Academy school leaders in England may soon see an end to what the government describes as "banker-style salaries" and substantial annual pay increases, as Education Secretary Bridget Phillipson prepares to introduce limits on executive compensation.
Nearly 100 academy chief executives currently earn more than £200,000 a year, with pay in academy trusts ranging from less than £5 per pupil to over £150. Only a quarter of these high earners are women. The highest paid is Dan Moynihan, chief executive of the Harris Federation, which runs 55 academies, who received a salary of £530,000 last year, according to a survey by Schools Week.
Government to impose £174,000 cap
Phillipson is expected to announce a cap of £174,000 on academy trust executive salaries, requiring government approval for any pay package above that amount. Future pay increases will be limited to the same annual awards agreed for teachers. The announcement is likely on Wednesday, coinciding with the release of the government's independent review body's annual pay recommendation for teachers in England.
Sources told the Guardian that Phillipson will require trusts running academy schools, including multi-academy trusts (MATs) responsible for state schools, to follow executive pay rules similar to those used in the NHS and further education colleges.
Fairness for taxpayers and teachers
A government source said: "This is a straightforward matter of fairness, for both the taxpayer and teachers. Academy trusts are doing brilliant work for millions of children. But we simply cannot have double-figure pay rises on top of six-figure salaries. These are salaries paid for by the taxpayer, and excessive rates risk diverting funding from frontline teaching."
The move follows the government's February schools white paper, which aimed to tackle "unjustifiable" executive pay. A Labour source added: "Many academies are doing great things and we continue to back them. But with freedom comes responsibility, and on executive pay, this has not always been exercised in the sensible way the public would expect."
Impact on academy trusts
Nearly 90% of secondary schools in England are academies, but the £174,000 cap will not affect the majority of trusts, which pay salaries closer to those of secondary school heads. Schools Week analysis found that chief executive pay in more than 1,000 trusts averaged £142,000 a year.
The cap is likely to be welcomed by teaching unions. The National Education Union has stated there is no justification for inflated chief executive salaries. Unions are also awaiting the report of the School Teachers' Review Body (STRB), expected on Wednesday, and the government's final decisions on teacher pay for next year.
The Department for Education recommended to the STRB that teacher pay should rise by 6.5% spread over three years between 2026-27 and 2028-29, with higher awards in the second two years. However, unions are concerned that schools may not receive additional funding to cover the pay rises. Phillipson suggested in her remit letter that schools could use budget "efficiencies" to find the money.
