Academies Trust Handbook 2026 released - what’s new?

The Department for Education (DfE) have published the latest Academy Trust Handbook (ATH) 2026.

The ATH 2026 is effective from 1 October 2026 and replaces the 2025 version from this date. This poses a rather bizarre position for trusts where for one month of the year they will still be required to be compliant with the previous Handbook.

Our advice to trusts would be to aim to be compliant by 1 September as in previous years. The fact that the DfE have created this rather strange position is only continuing to backup the feeling they are not in touch with the day to day running of education.

A full copy of the ATH can be accessed here. There continues to be no printable PDF version available – an ongoing sign of the DfE looking to be more sustainable.

As ever, there continue to be some key changes, and it is important that academy trusts are aware of these as we head into another academic year. To aid trusts with the important new “Musts”, we have clearly highlighted these throughout our article.

So what are the changes to note heading into 2026-27?

Sustainability

Talking about being sustainable, the ATH continues to push certain elements that are closely aligned to climate change. This year the focus is around energy contracts and Electric Vehicle (EV) schemes.

***NEW*** Firstly, the ATH now states that trusts must use the DfE Energy for Schools service OR a DfE-approved Energy deal. This will only apply when energy contracts are renewed (paragraph 2.29).

Secondly, we have finally had an update to EV schemes – they are back and do not need prior DfE approval. But there’s always a catch. You do not need prior DfE approval if:

• the trust has comprehensive mitigations in place to ensure no cost or liability falls on the trust if an employee does not fulfil their contractual obligations with the scheme provider
• the trust is not under a Notice to improve (NtI)

***NEW*** If you choose to offer an EV scheme, then you must clearly document your comprehensive mitigations. In addition, you must follow the EV salary sacrifice guidance from the DfE (paragraph 2.37).

Roles and responsibilities

Those working in the sector will be very aware of potential new SEND reforms that are coming, plus the DfE’s requirements for all trusts to develop and publish an inclusion strategy on their website by 31 December 2026. The ATH now takes note of this and introduces additional details in paragraphs 1.16 to 1.20.

***NEW*** Trusts must comply with their legal duties, including those relating to safeguarding, SEND, admissions and place planning.

***NEW*** Trusts must comply with their legal duties to cooperate with local authorities and other agencies where relevant. Trusts should work constructively with local authorities and other partners in areas where local authorities hold legal responsibilities, to support effective local arrangements and improve outcomes for pupils.

There is also an expectation (“should”) for trusts to have a designated trustee, or committee, to support oversight of inclusion, including SEND.

Trusts will need to therefore consider their governance arrangements at the start of a new academic year.

The ATH flags expectations around meeting the DfE’s digital and technology standards by 2030, but this was introduced last year (paragraph 1.21). The main change is highlighting the expectation for trusts to already be meeting the filtering and monitoring standards as set out in Keeping Children Safe in Education (KCSIE). Trusts should therefore consider if they are currently compliant or not.

Finance training is now an expectation for those in governance positions (paragraph 1.31). This expectation is not just for the board, but also local committee and governing bodies where some financial responsibilities lie. It will be important for trusts to check their Schemes of Delegation to ensure that those with these responsibilities have the appropriate training and knowledge around finance. If you would like some finance training, this is something PLR Advisory can assist with - please get in touch.

***NEW*** CFOs of large trusts (more than 3,000 pupils) have previously been expected to hold an accountancy qualification. Paragraph 1.46 now states that from 1 October 2026, any such trusts should specify in adverts that the person should be qualified or a member of a professional accountancy body. This then becomes a must from 1 September 2027. If you do not appoint a person with such a qualification, then the DfE must be informed in advance including an explanation of why the trust is not appointing a qualified accountant or holder of the CIPFA level 7 qualification.

Financial Requirements

Many trusts are using integrated curriculum and financial planning across their schools, which the DfE has previously encouraged. That expectation has now slightly increased to “should” (paragraph 2.13).

***NEW*** Accounting Officers must now notify the trust board when there is a risk the trust is no longer a going concern so that trustees can take the necessary action, including notifying the DfE (paragraph 2.21).

