Latest figures reveal academies overspent by more than £170m

The TES is reporting that academies have overspent by more than £170m, according to latest government figures.

Numbers released today by the Department for Education show that academies’ expenditure exceeded their income by £171m.

Academies received a total income of £16.74bn in the year ending August 2015, but they spent £16.91bn. The overspend equates to 1 per cent of the academies’ income.

The government states that this does not mean the academies have fallen into debt, “as they may have reserve funds from which these costs were able to be met”.

The news is likely to raise questions about academy chains building up reserves, rather than spending the money on children’s education.

The figures show that expenditure on teaching staff as a proportion of total expenditure has fallen by 4.4 percentage points since 2011/12. At the same time, spending has increased on supply staff and support staff.

More at: Academies overspend by more than £170m

Here’s the full report:

SFR27_2016_Main_Text

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Comments

  1. sw16hausfrau

    SchoolsImprove And LA schools? Most schools having to ‘overspend’ to keep heads above water.Spending reserves as can’t live within budget

  2. WBUK2014

    SchoolsImprove warwickmansell the rise in “admin” costs must in part reflect the questionably high remuneration of executive principals

  3. The figures revealed that spending on teachers in academies has fallen by 4.4 percentage points since 2011/12 (but ‘only marginally’ between 2013/14 and 2014/15).  That’s against a background of more pupils in schools.  At same time, though, the pay of executive principals and the like appears to have risen.  Priorities are getting skewed somewhere.

  4. “Our reforms mean we have stricter oversight and accountability over academy finances than in council-run schools,’ says DfE spokesperson.   How come some multi academy trusts are getting away with a ‘shocking abuse of trust’ then?  http://www.localschoolsnetwork.org.uk/2016/07/shocking-abuse-of-trust-former-pac-chair-on-high-salaries-and-lavish-perks-for-academy-bosses

  5. “Our reforms mean we have stricter oversight and accountability over academy finances than in council-run schools,’ says DfE spokesperson.   How come some multi academy trusts are getting away with a ‘shocking abuse of trust’ then?  http://www.localschoolsnetwork.org.uk/2016/07/shocking-abuse-of-trust-former-pac-chair-on-high-salaries-and-lavish-perks-for-academy-bosses

  6. TpartyTja

    SchoolsImprove Would like a chart of academy heads’ salaries and results to see if they are worth it, or if failure is being rewarded

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