Nearly three in five academy trusts now have in-year deficits, report suggests Rising staff costs and a growing demand for special educational needs provision is driving more academy trusts into deficit, a report has suggested.
Leora Cruddas, chief executive of the Confederation of School Trusts (CST), said: “School trusts have seen a real tightening of their budgets in recent years and the gap between the funding received and real costs on the ground is unsustainable.
Nearly three in five (58%) trusts were running an in-year deficit in 2024, according to an analysis of the financial data of more than 260 academy trusts in England which represent nearly 2,300 schools.
Kevin Connor, head of academies at Bishop Fleming, said: “Trusts are heading towards a financial cliff edge as they grapple with costs such as national insurance, the teachers’ pay rise and minimum wage increases which have not been fully covered by government funding.”.
Academy leaders said the top financial challenges they face are rising staff costs, increasing demand for special educational needs and disabilities (Send) provision, and falling pupil rolls.
