Academy Trust Handbook 2025: What’s Changed & Why It Matters

On 25 June 2025, the Department for Education (DfE) published the updated Academy Trust Handbook 2025, which will came into effect for all academy trusts across England from 1 September 2025. This essential document continues to serve as the statutory backbone for financial governance, operational oversight, and strategic leadership within the academy sector.

What's New in the 2025 Edition

1.        Six Core Digital & Tech Standards by 2030

• Trusts must now actively work towards meeting six non-negotiable digital and technology standards by 2030: broadband, network switching, wireless access, cybersecurity, content filtering/monitoring, and digital leadership.

• Previously, trusts were merely advised to refer to these benchmarks; now, understanding and progression are mandatory.

2.        Ban on Paying Ransomware Demands

• A clear prohibition has been introduced: trusts must not pay ransomware demands, reflecting concerns about the efficacy and repeat risk posed by such payments.

• Trusts are encouraged to strengthen their cyber-incident response, ensuring robust resilience planning.

3.        Executive Pay Transparency & Accountability

• The handbook now mandates that boards set defensible executive remuneration—with decisions documented in a clear pay policy and “published where employee benefits exceed £100,000”.

• The board’s process must reflect defensibility, tax compliance via PAYE, and readiness for external scrutiny.

4.        Internal Scrutiny Tied to Latest Audited Accounts

• The £50 million threshold triggering an audit and risk committee or internal audit requirement is now tied to the most recent audited accounts, preventing manipulation via lagged reporting.

  
  

5.        Procurement Aligned with New Public Procurement Act

• Updated guidance reflects the Procurement Act 2023, raising the bar on transparency, fairness, and competitive tendering for contracts, particularly those over £30k.

6.        Estate Management & Sustainability Emphasis

• The handbook now underscores governance responsibility for safe, well-maintained estates, with pointers to guidance on RAAC, asbestos, and lifecycle planning.

• Trusts are also encouraged to draft climate action plans by 2025 and adopt sustainability as a strategic priority.

7.        Sharpened Accounting Officer Duties

• Definitions of regularity, propriety, value for money, and feasibility are updated in line with Managing Public Money.

• Accounting officers are reminded of their duty to raise concerns in writing if board decisions conflict with the trust’s legal or ethical responsibilities.

8.        DfE Powers: Refunds and Notice to Improve (NtI) Changes

• The DfE now explicitly reserves the right to recover funds where evidence of fraud or irregularity exists.

• The handbook removes educational performance as a sole reason for issuing a Notice to Improve; NtIs now focus on financial governance shortcomings.

Why These Changes Matter

Future-Proofing Governance & Compliance

The digital and cyber requirements mark a shift from passive reference to active accountability—pushing trusts toward strategic tech resilience and safeguarding in an increasingly digital landscape.

Enhancing Transparency & Public Trust

Strengthened executive pay policies and procurement methods reflect public demand for transparency and ethical stewardship of public funds, reinforcing trust in academy governance.

Building Operational Resilience

Estate management and sustainability integration highlight long-term stewardship, positioning trusts to better manage risks, environmental responsibilities, and public expectations.

Clarifying Role Responsibilities

Updated accounting officer duties and DfE oversight powers provide clearer accountability frameworks, making governance more robust and compliant with national financial expectations.

The Academy Trust Handbook 2025 may not feel like a seismic overhaul—but its focused refinements mark a clear direction toward strategic governance: tech readiness, ethical transparency, estate resilience, and sharper accountability. For academy trusts, embracing these amendments is not just about compliance—it’s about building trust, preparing for future risks, and operating with integrity at the heart.