11th Annual Kreston Academies Benchmark Report
February 10, 2023
The Kreston Academies Benchmark Report shows escalating anxieties among academy trusts regarding the future of their financial health. Although there are considerable surpluses in the sector, per-student income has increased by a mere 1% against inflation rates of over 10%, higher energy costs, and teacher pay increases. Consequently, 88% of trusts anticipate future decreases in surpluses and reserves.
Kreston Academies Benchmark highlights include:
The sector’s financial surpluses are lower than in the previous record-breaking year. However, a substantial number of single academy trusts (SATs) in the primary sector (47%) reported deficits for 2021/22, indicating that larger trusts have tremendous fiscal success.
This is the first time primary SATs have seen average in-year deficits in four years. This is due to a few primary SATs with huge deficits caused by capital and maintenance expenditures that pulled down the overall average.
The Office of National Statistics (ONS) has reported a 30% rise in capital spending compared to 2022. This is due to a predicted drop of at least 12% in primary and nursery school attendees in the next 6 years, resulting in a 7.4% decrease in MAT revenue reserves per pupil from £802 to £743. Despite this, larger trusts with more than 7,500 pupils still achieve surpluses similar to 2021. 70% of MATs expect growth by 2023/24, with 5% expecting growth of 7+ schools for both 2023 and 2024.
There was a noticeable decrease in grant funding for academies that moved trust in 2021/22, with only 23% receiving it compared to 63% back in 2014/15. The total level of funding was £1.73m, significantly lower than the £3.16m seen last year.
If you are interested in the Kreston Academies Benchmark Report, have a UK-based academy trust, and would like accounting advice and support, please get in touch with one of our members here.
