As MAT finances come under growing pressure, a difficult question is resurfacing: are central operations delivering value – or absorbing too much of the trust’s budget?
It’s not an easy conversation. MATs were built on the promise of economies of scale, shared services, and consistent leadership across schools. Centralisation allows trusts to make the most of limited resources and standardise everything from finance to safeguarding.
But recent reports are highlighting growing concern that rising central costs -particularly executive pay – are becoming harder to justify. This applies not just to internal scrutiny from trustees and headteachers, but also to external pressure from regulators, media and the wider public.
What the data shows
A number of credible sources point to a sharp rise in central team spend:– Schools Week reports schools losing up to 28% of their individual budgets to GAG pooling for central trust costs.
– Tes Magazine highlights trusts using reserves to cover growing payrolls and executive team costs.
– The Guardian questions the overall value for money delivered by high-salary executive roles in the current climate.
Why this matters now
The pressure isn’t just financial. It’s reputational.
With more MATs running in-year deficits, and some schools feeling the squeeze of reduced budgets, senior leadership spend is in the spotlight. Even where structures are sound, the optics of high central costs can damage trust between central teams and school leaders.
Trust boards are now expected to ask:
– Is our central team the right size and cost for our trust’s scale and complexity?
– Are executive pay levels benchmarked against similar organisations?
– Can we demonstrate the impact of central services on school outcomes and efficiency?
Challenges MATs are facing
In our work with trusts, we regularly hear:
– Benchmarking gaps: Trusts struggle to compare themselves meaningfully to peers.
– Tension around GAG pooling: School leaders don’t always see the benefit clearly.
– Value for money case: It’s hard to communicate the “why” of central roles.
– Trustee confidence: Boards want clear reporting and assurance to support decisions.
What we recommend
- Benchmark central costs and executive pay.
- Review GAG pooling policies and transparency.
- Clarify and report on central services’ impact.
- Prepare trustees to ask the right questions.
- Think ahead, not reactively.
How Botham Accounting can support
We help MATs across the country to:
– Benchmark costs and staffing against public data
– Review GAG pooling and reserves policy
– Deliver internal audit and assurance aligned to ESFA expectations
– Provide training for trustees and SLT on financial oversight
We’re a trusted partner for MAT boards looking to balance governance, sustainability, and strategy in complex times.
If you would like to get in touch reach out to Charles Burrell below.
