Key facts
- The UK government plans to cap academy school executive salaries at £174,000.
- This cap will apply to leaders of academy trusts in England.
- Pay increases for executives will be limited to the same awards given to teachers.
- Government approval will be needed for any advertised pay packages above the cap.
- The move aims to address concerns about "banker-style" salaries funded by taxpayers.
The UK government is preparing to implement a cap on the salaries of leaders within England's academy school trusts, aiming to curb what are described as "banker-style" pay packages. Education Secretary Bridget Phillipson is expected to announce a limit of £174,000 for executive pay, with any packages exceeding this amount requiring government approval. Furthermore, future annual pay increases for these executives will be aligned with the awards granted to teachers.
This initiative comes in response to concerns about the high remuneration of some academy trust leaders, with nearly 100 chief executives currently earning over £200,000 annually. A government source emphasized that these salaries are funded by taxpayers and that excessive pay risks diverting funds from frontline teaching. The move follows a commitment in February's schools white paper to address "unjustifiable" executive pay.
Recent reports indicate that some academy trust chief executives received pay rises greater than those given to classroom teachers, with some experiencing double-digit increases. Dan Moynihan, chief executive of the Harris Federation, was identified as the highest earner with a salary of £530,000, while Dayo Olukoshi of Brampton Manor trust earned £350,000. The proposed cap is not expected to affect the majority of trusts, as over 1,000 trusts have chief executive pay averaging £142,000.
Teaching unions, which have previously argued against inflated executive salaries, are likely to welcome the proposed cap. The announcement is anticipated to coincide with the release of recommendations from the government's independent review body on teacher pay. The Department for Education has recommended a 6.5% teacher pay rise spread over three years, though concerns remain about whether schools will receive additional funding to cover these increases.