Once again there are no major changes this year, but some key areas of clarification and emphasis to be aware of.

Digital and technology standards

Unsurprisingly, given the high-profile cyber-attacks of recent months, there is further emphasis this year on digital and technology standards. It has been confirmed that trusts should be working towards meeting the six core standards by 2030. There is further guidance on each of the six key areas in section 1.16 of the handbook, which are:

• Broadband internet
  
• Network switching
  
• Wireless network
  
• Cyber security
  
• Filtering and monitoring
  
• Digital leadership and governance

It has also been confirmed in section 6.15 that trusts must not pay cyber ransomware demands, where previously this was permitted where permission was granted by ESFA.

Accounting officer duties

The wording of the accounting officers’ responsibilities has been updated as follows:

‘Accounting officers must be able to assure DfE’s accounting officer, Parliament and the public, of high standards of probity in the management of public funds, particularly regularity, propriety, feasibility and value for money, including economy, efficiency and effectiveness – the 3 elements of value for money. ’

The definitions of each of the elements are set out in section 1.32 to align with ‘Managing Public Money’.

In addition the accounting officer is also required to advise the board if any considered action does not align with the requirements for regularity, propriety, value for money and feasibility. There is further guidance provided in chapter 3 of Managing Public Money, which specifically concerns the role of accounting officer:

Managing public money - GOV.UK

In keeping with the theme of value for money, there has been further guidance added to section 2.25 regarding procurement. There are no specific changes to be aware of in this section, other than the requirement to ensure that there is an appropriate due diligence process in place, but additional links have been added to provide further support to trusts.

Setting executive pay

The process of setting executive pay has been highlighted this year, with a new must requirement to document the agreed pay policy. This policy should cover the following:

• Independent scrutiny by the board
  
• Robust decision making
  
• Proportionality
  
• Documented decision making
  
• A presumption that executive pay and benefits should not increase at a faster rate than that of teachers.
  

Although the requirement to have a process in place is not new, trusts should ensure that this policy and process is formally documented going forwards.

The wording around executive pay has been amended from ‘justifiable’ to ‘defensible’ which appears to align with the addition that ‘decisions about executive pay may be challenged by DfE’, suggesting that trusts should be prepared to defend their process and decisions if required.

Intervention

Section 6.16 provides a link to guidance on how the DfE will provide financial support and oversight to academy trusts:

Financial support and oversight for academy trusts - GOV.UK

Unusually, there is one point which has been removed from the handbook. Previously a Notice to Improve (NtI) may have been issued where the DfE deemed that the trustees lack the ‘skills, knowledge and experience to exercise effective oversight and performance, including educational performance’, however this has been removed from the recent publication.

There is an additional point in this section (6.21) which confirms that the DfE may seek to recover funds from the trust where there is evidence of irregularity or fraud.

Other minor changes

• There is further guidance included in section 1.20 regarding school estates management and a link to the standards which were published in April 2025.
  
• It is a requirement for Trusts with income over £50m to have a dedicated audit and risk committee, and either appoint and in-house internal auditor or a bought-in internal audit service, and it has now been clarified that the threshold of £50m is based on the last audited accounts.
  
• The explanation of repercussive transactions has been expanded to explain that a transaction may be considered repercussive if it could cause additional costs to arise for other parts of government. There is also now a link to the DfE’s guide for novel, contentious and repercussive transactions, which was published in March 2025:  NCR transactions in colleges and academy trusts - GOV.UK