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In a sector grappling with unparalleled change, our first Thought Leaders Series panel discussion provided school and trust leaders with a thought-provoking platform, delving into today’s most pressing challenges and exploring avenues for innovation and impact. Conversations spanned financial constraints, legislative shifts, and the importance of collaboration, shedding light on both obstacles and opportunities facing education leaders.
With few opportunities for education professionals to come together and analyse the huge changes across the sector, we recognised a real need to create these opportunities for open discussion. Bringing diverse perspectives to the table - from small LA schools to super MATs – is essential in navigating these shifts effectively.
Hosted by EPM’s co-owners and education advocates, Jen Elliott (CEO) and Andy Mackey (COO), we were joined by three distinguished guest speakers: Nick Osborne (CEO and founder of Maritime Academy Trust), Elly Clemmans (Director of People at Skinners Academy Trust), and Peter Knight (COO at Trinity Multi-Academy Trust).
Together, they delved into ‘Navigating an evolving landscape and the impact on school and trust leadership’ at a time when external factors such as Ofsted positions, shifting demographics, employee relation perspectives, and school funding (to name a few) all appear to be on high alert at the same time for the sector.
Financial pressures driving creativity
Government cost-cutting measures have created a challenging financial environment. With a 2% cut to the DfE’s cost base, amounting to £1.9 billion in savings, education leaders face tough questions about how planned reforms will unfold. Reflecting this uncertainty, 67% of attendees expressed apprehension, suggesting that the recent changes paralyse the sector.
Despite the constraints, some see this as an opportunity for the future agenda for schools and academies.
Peter Knight remarked, “It’s an interesting world we’re in where we have quite a lot of mixed messages – the result in the survey very much reflects this in lots of ways. But, it provides an opportunity for innovation because when there is chaos, that’s the time to seize opportunity”. His sentiment aligned with the remaining 33% of attendees who agreed that rather than paralysis, the recent changes actually provide an opportunity for innovation.
Financial strain is prompting trusts to reevaluate resource allocation and explore innovative partnerships, especially following the removal of TCaF funding. This raises questions about whether the government’s approach signals a preference for larger trusts capable of self-sustained growth (without the need for TCaF).
Nick Osborne observed, “Some trusts could absorb the amount that would have previously been covered by TCaF funding, if it meant growth in their Trust. When you merge, when you grow, that brings additional resources to central teams”, echoing the argument that growth pays for itself via economies of scale. However, while mergers present opportunities, they also create vulnerabilities for smaller trusts as they navigate their strategic direction.
The role of trusts and local authorities
The evolving dynamics between trusts and local authorities emerged as a complex topic, with Peter Knight posing a critical question: “Is legislation trying to deconstruct the academy structure by stealth, or is it an opportunity to strengthen it?”
As local authorities gain more influence in areas like school improvement, trust leaders face the challenge of balancing collaboration while ensuring their own sustainability.
Nick Osborne highlighted how government priorities have shifted from trust growth, now prompting trusts to proactively prove their value. “As trusts, we need to demonstrate the value of being in a trust rather than assuming schools will join one. It changes the emphasis of the focus to consider whether we are taking the benefits of being one legal entity across a number of schools”, he noted.
Both Peter and Nick agreed that trusts are increasingly embracing their civic duty, creating greater opportunities for partnerships with local authorities and that this has provided a counter to the negative press surrounding trusts.
Adapting to declining pupil numbers
Another external factor hugely affecting the sector is falling birth rates, leading to excess capacity in schools and forcing tough decisions, from closures to reduced admissions.
Peter Knight pointed to the stark realities: “We’ve got to grapple with pupil numbers versus places and there is a gap”, this reality was further exemplified by Lambeth where 4,000 spaces are being cut, and there’s no quick solution to the excess capacity. It’s a complex aspect to deal with in terms of balancing a double-dip in birth rate through COVID with the bulge of pupils currently in secondary places.
Nick Osborne described the environment where pressures on pupil numbers and school closures are huge as “almost like survival-of-the-fittest, schools or trusts with reserves will be able to ride it out as other schools close.” To address this looming problem, Maritime Academy Trust is investing in nursery provisions and the pre-nursery work they do with local communities to increase enrolment and positively impact children at an earlier age.
Embracing change in employment law
One of the biggest changes for the sector and reflected by a vast amount of work at EPM is understanding the minefield of employment changes as they happen and supporting customers with these.
