UK caps academy trust chief executives’ pay at £174,000

Education Secretary Bridget Phillipson will set a statutory ceiling of £174,000 for chief-executive and senior-leader salaries in multi-academy trusts (MATs). Trusts proposing higher pay must obtain Department for Education approval, and future raises will match the percentage awards for teachers.

The Guardian

The cap follows the February schools white paper, which called the top tier of academy executive pay “unjustifiable.” Officials say six-figure salaries risk diverting taxpayer-funded resources from teaching, materials and infrastructure, and the limit mirrors NHS and further-education pay rules.

The Guardian

Dan Moynihan of the Harris Federation earned £530,000; Dayo Olukoshi of Brampton Manor Trust earned £350,000 after a £20,000 raise. About 100 academy CEOs earn over £200,000. Only 25 % of top earners are women, and one-quarter received raises larger than teachers’ in 2024-25. Across more than 1,000 trusts, the average chief-executive salary is £142,000; 90 % of secondary schools are academies, so the cap will affect a minority.

Inside the Crackdown on ‘Banker-Style’ Salaries in UK State SchoolsThe Guardian

The Department for Education called the cap “a straightforward matter of fairness, for both the taxpayer and teachers.” A government source said academy trusts “are doing brilliant work for millions of children,” but “double-figure pay rises on top of six-figure salaries” cannot be justified. The DfE also recommended a 6.5 % teacher-pay rise for 2026-27 to 2028-29, urging schools to fund it through efficiencies.

The Guardian

The National Education Union said there is “no justification for inflated chief executive salaries.” A Labour source called the high pay “banker-style” and unsuitable for funded academies. Critics argue the cap does not solve broader funding shortfalls for classrooms and special-educational-needs provision.

The Guardian

One source cites “nearly 100” CEOs earning over £200,000; another references “more than 1,000 trusts” with an average chief-executive salary of £142,000, leaving the share above the £174,000 cap unclear. No details were given on the approval process for salaries exceeding the limit.

Inside the Crackdown on ‘Banker-Style’ Salaries in UK State Schools

• “This is a straightforward matter of fairness, for both the taxpayer and teachers.” — Government source, DfE

Inside the Crackdown on ‘Banker-Style’ Salaries in UK State Schools

• “‘Banker-style’ salaries were inappropriate for administering academies funded by public money.” — Labour source

The Guardian

• “Many academies are doing great things and we continue to back them.” — Unnamed source

The Guardian

• “That’s why we’ll now be treating executive salaries in school trusts no differently from the rest of the public sector, making sure they’re a fair and accountable use of taxpayer cash.” — Unnamed source

The Guardian

The cap is expected to be announced on Wednesday, followed by the STRB’s teacher-pay recommendation. Trusts must seek DfE approval for any salary above £174,000, and schools will be monitored for compliance as the new regime begins.

The Guardian