Academy Trust Handbook 2024: Key Changes and Implications

The Department for Education (DfE) has today released the latest edition of the Academy Trust Handbook, set to take effect from 1 September 2024. This annual update provides essential guidance for academy trusts on financial management, governance, and accountability. For all trusts, compliance with the handbook is a condition of their funding agreement, and it, therefore, remains one of the most important documents that trust boards need to consult.

The 2024 handbook introduces minimal updates compared to previous years, but some are particularly pertinent for executive teams, the trust board chair and finance committees.

NGA was pleased to contribute to this edition of the handbook and its continued development as part of the Academies Finance and Assurance Working Group.

Key changes for 2024

Finance leases: Trusts will be able to enter into finance leases without prior approval from The Education and Skills Funding Agency (ESFA) for asset categories on a new DfE-approved list. This aims to simplify the process for trusts looking to improve their facilities (5.25 and 5.26).
Digital and technology standards: The handbook emphasises the importance of trusts adhering to the DfE's digital and technology standards, particularly around cyber security (1.16).
Internal scrutiny: There are new requirements regarding internal scrutiny options for trusts with annual revenue over £50 million. From 1 September 2025, these trusts must use either an in-house internal auditor or a bought-in internal audit service (3.16).
Qualifications for internal scrutiny: New guidance specifies that those performing internal scrutiny should have relevant professional qualifications or experience. Trustees and peer reviewers performing the work should have appropriate qualifications and/or experience relevant to the area being reviewed.
Intervention powers: The handbook clarifies that the ESFA may issue a Notice to Improve (NtI) in cases where trusts fail to properly manage their school estate (6.16).
Electric vehicle salary sacrifice schemes: Trusts must now approach the ESFA to seek approval for new schemes and to accept further employees onto existing schemes (2.31).

Implications for trusts

Whilst changes to this edition are minimal, the new handbook means:

greater flexibility in facility improvements through simplified finance lease procedures
increased focus on cyber security and technology standards compliance
enhanced scrutiny requirements for larger trusts
more explicit expectations around estate management and safety

The 2024 handbook continues the trend of streamlining guidance while emphasising key areas of trust responsibility. Trust leaders, trustees, and finance and governance professionals should familiarise themselves with these changes to ensure compliance and effective governance.

On the release of the handbook, Catherine McKinnell MP, Minister for School Standards, thanked all involved in trust governance, emphasising that “strong financial management and governance” equips schools to operate “most effectively and deliver high-quality teaching and learning that prepares our children for the future.”

Trusts are advised to review the handbook in full and consider how these changes may impact their operations in the coming academic year.