Updated academies handbook from DfE also warns MATs about spending that could put pressure on others trusts to follow suit
Academy leaders’ pay packets are set to come under greater scrutiny after the government introduced a new rule about how they are decided.
The move follows growing criticisms about the high salaries paid to some academy trust chief executives, and concerns about the lack of transparency about how pay levels are justified.
The Academies Financial Handbook 2017 (AFH), published today by the Department for Edcuation, introduces a new section about executive pay.
Explaining the change, the document says: “We are emphasising that decisions about levels of executive pay must follow a robust evidence-based process.”
Academies overspend income by £280m
Spending on teachers has fallen, and spending on back office functions has risen, since 2011-12, DfE figures show
New government data has revealed the increasing financial pressures on academies, as their spending exceeded their income by £280 million in 2015-16.
And this gap is growing. In 2015-16, it represented 1.5 per cent of income, up from 1 per cent the year before.
However, the Department for Education document which includes the figures, Income and expenditure in academies in England 2015-16, released today, says: “This does not mean that academies are in debt, as they may have had reserve funds from which these costs were able to be met.”