17
Accepted
The number of academy trusts paying at least one individual above £150,000 increased to 473...
Conclusion
The number of academy trusts paying at least one individual above £150,000 increased to 473 trusts (17% of trusts) in 2019/20, from 340 trusts (12%) in 2018/19. Almost two- thirds of trusts (1,772; 64%) in 2019/20 reported paying at least one individual between £100,000 and £150,000, compared with just over half (1,535; 53%) in the prior year. The Department reported within the SARA that the actions resulting from its review of excessive pay in 2017/18 are expected to be realised in future years. Its review of executive pay based on 2018/19 data was delayed. The SARA reported that an approach based on 2019/20 data was under review with the aim of identifying outlier levels of leadership pay across similar academy trusts.41 We asked when the review of pay based on 2019/20 data would be complete. The Department explained that this was an area of continuous activity it wanted to keep a careful eye on pay within the academies sector, but that it did not have any formal review or publication planned as a follow up to the review in 2017/18, or in light of increasing levels of higher pay.42 The Department’s understanding of the academy estate
Government Response Summary
The government agrees with the implicit recommendation to address increasing levels of higher pay. It commits to new regulations under the Skills and Post-16 Education Act 2022 to prevent unsuitable trust leaders from moving, will launch a regulatory review in May 2022, and will provide a full response by September 2022.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Target implementation date: September 2022 6.2 There is already a robust regime in place for prohibiting unsuitable individuals from participating in the management of independent schools, including academies. The government will also be making regulations under section 19(7)(c) of the Skills and Post-16 Education Act 2022 to prevent trust leaders judged to be unfit from moving to elsewhere in the education system. Where an individual is currently subject to a direction prohibiting them from participating in the management of an independent school they are also excluded from accessing a range of ESFA funding in accordance with the published Funding higher risk organisations and subcontractors policy. 6.3 In that document, the department has continued to improve its mechanisms for assessing the risk of trust failure. Furthermore, the Schools White Paper sets out plans for the better regulation of trusts, including a set of statutory standards underpinned by new intervention powers. The White Paper announced the launch of a regulatory review in May 2022 looking at all aspects of trust accountability and regulation. In conducting the review, the department will have regard to the issues raised by the Committee. The department will write to the Committee by September 2022 with a full response.
Source
Committee
Public Accounts Committee
Report
Forty-Seventh Report - Academies Sector Annual Report and Accounts 2019/20
25 Mar 2022
HC 994
Addressee Bodies
HM Treasury
Timeline
Recommendation age
4.3 yrs
Report published
25 Mar 2022