***NEW*** Trusts must now consider DfE opportunities when making purchasing decisions for goods and services and record their decision-making (paragraph 2.27). What are DfE opportunities? Essentially the ‘Get help buying for schools’ service – a real push towards using their frameworks, which are not always the cheapest. It will be important that trusts carefully document their decision-making when not using this service, especially when it comes to the following services:

• Banking and finance
• Energy
• Catering
• ICT
• Legal services
• Professional services
• Facilities management services
• School transport
• Staffing solutions

***NEW*** A change many in the sector were already aware of is that trusts must use the Government Commercial Agency agreement for supply staffing (paragraph 2.28). Our article ‘A major change to how academy trusts must source supply staff’ covers this in further detail.

***NEW*** Another new framework which must be used is the DfE's Management Information System (MIS) framework (paragraph 2.30). Trusts are expected to ensure all MIS contracts are aligned with the DfE’s framework by September 2027. If a trust renews before this date, any contract extension or replacement must be for no more than 12 months and act as a transitional arrangement. Where a contract extends beyond 1 September 2027, trusts must not use extension options that delay transition. Trusts must use the DfE MIS framework when awarding their next full-term MIS contract. If a trust cannot reasonably award a contract of 12 months or less, it may proceed only where the supplier agrees to the DfE’s latest MIS contractual principles, available in Get help buying for schools.

Whatever happened to “academy freedoms”? It appears trusts are being pushed more towards government contracts that do not always represent value for money due to the costs suppliers in these schemes incur to be within them. The only way to avoid them is to heavily document your reasons – not great for managing workloads.

***NEW*** Another change many knew was coming is the DfE approval required on new appointments where remuneration exceeds £174,000, or the pro rata equivalent for part-time staff, or performance-related pay above £25,000. This approval must be obtained before the post is advertised (paragraph 2.34).

***NEW*** In addition, executive remuneration must not increase at a faster rate than that of the academy trust’s teachers, unless there is a clear justification for it to do so. Where the academy trust considers there is a justification, it must seek approval in advance from the DfE (paragraph 2.33). So execs' pay will be expected to be capped at the recent 3.5% and 3% rise announcements, unless the DfE back your justification.

***NEW*** Alternative pensions schemes to the Teachers’ Pension Scheme and Local Government Pension Scheme must have DfE approval before any communications are made to staff. Compliance with both existing schemes is a must (paragraphs 2.39 and 2.40).

Delegated authorities

There is some tidying up around severance payment rules in paragraphs 5.7 to 5.14. Those trusts considering these types of payments should carefully read and consider this section before making any decisions or actions to ensure compliance.

***NEW*** Trusts now have a new website publication to meet by 31 January each year. This will only apply to multi-academy trusts and will accompany their annual accounts. A summary statement outlining how funds are distributed across schools in the trust must be published. The information should match that set out in the annual accounts notes (Disclosure of central services and Funds) and include a summary overview of the themes listed in the DfE example (paragraph 5.32).

This appears to be another increase in workload. Many trusts clearly publish these details in their financial statements, so it makes no sense to publish these further when it is mainly a repeat disclosure. If there are trusts who don’t, and the DfE almost demands this, then audit firms should be flagging this in their reports.

Regulator and intervention

***NEW*** Where a trust is in breach of any duty imposed under its funding agreement, the Secretary of State may issue a direction to the trust specifying the required action to rectify the situation and the required timeframe. The trust must comply with the direction. If a trust does not comply with the direction, the Secretary of State may seek enforcement by a court order (paragraph 6.17).

The “Musts”

The ATH continues to publish (in Excel format) a separate schedule of the “musts” in the form of a handy checklist for trusts.

This remains a useful tool, and one trust boards should review annually to ensure compliance is met or, at the very least, is being worked towards.

Summary

After several years of minimal change, this year sees several changes introduced that are mandatory compliance. Many appear to us to be unreasonable and a clear increase in workload for Trusts with minimal benefit. Academy freedoms are seeminngly being eroded.

As always, PLR Advisory recommends that the ATH 2026 is read by all those involved in making decisions on behalf of the trust – in particular, the new “musts” checklist; otherwise, are you demonstrating strong governance and financial management? 

In addition, we would urge trusts to consider a compliance review from your internal auditor at some point next year to ensure the new rules are being followed.

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