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

Each week, DfE publishes information for academies on the GOV.UK website which lay out the latest updates, things to be actioned and reminders on previous updates.

Below, our expert Academies Team has provided a round-up of everything you need to know from a financial perspective from September 2025 to February 2026.

September 2025

• Publication of fraud awareness good practice guide - The fraud awareness good practice guide was published. This brings together a variety of resources for developing counter fraud policies and approaches, including cyber-related fraud. Subsequent to this publication, the Counter Fraud updates service has highlighted a recurring fraud scheme currently targeting education settings. Attempts involve fraudsters contacting education providers, claiming they wish to donate a piano that belonged to their late spouse. Once contact is established, criminals use social engineering techniques to persuade staff to pay courier or transport fees for the piano’s delivery. The piano is never delivered.
• Publication of common issues from DfE assurance work 2024 to 2025 – This report on DfE assurance work includes a review of academy trust financial statements and governance reviews. The report highlights areas where there were regularity concerns, including internal financial reporting (management accounts missing key sections, not sharing with the board or not being produced and no fixed asset register) and related party transaction issues (not seeking DfE prior approval or reporting when appropriate).

October 2025

• 16 to 19 Bursary scheme guide updated – DfE published an updated guide for the 16 to 19 Bursary Fund. The 16 to 19 Bursary fund guide includes changes to the process for defined vulnerable group funding claims. It also includes a checklist and summary of key funding rules. Trusts should note that bursaries awarded should be based on assessed actual need, where a barrier to accessing the education provision exists. Unused bursary funding cannot be carried forward for more than one year, with trusts needing to report unspent funding (for any year up to and including academic year 2023 to 2024) to DfE by 31 March 2026.
• Special Severance Payments – The academy trust handbook was updated to reflect an increase in the threshold for prior DfE approval of exit packages, dependent on earnings from £150,000 to £174,000.

November 2025

• School uniform guidance – DfE published updated statutory guidance on the cost of school uniforms, to be introduced from September 2026. This includes draft guidance that will be made a legal requirement once the Children’s Wellbeing and Schools Bill’s passage through Parliament is completed (Royal assent due Easter 2026).
• Banking options – DfE published the latest Buying for Schools blog, to help schools explore their banking options. This includes a link to the savings options for schools site, where trusts can compare offering options from individual providers and savings platforms. DfE have identified that many schools could increase income by reviewing their savings arrangements, which was reinforced in the 2026 Kreston Academies Benchmarking Report.
• Digital Technology Standard – DfE published the new IT support standard, to assist trusts in understanding what is expected from their IT support. It includes the 6 core standards that schools should be working towards by 2023. This was accompanied by a digital service designed to help trusts plan technology for schools.

December 2025

• Pupil Premium allocations – DfE published the quarter 3 update to pupil premium allocations for the 2025 to 2026 financial year.
• Pupil Premium funding rates 2026 to 2027 – DfE published the 2026 to 2027 financial year pupil premium funding rates.
• Maths and English funding 2026 to 2027 – DfE published the 2026 to 2027 academic year maths and English funding guidance. There were no substantial policy changes.
• Maximising Value for Pupils – DfE launched the maximising value for pupils programme to help schools get the best value from every pound.

January 2026

• Post-16 payments and allocations – DfE published a summary of payments and allocations for post-16 settings for the academic year 2025 to 2026.
• Government to introduce academy-level inspections – The Education Secretary announced that the Government plans to introduce inspections of multi-academy trusts, which will focus on leadership, governance and impact. New powers of intervention are also proposed.

February 2026

• ISBL Regional In-person training sessions – ISBL launch free training sessions (funded by DfE) starting February 2026 aimed at School Business Professionals, designed to provide practical, professional development on a range of topics.
• General Annual Grant (GAG) allocation guide – DfE published the GAG allocation guide for the 2026 to 2027 academic year. This highlights that the schools budget support grant (SBSG) and national insurance contributions grant (NICG) will cease to be paid as separate grants for the 2026/27 academic year and will be funded through the dedicated schools grant (DSG) as part of the schools budget share (SBS) formula, used when calculating the minimum funding guarantee (MFG). This follows the approach in 2025 to 2026 where the teachers’ pay additional grant (TPAG), teachers’ pension employer contribution grant (TPECG) and core schools budget grant (CSBG) were included in the MFG baseline calculations.
• New Education Estates Strategy – DfE launched the new Education Estates Strategy, which sets out the government’s 10-year plan to improve the education estate in England. The Manage Your Education Estate digital service was launched in February 2026, aiming to provide a more proactive approach to estates management. This includes a new programme to replace the Condition Improvement Fund (CIF) from autumn 2028 and the introduction of a Renewal and Retrofit Programme from April 2026 to tackle significant condition projects.
• Breakfast Club – DfE published allocations for the payment of the free breakfast club grant for 2025 to 2026. Academies will receive the first allocation in March 2026, paid in arrears, to spend on breakfast club provision only.
• Financial Benchmarking and Insights Tool (FBIT) – DfE updated the Financial Benchmarking and Insights Tool (FBIT) to include the 2024 to 2025 Academy Accounts Return (AAR) data. Webinars to support the new data and tools will run through to Easter 2026.
• Schools Resource Management Self-Assessment (SRMSA) – SRMSA should be completed by academy trusts and submitted to DfE by Friday 13 March 2026.
• SEND reform – DfE published the white paper for consultation on SEND reform. The consultation will close on 18 May 2026. The reforms will support mainstream schools to become more inclusive, with EHCPs being retained for those with the most complex needs. Funding will be rebalanced from the high needs block and go directly into school budgets through a new Inclusive Mainstream Fund. Capital funding will create new places in Inclusion Bases in mainstream settings. Funding will be allocated to provide training and support and to improve maternity pay for teachers and leaders. There is an expectation of greater collaboration between schools and a move towards all schools being part of school trusts, including new trusts established by local authorities or area partnerships.

There have also been DfE Notices to Improve (NtI) issued recently. During the whole of the 2025-26 academic year, DfE published six NtI. DfE have already issued 6 NtI between the start of September 2025 and mid-February 2026, although one has since been closed.

All six NtI raised concerns over financial management, including a lack of required content in the management accounts, unrealistic budget setting and a balanced budget not being set or properly approved and submitted to DfE by the deadline. These combined to demonstrate a lack of financial oversight. In addition, two trusts failed to ensure their Internal Scrutiny provision met the requirements of the Academy Trust Handbook (ATH).

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