Cutting academy reserves to level seen in LA schools would release £1.5 billion for spending in classrooms

Academies sector as a whole had £2.7 billion sitting in reserves in 2023-24, this website's analysis shows, as DfE says schools could be doing more to make use of their funds.

England’s schools system could release another £1.5 billion for spending in classrooms if academies reduced the funds they hold in reserve to the same level as seen in the non-academy sector, new analysis by Education Uncovered has revealed.

The academies sector as a whole had £2.7 billion sitting in bank accounts or investments as of 2023-24, financial disclosures available via the Department for Education’s website show.

That equated to 10.9 per cent the sector’s income, which is double the DfE’s suggested minimum rate of five per cent.

Meanwhile, the maintained school (non-academy) sector had £1.8 billion held in reserve as of 2023-24, which was 7.1 per cent of its total income.

Reducing the 10.9 per cent reserves held by academies to the 7.1 per cent seen in the local authority sector would release the £1.5 billion for spending in the classroom.