Upcoming employment law reforms add another layer of complexity, as outlined by Elly Clemmans, “this is a huge change that we’re seeing, with 28 proposed reforms under this particular Bill. It’s huge. We haven’t seen anything this big for a very, very long time and I wouldn’t even say in my lifetime actually”. As Director of People at Skinners Academy Trust, Elly reassured attendees that many schools already exceed statutory minimums, forming a solid foundation for compliance.
She also encouraged leaders to view these changes as an opportunity, particularly when it comes to recruitment and retention, which will be a focus for the majority of schools: “While there’s initial panic, these changes offer a chance to rethink recruitment and retention. The legislation should provide a good footing when you’re having conversations with stakeholders, particularly around flexible working”.
Financial realities and strategic prioritisation
Budget constraints remain a dominant concern, with 50% of attendees citing this as their biggest challenge.
Peter Knight emphasised the need for prudence and foresight, for example proactively forecasting for a 3% pay increase ahead of the agreed pay award, “the amount of funding going into education will remain limited. It’s about achieving the best value for money while maintaining reserves within ESFA guidelines.” Last year, this was outlined as a need for a 10-20% reserve, as anything above would be looked into, and anything below would create concern – so hitting the sweet spot between these two figures and maintaining your organisation is crucial.
For many trusts, staffing – comprising 80% of their costs - remains their most valuable asset, and therefore a top priority where a huge difference can be made. Proactive planning to attract and retain talent is critical, particularly in different geographical regions where vacancy gaps are anticipated.
Elly Clemmans shared insights from School Workforce data, “We know there’s a large percentage of people choosing early retirement, but we’re not seeing ECTs entering at the same rate, leading to significant potential vacancy gaps amongst pools of people”. With this sort of analysis available it’s worth looking at the demographics within your Schools to see where this future issue can be plugged.
Elly stressed the importance of understanding employee aspirations, “What does your PD and your CPD offer look like? You need to really understand what your ECT employees want personally when doing their performance management or appraisals – everyone will want something a little different.” Afterall, how your employees feel about work on a Sunday is a big driver of retention and whether they’re looking to stay in their role.
Strategic prioritisation also includes addressing disparities at a granular level for each education setting. Investment in technology and infrastructure may take a back seat, with immediate focus placed on stabilising and optimising staffing costs.
Staying the course amid uncertainty
When asked whether recent changes have affected their plans for the year, most schools and trusts reported maintaining their strategic focus, with only 22% indicating a need to radically adjust their priorities off the back of recent developments.
For Nick Osborne, the direction remains consistent, “The strategic direction doesn’t change; it’s how we work that adapts. We’re still dealing with the explosion in SEND, improving attainment, balancing the books, and dealing with complaints, but how we achieve these priorities has to reflect the external environment.”
For many trusts, this means forging stronger partnerships with local schools. “Uncertainty in the academy sector has led trusts to spend more time working with local schools,” Nick Osborne added.
Peter Knight emphasised the importance of collaboration, having completed a big think piece on 3-year strategy where their education team went out to learn from other organisations, “It’s easy to become insular. Looking outward at sector trends and building partnerships is critical, especially for trusts still growing.”
Moving forward
Our session concluded with a call for adaptability and collaboration, demonstrating that big change brings opportunities to adapt, survive, and grow. By reframing challenges as opportunities, the sector can navigate uncertainty with innovation, resilience, and a focus on educational excellence. Our speakers highlighted the need for creativity, particularly in embracing tools and strategies to enhance employee wellbeing across schools and trusts.
The diverse and changing landscape means schools and trusts must balance agility with commitment to their core priorities. Strategic reflection and creative problem-solving will be key to shaping the path forward.
EPM’s Director of Leadership & Trust Development, Rachel Kershaw, joined the conversation to reflect on the shifting strategic priorities among the sector surrounding mergers, “six months ago, everyone was working on similar strategies. Now, it’s vastly different. For some of the smaller trusts it’s a bit of panic around what to do next, which strategies to link, which direction to take and what’s the government going to do next.”
Our advice for navigating this landscape? Pause, reflect, and ensure your strategy aligns with your Trust’s unique needs, rather than reacting solely to external pressures.
EPM has seen growing interest in our Options Appraisal service, which helps schools and trusts consider all the options on the table, align with DfE guidance, and weigh up the pros, cons, costs, and funding sources for their unique settings. Contact our Leadership & MAT Development Team for recommendations and to learn about our full range of services.
