Trusts that fail to ensure their school estates are in a “safe working condition” could be slapped with notices to improve, under an update to the academy trust handbook.
But the move has sparked calls from sector leaders for “significantly more” cash to help them address longstanding building issues and a “cautious proportionate use of regulatory action”.
The change has been revealed in the latest version of the handbook, which was published later than expected by the Department for Education due to the election.
The document – which trusts must comply with from September or risk breaching their funding agreements – also shows that chains will have to be given the government greenlight before signing off on electric vehicle salary sacrifice schemes.
Here’s what you need to know…
1. Notices for unsafe buildings
In a letter to CEOs this morning, Education and Skills Funding Agency boss David Withey confirmed the list of circumstances in which a notice to improve may be issued will be extended to include “estates management”.
“DfE’s focus is about promoting constructive, supportive and ongoing dialogue with you, whilst recognising instances where there may be a need for additional action by a minority of trusts.”
The handbook states they may be given to chains if leaders fail “to manage their school estate and maintain it in a safe working condition strategically and effectively”.
However, Confederation of School Trusts chief executive Leora Cruddas argued that the RAAC crisis demonstrated that condition issues can be “long-term, expensive projects that trusts are not currently funded to deal with”.
“For trusts to truly maintain estates ‘strategically and effectively’ we need significantly more funding support from government, and cautious proportionate use of regulatory action,” she warned.
2. EV scheme ‘pause’
Last year, the handbook stated electric vehicle salary sacrifice schemes did not require ESFA approval if no liability fell on the trust if an employee didn’t “fulfil their contractual obligations” with the provider.
Other occasions where government go-ahead was needed were “for other types of EV salary sacrifice schemes” or if the trust was under a notice to improve.
But updated guidance states prior approval will have to be sought by those entering a new scheme or if they accept any further members of staff onto an existing agreement.
They must “contact ESFA early in the planning stage” in such cases.
Withey said a “pause” was placed on the schemes following cross-government talks while “we clarify our approach and gather data on how trusts are planning to implement them”.
3. Finance lease changes
Previously, approval had to be sought before signing up for a finance lease.
But from September 1 trusts will be allowed to finalise such agreements, provided they appear on the DfE’s approved list.
Schools minister Catherine McKinnell noted this would give them “greater freedom” to manage resources “by being able to enter into finance leases for assets you use on a day-today basis”.
4. Internal audits mandated
Over the next academic year trusts with an annual revenue over £50 million will be expected to “deliver internal scrutiny” by using an in-house auditor or through buying in such services.
And by September 1, 2025, they will be mandated to have these measures in place.
The handbook adds that “all trusts, regardless of income levels, may also use other individuals or organisations where specialist non-financial knowledge is required”.
5. Clear plans needed for reserves
The new handbook emphasises that trusts must also draw up “a clear plan for managing reserves”.
This will have to be included in policies for holding reserves, which are explained in annual reports.
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