Half of MATs worry about finances

Almost half (48 per cent) of multi-academy trusts (MATs) say their trust is financially vulnerable, with 43 per cent of trusts forecasting an in-year deficit for 2024-2025. This is one of the many findings from the MAT CFO Insights Survey 2025, devised by IMP Software between May and June 2025.

This comes despite 78 per cent of MAT representatives rating their trust’s general financial position as healthy or very health, with 35 per cent forecasting an in-year surplus and 22 per cent break even in 2025-25. 69 per cent of respondents aid that their forecast is better than projected at the start of the year.

But, for 2025-26, 67 per cent of respondents expect their surplus/deficit forecast to change from the current academic year, and of those 62 per cent anticipate their trust’s financial position to get worse.

The survey involved trusts of all sizes, and looked at primary, secondary and mixed trust, with 29 MATs being special or alternative, and found that 65 per cent of respondents reported that their trust has dipped into reserves over the past twelve months to cover costs. Whilst 86 per cent say this was planned at the start of the year, 88 per cent said that this was more pronounced than other years, with four out of five trusts expecting it to continue.

69 per cent of respondents said that the current funding announced for 2025-26 is not enough for their trust, with four out of five specifically describing SEND provision as not enough. Three quarters (76 per cent) need to perform capital repairs that they cannot afford.

For MAT finance leaders, the biggest struggles they are expecting in their trust in 2025-26 are: staff costs beyond funding increases (36 per cent); falling pupil numbers (28 per cent); changes to a pupil profile like increasing SEND pupils (21 per cent); and supply costs (11 per cent). Overall, the majority of responding trusts (79 per cent) can currently afford a two per cent or more teacher pay award, and just more than half (54 per cent) said stye could afford a three per cent support staff pay award.

When asked what services or provisions will have to be removed or reduced to balance their budges, should additional pay awards not be funded, respondents spoke about: staff reductions, curriculum and provision cuts, and capital and non-staff expenditure.

Will Jordan, co-founder of IMP Software said: “As was in the case in our MAT CFO Insights Survey 2024, the majority of MATs still describe their trust’s financial position as healthy or very healthy. This is undoubtedly due to the strategic approaches taken by expert MAT finance leaders to ensure their forecast is better than projected at the start of the year. However, as we look into 2025-26, change is afoot and many anticipate their financial position will worse.

“Trusts are using reserves to balance 2025-26 budgets, but these are unsustainable long-term, especially with falling pupil numbers. There remain concerns about the ability to fund pay awards. We asked MAT CFOs “Is the current funding that has been announced for 2025-26 enough for your trust?” Before the 22nd May pay award announcement, only 25 per cent said ‘Yes’, and following the announcement this only rose to 34 per cent, so whilst this additional funding is of course welcome, it is simply not enough to make a dent in the ever increasing financial struggle that MATs are facing.”

“The broader impacts being reported around rising SEND needs versus falling support capacity; larger class sizes and reduced pupil/student support services, and increased workload risks impacting staff wellbeing and educational standards, are concerning.”