With so many different political parties now in charge, it will be interesting to see how they approach this problem, and who is asked to take the consequences.

Labour market for music teachers: update to end of April 2026

Regular readers will know that I am tracking two parts of the labour market for teachers in state schools across England during the 2025-26 school-year: vacancies for headteachers and vacancies for teachers and middle leaders of music.

Regular readers of this blog will also know that one of the reasons that I selected music as my subject to track was the government’s removal of the training bursary for those applying for postgraduate teacher preparation courses starting in the autumn of 2026.

By tracking vacancies this year, I have a baseline for next year, if, as seems likely, the removal of the bursary reduces interest in teaching music. However, the government has also slashed its published number of trainees needed – see ITT Offers – public money being wasted? | John Howson and my more recent post on the situation after the report on April offers was published.

Anyway, back to the update on published vacancies for teachers of music, and how these vacancies compare with the expected output from this year’s preparation courses.

By the end of April, I had recorded some 389 vacancies for teachers of music. 86 of these were for promoted posts, with an allowance attached. It could be assumed that these vacancies were not intended for teachers straight out of their preparation courses. However, in some smaller secondary schools, this might be the only full—time post and include responsibility for choirs, orchestras and ensembles. However, for the purpose of this exercise, such posts have been eliminated.

After removing the promoted posts, this leaves some 303 vacancies suitable for new entrants into the teaching profession advertised between January and the end of April 2026.

The DfE’s ITT census recorded some 367 trainees on preparation courses in December 2025; mostly for entry into the labour market in September 2026. Assuming all 367 entered the labour market for teachers in state schools, there are still sufficient to fill another 64 vacancies.

However, we know that not all trainees last the courses, and of those that complete the course, not all start teaching in state schools. Some entre the private sector; some further education; some music services and some don’t enter teaching at all.

As a result, the chart shows the remaining trainees available if 10% and 20% of trainees aren’t available to state schools. This approach reduces the remaining number of trainees to little more than 50 trainees. With around 75 vacancies a month so far in 2026, if May’s vacancies follow the pattern of the first four months of 2026, then the remaining total of trainees will be exhausted before the end of May, and resignation deadline day.

Of course, not all basic vacancies are filled by new entrants from teacher preparation courses: some are filled by returners – we can ignore school switchers as we can assume that leaving one school to fill a similar vacancy at another school is neutral in terms of jobs. However, if the move is for promotion, the there is a new vacancy.

Returners would need to fill around 30% of vacancies across the whole year – they are generally the only source of teachers for January appointments, so for September it looks as if schools will struggle to fill any late appointment resulting from resignations close to the 31st May deadline.  However, the picture will be clearer at the time of next month’s update.

Finally, although I do not track vacancies posted by private schools, both in England and abroad, I do survey the market. Generally, this market has twice as many vacancies as posted in any one month by schools in England.

One wonders whether the current cohort of new graduates might have missed out on gap year travelling because of the after-shocks from the covid pandemic and might, therefore be more willing to teach overseas? This has the advantage of not losing income to student loan repayment, and the bursary isn’t repayable.

On the negative side, the conflict in the Middle East may well be deterring some teachers from working in that part of the world, and may have increased the number of returners once more seeking a teaching post in England. We shall see.