The 2025 Academies Benchmark Report has now been published

The 13th annual benchmark report has analysed the financial data of over 260 Trusts (representing almost 2,300 schools) providing essential information on the financial performance and key financial trends of the academy sector.

Last year they reported that there had been an overall decline in the financial performance and position of the sector compared to 2022. In the current year, whilst results have been more favourable than budgeted, there has been a continuation of the downward trend that was evident last year and the squeeze on sector finances continues pushing nearly 60% of trusts into financial deficits.

It does appear to be the case that the size of the trust continues to be a key factor in financial performance as the multi-academy trusts (MATs) have returned, on average, a surplus on their free reserves this year. Small MATs have just about managed to balance the books, whilst single academy trusts (SATs) have reported free reserve deficits.

Primary SATs have now incurred deficits in each of the last three years and many will be coming to the realisation that they cannot sustain many more losses. While the larger MATs appear to have been the strongest performers, it should be said that these results are effectively only break even and that the sector as a whole has felt financial strain this year.

The number of Academies now part of a MAT continues to rise and now stands at 90%. Trust leaders are quite rightly continuing to regard financial sustainability as their number one risk. Against the financial backdrop of the performance in 2023/24, changes in the political and regulatory landscape facing the sector have only created further uncertainty that the sector must once again overcome.