By Chris Beaumont, Partner and Head of Academies at Clive Owen
What academies need to know.
The new academic year brings another round of financial changes for academy trusts, with the 2026/27 support staff pay award adding further pressure to already tight budgets.
The agreed National Joint Council (NJC) pay award provides a 3.3% increase from 1 April 2026 for staff covered by NJC arrangements. For trusts following NJC or Green Book terms, this means reviewing payroll costs and updating budgets and forecasts.
Importantly, the cost is not limited to salary. Higher pay can also increase employer National Insurance, pension contributions, overtime and other employment costs.
Pay awards and back pay
Trusts should ensure the 3.3% award has been correctly applied and any backdated pay from 1 April included in payroll and forecasts.
Finance teams should review which employees are covered, their pay points, incremental progression and allowances, alongside associated pension and National Insurance costs. They should also consider what needs to be accrued in the year-end financial statements.
Comparing the revised budget with actual payroll is a useful sense check. Where differences arise, trusts should understand the reasons rather than simply adjusting forecasts to make the figures balance.
Budget forecast return
A key deadline is the 2026 Budget Forecast Return (BFR), due 24 September 2026. As the BFR covers actual and forecast financial information for the next three years, realistic staffing assumptions are essential.
Forecasts should reflect actual staffing structures, recruitment plans, vacancies, pay awards and expected pupil numbers rather than simply rolling forward last year’s budget.
The 2026/27 teacher pay award is 3.5% from 1 September 2026. While the Schools Budget Support Grant (SBSG 26) provides funding towards additional costs, trusts will need to assess how much must be absorbed internally.
As the grant is paid in November but relates to teacher and support staff increases effective from different dates, an apportionment will be required. Based on calculations we have seen, accruing 20% of the grant would appear reasonable.
Trusts should also consider the reduction in employer Teachers’ Pension Scheme contributions from 28.6% to 17.6% from 1 April 2027, alongside the corresponding withdrawal of previous pension funding. In theory this should be cost neutral, although individual trusts may experience different outcomes.
Look at the whole staffing picture
Pay awards are only one part of staffing costs. Trusts should also consider pay progression, TLRs, contract changes, agency and supply costs, maternity and sickness cover, vacancies and planned restructuring.
Assumptions should reflect what is realistically likely to happen. Persistent agency costs, for example, may need to be incorporated into future forecasts rather than treated as temporary.
Other changes and deadlines
The Academy Trust Handbook 2026 takes effect on 1 October 2026, including changes relating to executive pay and special severance payments. Trusts should review internal approval processes to ensure finance, HR and governance teams understand the requirements.
Budgets should also reflect the latest General Annual Grant allocations, pupil numbers, SEND pressures, high-needs funding and other income assumptions.
Other important deadlines include submission of financial statements to the DfE by 31 December 2026 and the 2025/26 Academies Accounts Return by 26 January 2027.
What should trustees be asking?
Trustees should understand how pay and staffing changes affect the trust’s overall financial position. Key questions include whether all pay awards and employer on-costs are included, whether staffing costs are rising faster than income, which academies are forecasting deficits, whether agency costs are controlled and whether assumptions remain realistic over the next two or three years.
The key message
The answer is not simply to add 3.3% to the staffing budget. Trusts need to understand the full cost of employment, update forecasts and assess the impact on their wider financial position.
For academy leaders, finance teams and trustees, the priority is clear: understand what is changing, understand the cost and act early. This should mean fewer surprises and better informed financial decisions throughout the year.
This article is intended as general guidance for academy trusts in England and is based on information available in September 2026. Trusts should always check the latest DfE guidance and their own funding arrangements before making decisions.
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