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

Posted on May 22, 2026 by John Howson

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.

Are rainy day savings by schools affecting outcomes?

Posted on April 30, 2026 by John Howson

Is there any relationship between the reserves a school holds and the outcomes for its pupils? One thesis might be that schools that spend more of their revenue budgets, and don’t add to their reserves each year, do better for their pupils than those schools more concerned with ‘saving for a rainy day’ or adding to their reserves for some other reason. Of course, this thesis only really works with a funding model that funds schools appropriately. Nevertheless, it is question worth asking.

This post looks at the evidence around the relationship between the quoted reserves of the primary schools across three multi-academy trusts (MATs) of differing sizes. The schools are in a range of different locations, and have a range of pupil numbers, but are all located within the boundaries of a single local authority.

KS2 achievement Percentage %	No of KS2 Pupils	24/25 reserves per KS2 pupil
42	30	£ 24,333
69	16	£ 16,313
64	22	£ 16,273
36	25	£ 14,480
27	11	£ 12,364
91	11	£ 12,249
47	15	£ 10,600
34	29	£ 10,172
69	13	£ 10,077
50	16	£ 9,375
50	16	£ 8,688
33	27	£ 7,667
56	45	£ 7,267
56	48	£ 6,896
69	16	£ 6,813
69	39	£ 6,692
93	15	£ 5,933
58	31	£ 5,484
83	18	£ 5,287
82	11	£ 5,091
72	18	£ 5,000
65	31	£ 4,258
50	22	£ 4,182
55	31	£ 4,129
48	21	£ 4,098
73	59	£ 3,847
50	28	£ 3,536
73	15	£ 3,467
75	28	£ 3,214
48	27	£ 3,111
70	61	£ 2,738
67	58	£ 2,535
91	23	£ 2,531
56	57	£ 2,509
83	23	£ 2,087
59	44	£ 1,864
71	31	£ 1,677
57	70	£ 1,614
92	12	£ 1,362
52	60	£ 950
76	29	£ 862
72	60	£ 700
56	18	£ 611
45	29	-£ 1,655
86	14	-£ 1,714
79	19	-£ 2,474
58	31	-£ 3,084
86	7	-£ 3,295
89	38	-£ 4,756
53	15	-£ 8,667
48	25	-£ 11,040

The range of reserves, as taken from the reserves in the accounts filed at Companies House by the MAT, vary per KS2 pupil from a high of £24,333 per pupil, to £611 for schools with those schools with reserves. Eight schools are shown as having deficits

Leaving aside, at this point for schools with deficits, it is worth comparing the other schools in the table with the average outcome for all pupils in the local authority of 62%.

The schools in the table, are of different sizes. In the schools in the table the range of KS2 pupils extends from schools with just 11 KS2 pupils, to one with 70 KS2 pupils. Where a school has a stable intake, the KS2 reserves per pupil is easy to spread across the schools, although some schools still start pupils, at age 5, many at age 4 and a few even younger and with a nursery class, and this may make a difference to reserves.

In this era of falling rolls, allied to parental choice, some school’s KS2 numbers would overestimate the school population if grossed up across all year groups. For that reason, I have just used the KS2 pupil number for this exercise.

Six of the top 10 schools with the highest reserves per pupil had achievements below the local authority level of 62%. This compares with four of the ten schools with the lowest reserves (not with a deficit).

It is interesting to note that one MAT has 12 schools in the top 15 schools with the largest reserves per KS2 pupil, and 15 in the top 20 schools. Of the other two MATS, one has three schools in the top 20 schools by reserves per KS2 pupil, and the other just two schools.

I suspect that both these MATs more actively work with their schools than the other MAT in terms of making use of their cashflow. All the schools in this latter MAT in the top 20 by reserves are also well above average for performance levels. The position is more mixed for the other smaller MAT, but I suspect its policy is evolving as it has acquired more schools.

How much does parental choice, and falling rolls play a part in determining reserves? Certainly, primary schools that have no spare places across all year groups will do better with a funding model that is weighted towards pupil numbers than schools unable to make full classes even by mixing year groups together. In another post, I will look at school size and reserves.

It would be interesting to conduct this exercise across all schools in a local authority. However, pooling of reserves by some MATs, and a lack of visibility for the reserves of maintained and voluntary schools makes that task effectively impossible.

