Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the potential financial impact of her decision to close the trust capacity and most establishment and growth funds on schools planning to academise.

Across the public sector there have been tough decisions to take on how money is spent to achieve the best value for taxpayers. This government is committed to fixing the foundations of the economy and ensuring public spending is on a sustainable footing. The government recognises the important contribution that high quality trusts have played, and continue to play, in raising standards. The department is focused on ensuring that spending helps to support every child so they can achieve and thrive.

The department keeps all of its programmes under review to ensure funding is targeted where it is needed most and on 1 November, we announced that we would be ending the academy conversion grant from 1 January 2025. At the same time, the department also informed trusts that had submitted grant applications for the Trust Capacity Fund, including the Trust Establishment and Growth Fund, that the most recent Window 4 funding round had been cancelled and that there were no plans for future rounds.

The academy trust sector is in relatively good financial health. The latest published data shows that 98.2% of academy trusts in 2021/22 had a cumulative surplus or a zero balance. At Budget, we announced an additional £2.3 billion for mainstream schools and young people with high needs for 2025/26, compared to 2024/25. This means that overall core school funding will total almost £63.9 billion next year, compared to £61.6 billion in 2024/25 after technical adjustments.

We will continue to support the institutions we fund by building financial management, school business and governance capability, and working with providers facing financial challenge.