IMP Software’s 2025 MAT CFO Insights Survey, based on responses from over 150 multi-academy trust finance leaders, reveals growing financial concerns across the sector despite many trusts describing their finances as “healthy.”
153 multi-academy trust finance leaders responded to the MAT CFO Insights Survey 2025, devised by IMP Software, in May and June 2025.
Whilst 78% of MAT representatives rate their Trust’s general financial position as healthy or very healthy – with 35% forecasting an in-year surplus and 22% break even in 2024-25, and 69% of respondents also saying that their forecast is better than projected at the start of the year; for 2025-26, 67% of respondents expect their surplus/deficit forecast to change from the current academic year, and of those 62% anticipate their trust’s financial position to get worse.
Among the headline findings from this year’s survey – capturing views from trusts of all sizes (the majority below 20 schools), and spanning primary, secondary and mixed provision, including 29 MATs with special/alternative – are:
- 48% of respondents say that their trust is financially vulnerable, and for 2024-25,43% of trusts are forecasting an in-year deficit.
- 65% of respondents report that their trust has dipped into reserves over the past 12 months to cover costs. Whilst 86% say this was planned at the start of the year, 88% shared this was more pronounced than in other years, and 80% expect this to continue.
- 69% of respondents are clear that the current funding announced for 2025-26 is not enough for their trust. 80% specifically report that their trust does not have enough funding for the SEND provision it needs to provide. 76% have capital works they need to do that they cannot currently afford.
- 82% of respondents state that National Insurance contributions have had a negative impact on budgets.
- 56% of respondents – the majority – are ‘Not at all optimistic’ about the prospects for MAT finance under the new government.
For MAT finance leaders, the biggest finance pain points they are expecting in their trust in 2025-26 are: Staff costs beyond funding increases (36%); Falling pupil numbers (28%); Changes to pupil profile e.g. increasing SEND pupils (21%); and Supply costs (11%). Overall, the majority of responding trusts (79%) can currently afford a 2% or more teacher pay award, and 54% said they could afford a 3% or more support staff pay award.
The main strategic measures MAT finance leaders are putting in place to improve their trust’s financial position are: Reduced education support staff (71% of respondents), ICFP (65% of respondents), and Centralising operations (61% of respondents). When asked what services or provisions will have to be removed or reduced to balance their budgets, should additional pay awards not be funded, respondents spoke about:
Staffing reductions
- Widespread reductions in school support staff, particularly teaching assistants, administrative, pastoral, and SEND support.
- How many schools are restructuring, considering or already implementing redundancies; and leadership roles and non-contact time are being reviewed and reduced.
- Some schools plan to combine classes or increase teacher workload (e.g. out-of-subject teaching, reduced PPA).
Curriculum and provision cuts
- Narrowing curriculum, especially at Key Stage 4 (e.g. dropping GCSE options), and cuts to enrichment activities, music, trips and sporting events.
- Reduced resources for low-attaining or vulnerable pupils.
- Some schools splitting year groups due to low pupil numbers.
Capital and non-staff expenditure
- Deferring capital projects.
- Reducing IT investment.
- Centralised procurement and tighter spending controls.
Will Jordan, Co-Founder of IMP Software, said:
“As was the case in our MAT CFO Insights Survey 2024, the majority of MATs still describe their trust’s financial position as healthy or very healthy. This is undoubtedly due to the strategic approaches taken by expert MAT finance leaders to ensure their forecast is better than projected at the start of the year. However, as we look into 2025-26, change is afoot and many anticipate their financial position will worsen.
“Trusts are using reserves to balance 2025-26 budgets, but these are unsustainable long-term, especially with falling pupil numbers. There remain concerns about the ability to fund pay awards. We asked MAT CFOs ‘Is the current funding that has been announced for 2025-26 enough for your trust?’ Before the 22nd May pay award announcement, only 25% said ‘Yes’, and following the announcement, this only rose to 34%, so whilst this additional funding is of course welcome, it is simply not enough to make a dent in the ever-increasing financial struggle that MATs are facing.
“The broader impacts being reported around rising SEND needs versus falling support capacity; larger class sizes and reduced pupil/student support services, and increased workload risks impacting staff wellbeing and educational standards, are concerning.”
Having published the MAT Finance Sector Insight Report 2024, informed by the findings of personalised benchmarking reports tailored to individual MATs, in October, IMP Software will launch its MAT Finance Sector Insights Report 2025. New expanding insights to look out for are around MAT finance teams, school-level benchmarking, higher-paid staff, FTE analysis, investment income, and degrees of centralisation.