No doubt the DfE could ask the question about why there is so much difference in reserves per pupil between schools, and could ask if some schools could achieve more for their pupils if they kept less in their reserves? School governors, MAT trustees and the teacher associations, as well as local politicians, might also like to ask this question.

Highest paid staff in academies: one LA area

Posted on March 10, 2026 by John Howson

Each year academies and MATs are required to publish their accounts. These accounts include a table showing the salary bands for staff paid more than £60,000. Each year, I track the changes for academies and MATs across one geographical area. Sadly, the table isn’t complete for 2025, as a small number of schools and MATs still have not seen their account for 2024/25 published at Companies House.

MAT	highest salary band in annual accounts
	SALARIES 2024	2025	difference
1	£90,000	£100,000	£10,000	11%
2	£140,000	£151,000	£11,000	8%
3	£140,000	£160,000	£20,000	14%
4	£180,000		£0	0%
5	£260,000	£270,000	£10,000	4%
6	£110,000	£120,000	£10,000	9%
7	£90,000		£0	0%
8	£120,000	£140,000	£20,000	17%
9	£130,000	£130,000	£0	0%
10	£170,000	£250,000	£80,000	47%
11	£90,000	£100,000	£10,000	11%
12	£150,000	£170,000	£20,000	13%
13	£90,000	£110,000	£20,000	22%
14	£120,000	£120,000	£0	0%
15	£130,000	£150,000	£20,000	15%
16	£140,000		£0	0%
17	£160,000	£190,000	£30,000	19%
18	£120,000		£0	0%
19	£190,000	£200,000	£10,000	5%
20	£90,000		£0	0%
21	£120,000		£0	0%
22	£130,000	£120,000	-£10,000	-8%
23	£140,000		£0	0%
24	£140,000	£150,000	£10,000	7%
25	£190,000	£210,000	£20,000	11%
26	£150,000	£160,000	£10,000	7%

In 2023/24 the bands for highest paid staff member in an academy or MAT in this group of academies ranged from £90-100,00 to £260,000-£270,000. In 2024/25 the range, so far, is from £100,000-£110,000 to £270,000-£280,000.

Ten of the 26 reporting bodies (there were 17 with details for both years) saw an increase of more than 10% in the band in which their highest earner was placed. This took at least six of the reporting bodies into a band above that of the salary of the Director of Children’s Services in the authority.

Of course, the salary does not reveal the number and size and complexity of schools within the MAT, not all of which are within the geographical area of the local authority where the schools studied are located. However, there does seem to be an element of the Wild West and Frontierland in general around the issue of salaries for senior leaders.

This lack of control over public spending by the DfE mirrors a long-standing refusal to grasp the nettle of what is an Executive Headteacher, and how should they be remunerated.

If the direction of travel, foreshadowed in the recent White Paper comes about, and all schools become academies, then the DfE will be directly responsible for all schools. If such a situation comes about, then there will need to be clear rules about how much freedom over the spending of public money should be allowed.

Regiments don’t bid up the pay of their colonels, and the salaries for most public sector jobs are not subject to the vagaries of the market: it’s time to look again at how senior staff in the school sector are paid.

Is it justifiable to pay Chief Executives of MATs more than Directors of Children’s Services? Should there be a book of some colour that Trustees of MATs should consult when deciding pay and conditions, and other employment matters. Or should the market remain the deciding factor in deciding the employment rights of the leaders of our state schools in England?

Fine the accountants

Posted on March 9, 2026 by John Howson

Both stand-alone academies and Multi Academy Trusts use private sector accountants to audit their accounts. Each year, a number of MATs and academies are tardy in publishing their accounts at Companies House, where anyone can view the school or MATs handling of public money.

In my experience, it is the same MATs and schools that keep everyone waiting each year and this delay prevents any useful analysis of how schools are using their funds in particular geographical areas.

As usual, I am still waiting to see the accounts for seven sets of accounts for the schools in the geographical area where I track all non-community schools. These missing accounts are mostly the accounts from the same set of schools that were slow in appearing last year and the year before.

I think it is high time that the DfE, now responsibly directly for the funding of academies after the closure of the EFSA, takes some action to ensure all accounts, save those where there are legitimate queries, are posted by the end of January each year. That’s five months after the end of the accounting year, and should provide sufficient time for all accounts to be prepared.

How to deal with those accountants that don’t file by the required date: fine them. The notion of fining for late delivery of documents is well known and accepted. After all, HMRC will happily fine anyone not delivering their tax return by the due date, so why not fine private sector accountants for not filing these accounts on time.

