MAT Handbook published as new Academy Trust CEO pay rules take effect
For Trust leaders and boards, there are new requirements to be aware of around executive pay. The Department for Education has now published the 2026 Academy Trust Handbook, with new controls around Academy Trust CEO and senior executive pay coming into effect from 1 October.
When DfE approval is required
Under the new requirements, Academy Trusts must seek DfE approval before advertising a new senior executive appointment where the proposed remuneration is above £174,000, pro rata for part time staff, or where performance related pay is above £25,000. Approval is also required where a trust proposes increasing senior executive pay at a faster rate than that of its teachers, regardless of the level of pay.
What the £174,000 threshold means
Importantly, the £174,000 threshold is not an automatic cap on executive pay. Trusts can still make a case for a higher level of remuneration, with applications assessed against a range of factors. These include the full pay package, the responsibilities and expected impact of the role, comparisons with similar trusts, trust specific factors, and the wider labour market and location.
The DfE guidance also makes clear that trusts should not assume a new CEO or senior executive should receive the same pay as their predecessor. Boards remain responsible for executive pay decisions, with proposals expected to be consistent with the trust’s pay policy, supported by evidence and benchmarking, and subject to appropriate scrutiny and challenge.
Applying for approval
For Trusts where DfE approval is required, the new senior pay approval application forms must be used. A separate application is required for each role and associated pay approval, and trusts are advised to apply as early as possible, allowing a minimum of 20 working days for a decision.
What this means for Trusts
The new senior pay controls form part of the wider 2026 Academy Trust Handbook, which sets out the financial management and governance requirements academy trusts must follow.
For Trust CEOs, trustees and governance teams, the changes add another consideration to senior leadership recruitment, succession planning and executive pay decisions.
Schools North East works with, and supports, Academy Trusts of all sizes and structures across the North East, helping leaders navigate changes in policy and regulation and understand what they mean in practice. We will continue to keep Trust leaders informed of developments that affect their organisations, while providing opportunities to share insight, connect with peers and access support across the region. To find out more about how we can support you with changes in policy, email policy@schoolsnortheast.com.
You can read the full guidance from the DfE below: