Maximising Value for Pupils
Alongside the requirements in the Academies Accounts Direction and Academy Trust Handbook, academy trusts should be aware of the Department for Education’s Maximising Value for Pupils policy and guidance.
Background
The aim of Maximising Value for Pupils, available here, is for every pound to deliver maximum benefits for pupils: improving value for money while protecting educational quality.
Academy trusts and schools share this responsibility with the Government and wider system partners.
The guidance recognises that academies already tightly manage their budgets, but opportunities exist to improve efficiency further.
It places emphasis on reinvesting savings into improving outcomes for pupils rather than just cost-cutting. It also commits the Government to:
- Removing systemic cost pressures
- Providing improved tools surrounding data and benchmarking
- Negotiating better deals
The vision of the DfE is supported by the following four key pillars
Commercial
- Using collective buying power to secure betters deals
- Reducing inefficiencies and excess supplier costs
Assets
- Making best use of estates and buildings and any financial reserves
- Ensuring assets are used in the pupils’ best interests and deliver value
Workforce
- Improving the deployment and planning of staffing
- Reducing agency costs, reviewing leadership pay and addressing recruitment / retention challenges
Capability
Building system capability through
- Better financial management
- Data use and benchmarking
- Digital tools and automation
How the Government will help
The DfE has committed to provide a financial benchmarking tool which allows for expenditure to be compared across the sector.
This will allow you to analyse your own data, benchmarking it against their peers and identifying opportunities for cost-savings.
The Government has also committed to address barriers to efficiency, specifically high procurement costs, by introducing specific and centralised procurement frameworks.
This is intended to impact all costings, particularly staffing (including agency costs) and energy cost increases.
Maximising Value for Pupils also acknowledges that wider social policy changes (e.g. alleviating childing poverty, childcare support) are required to reduce the pressure on schools.
What is expected of academy trusts
Your trust is expected to take a strategic, data-driven approach to continually improving how it allocates all resources – using DfE tools and frameworks where beneficial.
Reviewing and justifying all spending will uphold value for money as a core governance responsibility and ensure the best outcomes for pupils.
Your trust board should be able to:
- Demonstrate effective use of resources across all four pillars
- Provide evidence of informed decision making (augmented by benchmarking techniques) which has an oversight and challenges all major cost areas, and in particular, staff costs
On Thursday 17 September, our senior academies and schools experts will take you explain your reporting requirements and answer your questions.
How BKL can help
Our specialist education sector team have more than 25 years’ experience of providing advice to over 100 schools and academies, including single academy trusts and multi academy trusts across the UK.
We can help your trust to put the Maximising Value for Pupils guidance into action, updating how you operate and planning for the financial implications.
For a chat about how we can help, get in touch with Carly Pinkus using the form below.
Contact Carly
Frequently asked questions: Maximising value for pupils in academy trusts
What does ‘value for money’ mean in an academy trust context?
Value for money means using available resources in a way that delivers the best possible outcomes for pupils. It is not simply about reducing costs.
The approach by the Department for Education (DfE) focuses on ensuring spending decisions are effective, evidence-based and aligned with educational priorities. This includes considering the impact of staffing, procurement, technology, estates and other resources to ensure public funds are used efficiently while maintaining or improving educational quality.
Why is benchmarking important for academy trusts?
Benchmarking helps trusts compare their spending and performance against similar organisations across the sector.
By reviewing data against peer schools or trusts, leaders can identify unusually high costs, uncover efficiency opportunities and better understand whether resources are being deployed effectively.
Benchmarking can also provide evidence to support trustee decision-making and help demonstrate that key spending choices are delivering appropriate value for pupils.
How can academy trusts reduce costs without affecting educational outcomes?
The most effective approach is to focus on efficiency rather than indiscriminate cost-cutting.
This may involve reviewing procurement arrangements, reducing unnecessary supplier costs, improving workforce planning, making better use of digital tools, or optimising the use of buildings and facilities. Savings achieved through improved efficiency can often be reinvested into teaching, student support, technology or other initiatives that directly benefit pupils.
Which areas of spending should trustees scrutinise most closely?
Staffing costs typically represent the largest area of expenditure for most academy trusts and therefore warrant careful oversight.
Trustees should also regularly review procurement arrangements, estates management, energy costs, technology investments and the use of financial reserves. Effective governance requires boards to challenge assumptions, understand spending trends and ensure significant expenditure can be justified in terms of educational impact and value for money.
Can academy trusts benefit from collective purchasing arrangements?
Yes. Collective purchasing can help academy trusts secure better prices and reduce procurement costs.
By using approved frameworks or participating in larger purchasing arrangements, trusts may be able to access improved contract terms, lower supplier costs and reduced administrative burdens. This can be particularly relevant for areas such as energy, technology, educational services and temporary staffing, where buying power may generate significant savings.
What role does workforce planning play in financial sustainability?
Effective workforce planning is one of the most important drivers of long-term financial sustainability.
Strategic workforce planning helps trusts align staffing structures with educational needs, reduce reliance on expensive agency staff, anticipate recruitment challenges and make informed decisions about leadership and support roles. A proactive approach can help manage costs while ensuring schools have the staff and expertise needed to deliver high-quality education.
What evidence should trustees retain to demonstrate value for money?
Trust boards should be able to show that major spending decisions were informed, proportionate and supported by appropriate evidence.
Useful evidence may include benchmarking data, business cases, procurement reviews, budget forecasts, board discussions and assessments of educational impact. Maintaining a clear audit trail can help demonstrate effective governance and provide confidence that resources are being managed in pupils’ best interests.
Is achieving value for money solely the responsibility of finance teams?
No. Value for money is a governance and leadership responsibility across the entire organisation.
While finance professionals play a key role in providing analysis and oversight, trustees, senior leaders and operational teams all influence how resources are deployed. The strongest outcomes are often achieved when educational, operational and financial decision-making are considered together rather than in isolation.
Does having reserves mean a trust is not delivering value for money?
No. Holding reserves does not automatically indicate inefficient financial management.
Reserves can provide financial resilience, support future investment and help trusts manage unexpected pressures. The key question is whether reserves are held for a clear purpose and
whether trustees can demonstrate that financial resources, including reserves, are being managed strategically to support pupils’ long-term interests.
How can academy trusts prepare for increasing scrutiny of value-for-money decisions?
Trusts should adopt a data-driven approach supported by regular review and challenge.
This includes making effective use of benchmarking tools, reviewing major cost categories, evaluating procurement arrangements, monitoring workforce efficiency and ensuring decisions are documented appropriately. As expectations around accountability and stewardship of public funds continue to increase, trusts that can clearly evidence informed decision-making will be better placed to demonstrate strong governance and financial management.
