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Academy trusts wasting millions of pounds on highly-paid managers 11 May 2023

by Warwick Mansell

Image: iStock/Getty Images

 

Multi-academy trusts, the government’s favoured structure for organising schools in England, are wasting millions of pounds on high salaries for their managers, new analysis reveals today.

The largest trusts are spending eight times more per pupil on salaries of £130,000 and above than are England’s largest local authorities, which oversee non-academy schools, my investigation for the Campaign for State Education has found. Yet there is no definitive evidence that the academies sector has provided higher quality to pupils as a result.

Analysis of the accounts of 561 multi-academy trusts, and accounts and freedom of information responses from England’s 10 largest local authorities (LAs), revealed huge disparities in spending on highly-paid administrators.

The 50 largest academy trusts had 167 people paid £130,000 or more, compared to only 24 within the 10 LAs – even though the two groupings had roughly the same number of pupils under their oversight.

Those 50 academy trusts had 26 people paid at least £200,000, compared to only two among the LAs, with a highest salary figure within the academies sector of £455-£460,000, compared to one of £202,000 among the 10 local authorities.

Six of these 10 largest LAs had only six people between them paid £130,000 or higher, whereas the 19 largest academy trusts, together responsible for the same number of pupils as were the six LAs, had 106 people above this benchmark.

The research, which featured one of the largest ever investigations of academy accounts data, shows how the academies policy has created a new tier of highly-paid overseers of schools.

Such a highly-remunerated structure did not exist when schools were entirely overseen by local authorities, research I did at the outset of this website in 2017 showed. And it does not exist in the LA sector now, with education officials working for the largest councils generally not paid six-figure salaries. This is despite local authorities still being responsible for more than half the schools in England, and the largest LAs still being much bigger, in terms of pupil numbers, than are the largest academy trusts.  

But with academies said by the government to be funded at the same level as LA maintained schools, the extra pay for managers in the trust sector must be funded from lower spending in the classroom, the report published today concluded – backing the concerns of MPs who had raised this issue in 2018.

The 10 largest LAs, which as of 2021-22 oversaw non-academy schools educating nearly 900,000 pupils, have very few education officials paid in six figures. Lancashire, the largest in England that year with 142,000 pupils in its schools, had only one education official paid £100,000 or more: its Executive Director of Education and Children’s Services, on £175,925.

By contrast, England’s three largest academy trusts – United Learning, the Harris Federation and Ormiston Academies Trust – which together educated 126,000 pupils, had 36 people between them paid at least £130,000 a year; six people paid more than £200,000 and average pay for their chief executive of around £310,000.

On average, England’s largest 50 academy trusts spent £80 per pupil on six-figure salaries for their leaders in 2021-22, compared to only £28 per pupil among the 10 largest local authorities. And those academy trusts spent £32 per pupil on salaries for administrators on £130,000 or more, compared to only £4 per pupil among the LAs.

It is sometimes claimed that economies of scale will kick in as academy trusts get larger. But the research echoes an earlier study (https://tinyurl.com/2h9hyapr) in finding the opposite, in relation to highly-paid managers. That is, spending on high salaries for managers tends to rise per pupil as academy trusts get larger.

The investigation concluded that, if England’s schools were to be organised with their spending on highly-paid managers following the pattern of the 10 largest LAs, rather than that of the 50 largest academy trusts, there would be savings across England of £439 million per annum on six-figure salaries, including a £240 million saving on salaries of £130,000 or higher.

In addition, a government proposal put forward last year to have all state-funded schools in academy trusts of at least 7,500 pupils by 2030 stands to cost £78 million a year in extra six-figure salaries for managers, including £49 million for those on £130,000-plus a year.

Much of the analysis in the report focuses on pay from £130,000 upwards, as this is just above the level of remuneration recommended in the School Teachers' Pay and Conditions Document as the top of the scale for payment to headteachers in England. Anyone paid more than that, then, is either a highly-paid headteacher or working at a level beyond that of individual school headteacher.

The investigation also found that government attempts to regulate high pay within the academies sector have essentially come to nothing, with the salaries of the leaders of the top 10 largest trusts rising at four times the rate of experienced teachers over the period 2009-10 to 2021-22.

And it revealed that the current oversight structure for academies, introduced by the government in 2014 under its Regional Schools Commissioners – now called Regional Directors - is employing 555 officials in 2022-23, at a projected cost of £34 million.

The report makes a string of recommendations, including the introduction of a national pay structure for people working above the level of the individual school, as the absence of such a regime has contributed to the high wages currently seen in academy trusts;  a detailed review by government of the cost-effectiveness of the multi-academy trust model; and a review from first principles of the academies policy as a whole.

I intend to follow up on aspects of the report on Education Uncovered, as well as continuing to investigate and write about implications on the ground.

The report, entitled “Systems matter: the cost to classrooms of the academies programme,” can be viewed here.

