VIEWS & OPINION
Building forward-looking MAT financial visibility and understanding Comment by WILL JORDAN, Co-Founder of IMP Software
In a rapidly evolving educational landscape, and in a period where challenging economic conditions imposed on Multi-Academy Trusts (MATs) have led to tough decisions, effective financial management is more crucial than ever.
The MAT Finance Sector Insights Report 2024 compiles future budget forecasts from 267 trusts (representing more than 3,000 schools) and is the only forward-looking analysis of trust finances to cover the period 2024/25 to 2026/27. Here are four key findings from the report: 1. Trusts expect reserves to drop – and it’s worse for primary-only MATs
According to the Education and Skills Funding Agency (ESFA), reserves below 5% of a trust’s income can be a sign of financial instability, leaving trusts vulnerable to unforeseen challenges.
The report paints a worrying picture, especially for trusts that serve predominantly primary schools. Here, nearly 40% of MATs expect their revenue reserves to dip below the 5% safety margin by the end of 2026. This is a clear indicator that many primary-majority trusts foresee rising costs outpacing income growth, leading to budget deficits. On the other hand, MATs with a majority of secondary schools expect to fare somewhat better. Fewer than 15% of these trusts are predicted to experience a similar dip in reserves over the same period, suggesting secondary trusts might have more room to absorb rising costs. 2. Difficult decisions on staffing are inevitable Among primary-majority MATs, a nearly 5% reduction in teacher numbers is predicted, along with almost 6% fewer teaching assistants by 2027. These cuts could impact class sizes and the level of support for pupils with additional needs.
Secondary-majority MATs are projecting smaller cuts, around 1%
in teacher numbers and nearly 2% in TAs. While reductions are less dramatic, they still highlight the strain that trusts are under to balance rising costs with declining reserves.
A key factor driving these cuts is the projected 17% increase in teacher costs over the next three years. With the average cost of a teacher rising from just under £60,000 in 2022/23 to over £70,000 by 2026/27, many MATs find themselves making painful decisions about staff levels. 3. Declining pupil numbers and financial pressures For primary-majority MATs, a forecasted 2% decline in pupil numbers by 2026/27 adds further financial pressure. Fewer pupils means less funding. This further compounds the need for staff reductions as trusts attempt to balance their budgets.
Secondary-majority trusts, meanwhile, are expecting a 3% increase in pupil numbers, which could help offset some of the financial challenges. However, even these trusts are not immune to cost-cutting measures as the overall financial outlook remains precarious.
The cuts to primary teaching staff are more than double the projected drop in pupil numbers, and secondaries are still projecting cuts, even though their pupil numbers are growing. 4. The impact of the Core Schools Budget Grant On a more positive note, the government’s announcement of the CSBG in July 2024, designed to help cover a 5.5% increase in teachers’ pay, has provided some relief for MATs.
Before this announcement, more than 60% of trusts forecasted their reserves would dip below the 5% threshold. After the CSBG was factored in, this number dropped to 37%, indicating the funding boost has helped prevent some of the worst-case scenarios for many trusts. However, despite this financial lifeline, earlier knowledge of the funding increase could have spared trusts from making tough decisions, such as cutting staff or trimming services that are essential for maintaining quality education.
A ‘code of conduct’ is needed to establish clear
guidelines for GenAI’s ethical use in universities Comment by ROB TELFER, Director of Higher Education, D2L
In recent years, artificial intelligence (AI) has had a profound impact on the way we create, work - and more recently, how we learn. As students increasingly recognise the benefits of AI, the technology is becoming more integrated into daily workflows. A survey by the Higher Education Policy Institute (HEPI) discovered that 53 per cent of undergraduate students were using AI to speed up the learning process as well as improve their coursework.
One of the more obvious reasons this is sometimes frowned upon is its impact on academic integrity. Instead of students spending time in the library and crafting convincing, well-sourced assignments, they might now simply ask a generative AI tool to do the work for them. This raises understandable concerns.
According to recent reports, universities across Scotland have taken action against hundreds of students in the last two years for using generative AI to create content and submit it as their own. This is why clear guidelines are needed to ensure the ethical and responsible use of AI in education.
Many universities across the UK have published statements on their websites addressing the use of AI in assignments as academic malpractice. Ironically, one of the tools already in use to detect plagiarism today is a form of AI, which is further proof that it’s not the technology that poses the problem but the way it’s being used. An alternative approach is to introduce an enforceable code of conduct. AI literacy: the way forward?
Becoming ‘AI-literate’ is going to be essential, and higher education institutions play a central role in making that happen. For students, it helps future-proof their degrees and can make them more appealing
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to employers by showcasing their knowledge of ethical AI use. At the same time, integrating AI into education brings plenty of benefits for the institutions themselves.
When used well, AI can engage students and make course content more interactive. Quizzes and gamification make learning more enjoyable and give students a chance to test their knowledge in a low-pressure setting before exams.
As universities invest more in AI, they can create personalised learning pathways. By embedding AI tools into the curriculum, students can become AI-literate naturally, without resorting to unethical uses, while gaining the skills to make the most of the technology. An AI-powered classroom
AI plays a key role in saving educators, course designers and administrators vast amounts of time in the production of user centric courses. AI can also support formative assessment by facilitating the production of interactive practices and tests which help learners deepen their understanding of course content.
AI can also provide increased visibility into student progress using predictive analytics. This helps educators identify students who may be at risk of under-performing or dropping out. By taking advantage of this early- warning system, educators can take appropriate remedial action before it’s too late.
Currently, many lecturers have never been officially trained in using AI. This can make it challenging to truly unlock the benefits of AI in higher education. With the necessary support in place, educators can build the confidence to explore new ways of learning that will benefit themselves and students now and for years to come.
By empowering students and educators to use AI responsibly, universities can enhance the learning experience and stay competitive in a rapidly shifting landscape.
February 2025
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