New academy guidance on executive pay controls

The DfE has published guidance to help academy trusts apply new executive pay controls. From 1 October 2026, the Academy Trust Handbook will introduce a new a requirement for academy trusts.

The extended guidance covers the measures now in force to limit pay increases along with a £174,000 cap for new appointments. Executive remuneration must not increase at a faster rate than that of the academy trust’s teachers, unless there is a clear justification for it to do so. Where the academy trust considers there is a justification, it must seek approval in advance from the DfE. This applies to executives and teachers within a given trust rather than across the sector.

The National Governance Association (NGA) believe some details within DfE guidance remain unclear and they will be working with the Department to ensure trust boards have the clarity they need.