What’s New in the 2025 Academy Trust Handbook?

The 2025 Academy Trust Handbook has arrived — and with it, a series of important updates designed to tighten governance, strengthen financial oversight, and push academy trusts in England towards a more secure, sustainable future.

Whether you're a MAT leader, school business professional, or governance lead, it's essential to stay up to date with the latest requirements. Below, we unpack the key changes and what they could mean for your trust moving forward..

Key Updates in the 2025 Academy Trust Handbook

1. Digital Standards and Cyber Security Targets

Trusts are now expected to actively work towards meeting six core digital and technology standards by 2030, including:

• Broadband

• Network switching

• Wireless networks

• Cyber security

• Filtering

• Digital leadership and governance

This is a major shift from the 2024 guidance, which simply advised trusts to “refer” to these standards. With just 16% of schools currently meeting the benchmark, this will be a significant area of focus in the coming years, especially given the increased threat of cyber attacks across the education sector.

Crucially, the 2025 handbook now prohibits trusts from paying cyber ransom demands, highlighting the risk of repeat attacks and the lack of guarantees even if a ransom is paid. This reflects the DfE's wider agenda on data protection and cyber resilience.

2. Executive Pay: Transparency and Accountability

The updated handbook introduces clearer expectations around executive pay. Trust boards must now demonstrate that all CEO and senior leader salaries are:

• Transparent

• Proportionate

• Defensible

Pay decisions must be supported by a robust, board-approved policy and may now be directly challenged by the DfE if deemed unjustified. This moves beyond previous guidance, which only flagged pay concerns in cases of poor financial management.

3. Expanded Definition of 'Repercussive' Spending

The DfE has broadened the definition of repercussive transactions, now including any spending that might cause “additional costs to arise for other parts of government”. If expenditure could have sector-wide implications or trigger scrutiny, trusts are expected to document their rationale and seek prior approval from the DfE where necessary.

This change may be linked to the ongoing debate surrounding alternative teacher pension arrangements and wider cost reforms.

4. Changes to Notices to Improve (NtIs)

In a significant shift, educational performance will no longer be grounds for issuing a Notice to Improve. From September 2025, NtIs can only be issued on governance grounds if:

• Boards are not properly constituted

• Trustees fail to meet safeguarding duties

• The school estate is not properly maintained

This change refocuses intervention on compliance and governance rather than performance data.

5. Strengthened Procurement and Financial Oversight

The 2025 handbook places greater emphasis on value for money in procurement. Trusts must:

• Evidence how procurement decisions deliver value

• Use DfE-approved tools where possible

• Maintain robust conflict of interest protocols

• Ensure delegated authority is properly monitored

In addition, internal scrutiny thresholds will now be based on the most recent audited accounts, giving a clearer and more current picture of trust scale.

6. Estates Management and Sustainability

Trusts are encouraged to adopt more structured approaches to estates planning and safety, including:

• Ongoing compliance checks

• Strategic maintenance plans

• Sustainability and energy efficiency efforts

While not mandatory yet, trusts are also urged to appoint a sustainability lead and begin drafting a climate action plan in line with the DfE’s wider education sustainability strategy.

7. Clarified Financial Recovery Powers

The DfE has reasserted its right to recover public funds in any case of fraud or financial irregularity. This formalises existing practice and further underlines the expectation of robust financial control at trust level.

What Does This Mean for Trusts?

The 2025 Academy Trust Handbook signals a continued evolution in the DfE’s approach to trust governance. Key themes this year include:

• Greater cyber resilience

• More transparent and defensible financial decision-making

• Refined oversight powers focused on governance, not performance

• A stronger push towards long-term sustainability

Trusts would be wise not to treat the handbook as a compliance checklist, but instead as a tool for continuous improvement. With digital standards, executive pay, and estates management all in the spotlight, trust boards and leadership teams should begin planning early to ensure they meet the new expectations.

Need support interpreting the changes or aligning your trust’s practices with the 2025 Academy Trust Handbook? PAG's expert team can is always on hand to strategise and prepare for what's next. Get in touch today using our contact page.