Introduction
Academies were introduced with a vision of transforming education by giving schools more independence and flexibility. But here’s the catch—while the idea sounded promising, it came with a price tag. Literally. More and more, experts and educators are sounding the alarm that academies are contributing to the rising costs of school administration, draining resources that could otherwise support teaching and learning.
So, what’s going on? Why are administrative costs ballooning? And how exactly do academies fit into this puzzle?
Let’s dive in.
The Evolution of Academies
From Local Authority Schools to Academies
Back in the day, most schools were under the control of local authorities. They shared services, funding was pooled, and costs were generally kept in check. Enter academies—publicly funded but independently run schools that report directly to the Department for Education.
The Academisation Movement
The shift toward academies gained momentum in the early 2010s, with the idea that autonomy would spark innovation. Schools rushed to convert, either voluntarily or by mandate, especially if they were underperforming.
Goals vs. Reality
While academies were meant to drive up standards and cut red tape, the unintended consequence was the creation of a fragmented system where duplication, inefficiencies, and spiraling administrative costs started to become the norm.
Understanding School Administration Costs
What Counts as Administrative Costs?
We’re talking salaries for executives, human resources, finance teams, IT, legal support, auditing, and general office management. Basically, everything not directly tied to teaching.
How These Costs Have Changed Over Time
According to studies, the average administrative cost per pupil has increased since the academy model became widespread. While local authority schools shared services, academies often build their own structures from scratch.
The Financial Structure of Academies
Direct Funding from Central Government
Unlike traditional schools, academies get their money straight from the government. This cuts out the local authority, but it also means more responsibilities—and costs—land on the academy’s plate.
Role of Multi-Academy Trusts (MATs)
MATs were designed to manage multiple academies more efficiently. Sounds good in theory. But in practice? They’ve added extra layers of management, each with their own set of costs.
Increased Layers of Bureaucracy
Where once a headteacher and a few admin staff might suffice, now you have CEOs, CFOs, COOs, and other high-paid execs running the show.
Staffing and Leadership Expenses
Higher Salaries for Executives
It’s not uncommon for academy trust CEOs to earn six-figure salaries—sometimes more than the Prime Minister. These paychecks make a serious dent in budgets.
Duplication of Roles Across MATs
Instead of pooling resources, many trusts hire separate teams for HR, marketing, and finance—despite having schools in close proximity.
Consultants and Private Contractors
Need a service? MATs often bring in external consultants, driving up expenses even more compared to in-house or shared service models.
Procurement and Outsourcing
Shift to Private Sector Services
Academies frequently turn to private companies for everything from catering to IT support. These contracts aren’t always cost-effective.
Lack of Economies of Scale
Smaller trusts may not have the purchasing power to negotiate good deals, meaning they pay more for services than local authorities would have.
Financial Mismanagement Cases
We’ve seen headlines—academy trusts spending public funds on lavish expenses, questionable purchases, or poorly negotiated deals. The lack of oversight doesn’t help.
Buildings and Facilities Management
Capital Spending and Refurbishment
Academies often receive capital funding for new buildings or refurbishments. While that sounds positive, it can lead to overspending when there’s no centralized control.
Funding New Sites vs. Maintaining Old Ones
Some academies prioritize flashy new sites over maintaining existing facilities—another budget drain.
Governance and Oversight
Trust Boards and Their Costs
Every MAT needs a governing board, and they aren’t working for free. The need for regular meetings, reports, and compliance adds to the admin bill.
Auditing, Reporting, and Legal Fees
Compliance costs are significant. Annual audits, legal consultations, and frequent government reporting create a hefty admin workload.
The Impact on Classroom Budgets
Fewer Resources for Teaching and Learning
As more money goes to admin, less is left for books, supplies, tech, and enrichment programs.
Staff Reductions in Teaching Roles
In some cases, schools have had to cut teaching assistants or reduce specialist roles just to balance the books.
Comparative Studies and Statistics
Research on Costs Before and After Conversion
Studies have shown that administrative costs often increase after schools convert to academy status—particularly in standalone trusts.
International Comparisons
Other countries with centralized school systems (like Finland) spend significantly less on administration, allowing more funds to go directly to classrooms.
Voices from the Ground
Teachers’ Perspectives
Many educators feel overwhelmed—not just by workload but by the growing gap between classroom needs and administrative priorities.
Parents and Communities Weigh In
Parents have expressed concern about the lack of local accountability and the redirection of funds away from student-facing roles.
Political and Policy Perspectives
Government Stance on Academisation
The government continues to back the academy model, arguing it drives improvement. But critics say the cost-benefit ratio isn’t adding up.
Opposition and Think Tank Reports
Many independent reviews call for more oversight and a reevaluation of how academies are funded and managed.
Potential Solutions
Better Oversight and Transparency
Stronger financial scrutiny could rein in excessive admin costs and prevent misuse of public funds.
Return to Local Authority Control?
Some argue for a rollback of academisation, at least partially, to restore centralized efficiencies.
Reforming the MAT System
Streamlining MATs and encouraging resource sharing could help reduce unnecessary expenses.
Conclusion
Academies were meant to usher in a new era of educational excellence—but they’ve also brought complex financial structures and bloated administrative costs. While there’s no one-size-fits-all answer, it’s clear that a rebalancing is needed. If we want schools to truly serve students, we need to rethink how we fund and manage them.
FAQs
1. What is the main reason academies increase administrative costs?
Academies often build separate administrative structures, leading to duplication of roles and higher salaries for executives.
2. Do all academies have high administrative costs?
Not all, but many do—especially those in smaller MATs that can’t take advantage of economies of scale.
3. Can academies reduce their admin costs?
Yes, by sharing services, streamlining leadership, and increasing transparency.
4. How does this affect students directly?
Higher admin costs often mean less money for classroom resources, support staff, and extracurricular activities.
5. Is the government doing anything about this issue?
While the government supports academies, there’s growing pressure to improve oversight and control runaway spending.