A chart, setting out per pupil spending on £130k+ managers in local authorities and MATs, is below:

 

Tables: 

 

Academy trusts: spending on higher salaries

Figures listed are number of employees in each academy trust paid £130,000 or more; £130-£150k; £150-£200k; £200k or more; and spend per pupil on £130k+ salaries

 

Trust name Pupil nos 130+ 130-150 150-200 200+ Spend per pupil on £130k+salaries
UNITED LEARNING TRUST 54,252 9 8 0 1 £25.16
HARRIS FEDERATION 38,965 20 4 12 4 £97.01
ORMISTON ACADEMIES TRUST 33,207 7 3 3 1 £33.28
OASIS COMMUNITY LEARNING 31,893 7 5 1 1 £34.33
ACADEMIES ENTERPRISE TRUST 31,816 7 3 3 1 £34.73
ARK SCHOOLS 29,586 10 5 5 0 £53.07
OUTWOOD GRANGE ACADEMIES TRUST 29,176 3 1 2 0 £16.62
DELTA ACADEMIES TRUST 23,735 3 2 0 1 £22.96
THE KEMNAL ACADEMIES TRUST 23,198 6 4 1 1 £41.81
LEIGH ACADEMIES TRUST 20,091 7 4 2 1 £58.48
STAR ACADEMIES 19,564 4 2 1 1 £36.29
REACH2 ACADEMY TRUST 19,407 3 1 1 1 £28.08
E-ACT 18,063 5 1 3 1 £46.78
THE CO-OPERATIVE ACADEMIES TRUST 17,854 3 2 1 0 £23.80
GREENWOOD ACADEMIES TRUST 17,747 4 1 3 0 £38.32
THE SPENCER ACADEMIES TRUST 17,015 3 2 0 1 £29.09
GLF SCHOOLS 16,933 1 0 0 1 £12.11
MERIDIAN TRUST 15,761 1 1 0 0 £8.57
GREENSHAW LEARNING TRUST 15,313 3 1 2 0 £29.71
RIVER LEARNING TRUST 14,597 1 1 0 0 £9.93
CREATIVE EDUCATION TRUST 14,499 4 2 1 1 £45.52
ASTREA ACADEMY TRUST 14,492 1 0 1 0 £12.77
THE DAVID ROSS EDUCATION TRUST 14,349 3 2 1 0 £31.71
UNITY SCHOOLS PARTNERSHIP 14,326 1 0 1 0 £12.22
WESTCOUNTRY SCHOOLS TRUST 14,217 1 0 1 0 £13.01
NORTHERN EDUCATION TRUST 13,822 4 3 0 1 £44.13
BISHOP WILKINSON CATHOLIC EDUCATION TRUST 13,022 2 1 1 0 £26.11
BISHOP BEWICK CATHOLIC EDUCATION TRUST 13,013 1 0 1 0 £13.45
SWALE ACADEMIES TRUST 12,914 3 1 1 1 £39.88
DIXONS ACADEMIES TRUST 12,678 2 1 1 0 £26.82
THE ELLIOT FOUNDATION ACADEMIES TRUST 12,676 3 2 0 1 £39.05
OUR LADY OF LOURDES CATHOLIC MULTI-ACADEMY TRUST 12,530 1 0 1 0 £15.56
EAST MIDLANDS EDUCATION TRUST 12,224 2 1 1 0 £26.18
CABOT LEARNING FEDERATION 12,195 2 1 1 0 £25.42
THE WHITE HORSE FEDERATION 12,175 3 1 0 2 £49.69
MIDSOMER NORTON SCHOOLS PARTNERSHIP 12,061 2 1 1 0 £27.36
BISHOP HOGARTH CATHOLIC EDUCATION TRUST 11,797 2 1 0 1 £28.82
REDHILL ACADEMY TRUST 11,707 1 0 1 0 £13.24
HAMWIC EDUCATION TRUST 11,535 3 1 2 0 £40.31
ACADEMY TRANSFORMATION TRUST 11,391 2 1 1 0 £25.46
THE THINKING SCHOOLS ACADEMY TRUST 11,158 2 1 1 0 £29.58
THE TWO COUNTIES TRUST 10,965 2 2 0 0 £25.54
THE SIGMA TRUST 10,944 1 1 0 0 £12.34
CHILTERN LEARNING TRUST 10,800 1 1 0 0 £13.43
L.E.A.D. ACADEMY TRUST 10,648 3 2 0 1 £48.37
BOHUNT EDUCATION TRUST 10,576 1 0 1 0 £15.60
THE GORSE ACADEMIES TRUST 10,460 4 2 1 1 £63.10
BOURNE EDUCATION TRUST 10,419 1 0 1 0 £18.72
THE SHAW EDUCATION TRUST 10,386 1 0 0 1 £22.63
NOVA EDUCATION TRUST 10,232 1 0 1 0 £18.08
Totals 852,384 167 79 62 26 (AVERAGE) £32.64

Figures are for highly-paid employees within the largest 50 academy trusts, excluding employers' pension contributions. Pay statistics come from trusts' 2021-22 accounts. Pupil number figures are from DfE's January 2022 pupil census.

Local authorities: spending on higher salaries

Figures listed are number of employees in each LA paid £130,000 or more; £130-£150k; £150-£200k; £200k or more; and spend per pupil on £130k+ salaries.

Figures are for highly-paid employees within the largest 10 local authorities, excluding employers' pension contributions. Pay statistics come from LAs' 2021-22 accounts, supplemented by FOI responses from LAs to identify spending on education/children's services officials specially. Pupil number figures are from DfE's January 2022 pupil census. 

LA name Pupil nos 130+ 130-150 150-200 200+ Spend per pupil on £130k+ salaries
Lancashire 141,731 1 0 1 0 £1.24
Hampshire 138,257 2 1 1 0 £2.58
Hertfordshire 95,886 3 2 0 1 £4.35
Kent 95,263 7 6 0 1 £10.91
Birmingham 81,985 1 0 1 0 £2.10
Leeds 71,704 1 0 1 0 £2.20
W Sussex 68,814 1 0 1 0 £2.22
Surrey 64,003 6 2 3 0 £13.26
Essex 62,009 1 0 1 0 £2.70
Liverpool 54,516 1 0 1 0 £2.80
Totals 874,198 24 12 10 2 (Ave) £4.17
About Education Uncovered

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