The consequences would be that either the fine was passed on to the school or MAT or the accountants declined to continue handling the accounts in future years. Either way, the fine should help to instal financial discipline in those schools in the non-community part of the state school sector that are either being ignoring or possibly even flaunted the deadlines at present.

With the recent White Paper once again raising the spectre of all schools becoming academies – one wonders how foundation Schools view that prospect – installing financial discipline from day one should be something the National Audit Office needs to confirm with the DfE is not just a nice thing to have, but a necessity. The NAO might well decide to qualify the DfE’s accounts if it cannot see the accounts for all directly funded state schools within the prescribed time frame.

In my next post, I will consider how salaries for the top earners in MATs within one area have changed between the 2024 and 2025 accounts. With secondary schools now regularly advertising their headship with a starting salary of more than £100,000, and some on even more than £150,000, it is important to know whether Chief Executives of MATs, and executive headteachers are now regularly earning more than the Directors’ of Children’s Service in local authorities.

I guess that they are also earning more than the civil servants that have the ultimate power over the school sector. One wonders what should be the multiple between the salary of the lowest full-time worker in a school and the headteacher? In many case, it cases the multiple is now more than a factor of ten, between the lowest and highest paid staff members in a school: is this too great a gap?

Trends in academy accounts

Posted on January 15, 2026 by John Howson

The 2024-25 accounts for academy trusts, covering the year up to the 31^st August 2025, are now being posted at Companies House, for anyone to view. Not all Trusts have yet published their accounts. Some Trusts are large and complex, and others may not want to be in the first groups that might draw attention to their results.

This analysis is for 86 schools in one geographical area, and where the school has been in the Trust for at least two reporting periods. Two indicators are considered: the pay of the highest-ranking employee – often the Chief Executive, but in single academy trusts, normally it is the headteacher, and changes in declared reserves held by the school. This latter indicator is complicated, as some MATs pool reserves, while all others hold both reserves at the school level and for central services.

Salary Trends

So far, of the 13 Trusts reporting, there have been no really significant changes. The highest salary band reported band was £200,000-210,000, up by £10,000, the same increase of £10,000 as seen in 5 other trusts; one trust saw a £10,000 decrease; two trusts no change, and four increases in the £20,000 range. The lowest salary for the year was £100,000, for a trust with four schools.

Trusts with headquarters outside the geographical area tended to have higher salary bands for their highest paid employee than those headquartered in the local area. This might take into account the complexity of London weightings for salaries.

Changes in reserves

Here, two-year’s worth of data is available for 72 of the 86 schools in the area. The other 14 schools changed trusts, so the data for the two years is incomplete. Of the 72 schools with data for both years:

29 ended the 2025 reporting period with a deficit

43 ended with reserves

Of those schools in deficit at the end of the reporting period

14 increased their deficits over the year

5 schools went from surplus to deficit

Of schools with reserves

10 reduced the amounts of their reserves.

The other 33 increased their reserves.

The largest deficit reported in 2025 account, so far is £1,060,000 – an increase of £232,000 in one year, or more than 20%.

The largest reported surplus held by a school was £2,641,000 – up by £290,000 over the year. Another school in a MAT, but located outside the area reviewed, also had a balance of £2,400,000.

Comment

From the data on salaries, it seems that seven MATs had increases to their salary bands for the highest paid employee that were less than 10%; one MAT saw the incoming employee on a lower band than their predecessor. Five had increases in the band of the highest paid employee of more than 10%.

Four of the MATs surveyed paid their highest paid employee in a band above the salary of the local authority’s Director of Children’s Services. This is not surprising, since nationally, the highest starting salary for a headteacher in an advertised vacancy in 2026 has been £123,000.

On the issue of reserves, some schools are facing pressures while others are still adding to their reserves. I have always maintained that revenue funding should be spent in the year in which was provided, including up to 10% for a sensible reserve, based upon the profile of the past five years of expenditure where the reserve is not excessive.

Why do schools hold more than £2 million pounds of public money in their reserves? Schools in deficit, often seem to struggle to clear their deficit, and if they don’t attract pupils, then it is a challenge to ever return to a surplus without damaging the education of their pupils.

I will return to this topic when I have processed the data from the remaining MATs yet to file their accounts.

John Howson

Education and the numbers that affect what happens

Tag Archives: MAT accounts