Want to see iplicit in action?
If there’s one thing that schools would like to see Rachel Reeves announce this autumn, it would probably be a rise in per-pupil funding that outstrips inflation.
But in the absence of that, most finance heads would probably settle for the next best thing – a bit of certainty.
Year-on-year settlements make strategic planning for multi-academy trusts, and for all schools, extremely difficult. That’s especially true when there’s no sign of funding getting significantly more generous.
What MATs can expect
This year’s Schools and Academies Show in Birmingham starts on 19 November – exactly a week before the chancellor delivers one of the most keenly anticipated budgets ever.
She’s already delivered a speech which was seen as “rolling the pitch” for some potentially unpopular measures. Those could include breaking a manifesto pledge not to put up income tax, VAT or national insurance.
But even if taxes are raised, it doesn’t follow that education will see the spending taps turned on.
The Department for Education has indicated that schools will have to fund teachers’ pay rises in the coming years. In evidence to the School Teachers’ Review Body, ministers said a 6.5% pay rise over three years would be “appropriate” and that it would be best to weight the rise towards the end of that period. The year 2026-27 would be the time when “headroom will be most constrained at a national level”.
The department said schools would have to fund the pay rise, finding savings to do so. Savings could be achieved by “reconsidering” the composition of leadership teams, “optimising” the deployment of support staff and driving value for money from executive pay. It’s clear schools’ room for manoeuvre is going to be limited.
The pressure points
Schools are contending with financial pressures from all directions:
- The escalating cost of SEND provision has caused crises in many areas.
- Energy costs remain unpredictable.
- Many school buildings need significant investment.
- Pay awards and National Insurance rises continue to strain budgets.
How MATs can respond
MATs are already making difficult choices to try and protect frontline education spending. Among the options available are:
GAG pooling. Combining funds at MAT level and then distributing them to schools can help achieve economies of scale and support the schools with fewer resources. But it involves a balancing act. Some schools feel they lose autonomy and others fear central costs growing disproportionately. The alternative is top-slicing from school funds to provide central services. But justifying the percentage sliced from each budget can be a similarly sensitive process, with MATs under pressure to justify the level of deduction and demonstrate value for money.
Staffing decisions. This is a particularly tough option. Some MATs are merging or freezing non-core roles. Some are reluctantly planning to reduce teacher and TA numbers, consolidate classes or share specialist teachers across multiple sites. These aren't easy conversations.
Postponing capital investment. Refurbishments, expansions and even routine improvements can be put on hold until the trust can secure external grants or co-funding. Essential safety and compliance work takes priority, while everything else is deferred.
Centralising more services. Providing functions like procurement, payroll, ICT, HR, and compliance centrally can deliver efficiencies and reduces duplication. But it also intensifies the debate about fairness and autonomy between schools, particularly when cross-subsidy means stronger schools often support those facing greater challenges.
Drawing down reserves. It’s a measure that can provide temporary breathing space but it also erodes your long-term resilience. Many trusts are already forecasting reserves that sit uncomfortably low.
Cutting non-essentials. Educational trips, extracurricular programmes and curriculum enhancements are often the first to go so you can protect core teaching. New initiatives are shelved unless externally funded. But many trusts are at the point where there aren’t a lot of soft options left.
Alternative income streams. Some trusts are looking to bring in revenue through facility hire, partnerships or philanthropic grants. It’s not cost-free and sometimes the benefits aren’t transformative – but taken in conjunction with other measures, it can make a difference.
What this means for you
School finance professionals are doing remarkable work keeping schools running under intense financial pressure. The strategic decisions you're making now will shape your trust's stability for years to come.
What would genuinely help? Real-terms funding growth, multi-year certainty, targeted support for high-cost pressures and the flexibility to allocate resources where they're needed most.
Until then, it will help to have your financial data as complete, current and detailed as possible be, so you can focus relentlessly on controlling costs and staying efficient.
Want to see iplicit in action?
Book your demo and discover how iplicit can simplify your finance operations, automate manual processes, and give you real-time visibility - wherever you work.
