Quarterly academies update from the Department of Education (DfE) - August 2026

Each week, DfE publishes information for academies on the GOV.UK website outlining the latest developments, required actions and reminders of previous communication.

Below, the Duncan & Toplis Academies Team has provided a financial round-up of key updates from June 2026 to August 2026.

June 2026 

• Capital Funding Allocations - DfE published final school condition allowances (SCA) and devolved formula capital (DFC) allocations for the financial year 2026-2027.  
• Inclusive Mainstream Fund (IMF) - DfE published the inclusive mainstream grant allocations for financial year 2026-2027, with payments to be made in early July to academies. This will help mainstream settings to deliver inclusive practice.  
• Free School Meal (FSM) - DfE announced an uplift to the FSM meal rate to £2.66 for the 2026-2027 academic year and published the UIFSM allocations for 2026-2027. From the start of the 2026-2027 academic year, all pupils from households that receive Universal Credit will be entitled to receive a free school meal. DfE also published the final UIFSM allocations for 2025-2026. 
• 16 to 19 funding 2026-2027 - DfE published details on 16 to 19 funding for 2026-2027; funding allocations are available on the DfE Document Exchange.  
• Banking for Schools - DfE updated the Buying for Schools Banking blog, highlighting that significant improvements can be made to savings returns. 
• Pupil Premium allocations - DfE confirmed the financial year 2026-2027 pupil premium allocations.  

July 2026 

• PE and Sport digital reporting - DfE announced the academic year 2025-2026 PE and Sport Premium digital expenditure report will be open until 30 September.   
• DfE Energy for Schools - Trusts with an energy contract up for renewal in the next 12 months can register for the DfE’s Energy for Schools service. The registration deadline is 15 September 2026.  
• School teachers and leaders pay increase - DfE announced that school teachers will receive a 3.5% pay increase from September 2026, followed by a 3% increase from September 2027. 
• 2026 Teachers' pay award and pension contribution adjustments - DfE announced funding for the pay award will either be delivered through the Schools Budget Support Grant (SBSG26), the early years teachers pay grant (EYTPG) or through 16 to 19 allocations - depending on the setting. From April 2027, the employer contribution rates for the teacher’s pension scheme (TPS) will decrease from 28.6% to 17.6%. Funding for schools will be reduced to reflect the decreased pension costs, with a deduction to mainstream school General Annual Grant (GAG) allocations being applied from April to August 2027. 
• Teachers’ Pensions employer portal - DfE announced that administration of the TPS will move from Capita to Tata Consulting Services (TCS). TPS state the transfer date will be 1 November 2026, and employers must register for the new TCS Employer Portal in advance. The TCS portal is scheduled to be closed between 12 and 24 August. As the Teachers Pensions EOYC audit requires information from the TP portal, trusts should ensure that their EOYC audit is fully completed and submitted by 30 September to avoid delays caused by the transfer. 
• Electric Vehicle Salary Sacrifice Schemes (EVSS) - DfE published guidance on EVSS for colleges and academy trusts. For Academy Trusts, this will apply from 1 October 2026 when the new Academy Trust Handbook 2026 comes into effect. 
• Early Years Funding Consultation - DfE published a consultation on funding for early years entitlements; the consultation will close on 14 September.  
• Upfront funding for mainstream schools - DfE published a consultation on upfront funding for SEND inclusion in mainstream schools; the consultation will close on 18 September.  
• Academy Trust Handbook 2026 (ATH) - DfE published the latest Academy Trust Handbook 2026, with changes taking effect from 1 October 2026 (not 1 September, due to late publication of the document).
  Key changes include:  
  • Explaining trusts’ responsibilities for inclusion and collaboration 
  • Reminding trusts about working towards meeting the digital and technology standards by 2023 
  • Strengthening the position on 
  • Trustees’ financial knowledge and expertise 
  • CFOs of larger trusts holding a relevant accountancy qualification 
  • Using Integrated Curriculum and Financial Planning (ICFP) 
  • Trusts reporting on going concern 
  • Consideration of DfE opportunities when making purchasing decisions 
  • Confirming arrangements for executive pay and senior pay controls 
  • EVSS is now permitted 
  • Requiring DfE approval for alternative pension schemes 
  • Explaining what needs to be considered when dealing with severance payments 
  • Confirming what multi-academy trusts must publish on their websites regarding distribution of funds across their schools 
  • Explaining what the Secretary of State may do where a trust is in breach of its funding agreement 
• Free breakfast club grant - DfE published guidance on free breakfast club grants for the 2026-2027 academic year.  
• Budget Forecast Return (BFR) - DfE opened the BFR 2026 portal, with a submission deadline of 24 September 2026. Further details are available within the DfE BFR guidance. 
• School estate management standards - DfE published guidance on the school estate management standards annual return. The annual return submission window will last from late September to late November. This will help trusts assess how they meet the standards and provide information to allow the DfE to better target its support. The return looks at trust-level responsibilities, management, plans (including climate, continuity and cyber) and oversight. DfE will not be publishing the Land and Buildings Collection Tool in autumn 2026 and is reviewing how it can more effectively collect data from academy trusts. 
• Good practice guides - DfE published good practice guides on: 
  • Financial operating models, which includes a section on GAG pooling and a link to assist with the publication of a summary statement outlining the trusts’ approach, as introduced in the ATH2026 
  • Reducing procurement risk in academy trusts 
• Academies Accounts Return (AAR) - DfE announced that the AAR will go live by early November and have a submission deadline of 26 January 2027. The AAR workbook will be available in the autumn. 

August 2026 

• Academies Chart of Accounts (CoA) - DfE published an update to the CoA for 2026-2027. 
• Academies Accounts Return (AAR) - DfE announced that automation will not be available for the AAR 2025-2026. Instead, trusts will need to complete the return using the traditional manual method. DfE is currently reviewing how data is collected from academy trusts. 
• Flexible working in schools - DfE updated the non-statutory guidance on flexible working in schools to reflect the expectation that schools are now expected to have a flexible working policy in place. 
• Growth and Skills Levy fund - DfE announced a package of financial grants and cash incentives for employers taking on a young apprentice, alongside a bursary to address a Universal Credit barrier that can leave some families worse off when starting an apprenticeship.  
• Streamlined Energy and Carbon Reporting (SECR) - DfE published updated SECR guidance to reflect the latest emissions conversion factors. This will assist in the preparation of the trustee’s SEC report in the annual financial statements.  
• Condition Improvement Fund (CIF) - DfE added CIF successful appeals for 2026-2027 to its existing CIF page. 
• High Needs Funding - DfE published guidance on High Needs Funding for 2026-2027.  

There have also been four DfE notices to improve issued recently. 

 Two of these highlight that the DfE is paying attention to the level of involvement and challenge by members in the operation of the trust, especially where it appears that members, trustees and senior leaders are not fulfilling their responsibilities over the running of the trust. 

 Main concerns mirror some of those raised in the previous quarters' notices to improve and include: 

• Weak financial management, low reserves, lack of oversight from members.  
• Widespread procurement issues, no Register of Interests, related party transaction problems, poor record keeping.  
• Widespread weaknesses, missed deadlines, net deficit budget, insufficient/no management accounts and not shared appropriately. Members concerns. 
• Failure to maintain robust financial oversight and governance. 

Duncan & Toplis works with UK academy trusts, providing support across internal scrutiny, external audit, VAT, cyber security, budgeting and specialist education audits. If you are seeking advice for managing your academy, get in touch or contact your usual Duncan & Toplis adviser.