Academy school bosses are facing a significant curb on their 'banker-style' salaries, with Education Secretary Bridget Phillipson expected to announce a £174,000 cap on executive pay within academy trusts. This move aims to tackle the issue of high-earning chief executives, nearly 100 of whom currently receive more than £200,000 per year.
One chief executive reportedly earned over £500,000 last year, sparking concerns that such excessive rates are funded by taxpayers and divert crucial funds from frontline teaching. The new regulations will also tie future pay increases for these executives to the annual awards agreed for classroom teachers, preventing large, independent pay hikes.
The Department for Education is set to mandate academy trusts, including multi-academy trusts (MATs) that oversee numerous state schools, to adhere to executive pay guidelines similar to those already in place for the National Health Service (NHS) and further education colleges. This aligns with a commitment made in February's schools white paper to address 'unjustifiable' executive pay.
A recent analysis revealed that some academy chief executives received double-digit pay rises, exceeding those awarded to classroom teachers in 2024-25. For instance, Dan Moynihan, chief executive of the Harris Federation, was identified as the highest-paid, with a salary of £530,000 last year.
The new cap is expected to be welcomed by teaching unions who have long argued against inflated executive salaries. While it won't impact the majority of trusts, where chief executive pay averages £142,000, the move aims to prevent excessive rates funded by taxpayers and promote fairer pay practices in England's academy schools.