Kreston UK Academies Benchmark Report 2025

The 13th annual Kreston UK Academies Benchmark Report published today has shown cost pressures have outstripped income in the academy trust sector for two consecutive years, leaving little room for financial manoeuvre.

This year the report includes over 260 Trusts representing almost 2,300 schools and has been conducted by the UK Academies Group of Kreston Global - the global network of independent accountancy firms.

The benchmark report concludes that the majority of trusts (81%) indicated that their biggest financial challenge is the cost of teaching and support staff. A key contributing factor is government funding for teachers' pay, which has not kept pace with rising costs. Growing demand, coupled with significant budget deficits, add further financial pressure on the sector. Similarly, single academy trusts have been hit hardest by cost rises, where staff costs as a percentage of revenue income exceeded 75% for the first time since 2022 in both primary and secondary schools.

There are some positives to draw from the report which demonstrate the sheer resilience of the academies trust sector. Increased investment income has been generated in some trusts that have actively sought out more favourable banking interest rates for their cash balances. Some trusts have made over £1m in the year 2023/24, with increased financial returns on surplus cash deposits and managing multiple savings accounts to spread risk. Only around 12% of trusts listed the cost of heat and light among their top three financial concerns as prices have fallen and schools continued to reduce their carbon footprint.

To download a free copy of the report please click here.

We are running a webinar on Thursday 28 February 2025 to look deeper into the detail of the report and issues faced by Academies and Multi-Academy Trusts to provide you with insights into what 2025 may have to hold for the sector. We are committed to the sector and look forward to continuing our involvement in it during 2025 and beyond, so that you can maximise your school's potential.

If you would like to attend our webinar, please click here to register.

If you would like more information then please contact one of our Education team members here.