In the latest release of the 2024 Academies Benchmark Report, nearly 300 Trusts, encompassing over 2,300 schools, shed light on the financial landscape of the education sector. With insights from diverse Trusts, including some of the largest MATs outside the Kreston client base, the report highlights both successes and challenges in the financial year ending August 31, 2023
Despite the initial hurdles of increased costs, including additional pay raises and energy crises, the report indicates a better-than-expected performance due to additional funding, resulting in fewer schools reporting in-year deficits. However, the big picture reveals an overall decline from the previous year, with all Trusts, except primary SATs, achieving, on average, a modest revenue surplus. Yet, 47% of Trusts are now grappling with in-year revenue deficits, signalling a financial disparity among educational institutions.
Factors contributing to these varied outcomes include differences in school contexts, funding inequalities, and varying levels of capital investment. Following the release of Academy Trust reserves guidance in November 2023, Trusts are closely examining their reserves policies, designating funds for future use. The report notes an increase in the number of Trusts in a cumulative deficit position, highlighting the challenges faced by the sector.
Energy costs have seen a substantial increase of at least 49%, while staff costs have been effectively controlled. The report reveals a rise in MATs pooling income and reserves, with 32% now engaged in the practice, allowing resources to target areas of greatest need. The number of schools being part of a MAT has increased, but the overall growth of academy schools has slowed in favour of consolidation to address financial challenges.
As the sector navigates economic and political uncertainties, the Academies Benchmark Report emphasises the crucial role schools play in shaping the future success of local communities and humanity at large.
The report underscores the resilience of the sector but also points towards ongoing challenges that schools must navigate for sustained success. Click here to read the full report.
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