{"id":237589,"date":"2025-11-10T05:00:00","date_gmt":"2025-11-10T05:00:00","guid":{"rendered":"https:\/\/schoolsweek.co.uk\/?p=237589"},"modified":"2026-02-17T14:57:44","modified_gmt":"2026-02-17T14:57:44","slug":"savings-platform-plan-to-help-schools-get-better-reserve-returns","status":"publish","type":"post","link":"https:\/\/schoolsweek.co.uk\/savings-platform-plan-to-help-schools-get-better-reserve-returns\/","title":{"rendered":"\u2018Savings platform\u2019 plan to help schools get better reserve returns"},"content":{"rendered":"\n

The government plans to \u201csignpost\u201d cash-strapped schools to \u201csavings platforms\u201d offering high-interest savings accounts to help ease funding worries by \u201cunlocking\u201d the sector\u2019s \u201csubstantial reserves\u201d.<\/p>\n\n\n\n

Department for Education (DfE) officials are urging companies to come forward<\/a> and tell them what they can offer schools as they target leaders\u2019 \u201cunder-utilised assets\u201d.<\/p>\n\n\n\n

Schools will be forced to find more savings to deliver teacher pay rises over the next three years, which the government has suggested should be 6.5 per cent in total.<\/p>\n\n\n\n

Schools Week<\/a>\u00a0<\/em>analysis shows that trusts\u2019 investment takings have increased to almost \u00a3140 million. But nearly a third of academy chains did not make a penny from investments.<\/p>\n\n\n\n

DfE to signpost schools to invest<\/strong><\/h3>\n\n\n\n

In a new tender, DfE noted so-called \u201csavings platforms\u201d could be \u201ca useful solution for some\u201d schools to \u201cimprove their banking arrangements\u201d by earning interest on cash balances. <\/p>\n\n\n\n

The services allow schools to access rates from several banks in one place, without needing to set up new accounts. <\/p>\n\n\n\n

This allows \u201cthem to benefit from the best deals in the market\u201d, the department said. <\/p>\n\n\n\n

It wants to speak to the suppliers of these platforms to \u201cunderstand in detail\u201d what they offer and how they work. <\/p>\n\n\n\n

\u201cOur intention is to then signpost schools to those we consider to be the most suitable,\u201d the tender added. <\/p>\n\n\n\n

\u201cIn return we will be asking suppliers of those platforms to provide us with regular data to show take-up of their service by schools, and the amount of interest earned.\u201d <\/p>\n\n\n\n

\u2018Under-used assets\u2019<\/strong><\/h3>\n\n\n\n

The department will not \u201citself be entering into contractual relationships with providers\u201d or receive payments from the signposted service. <\/p>\n\n\n\n

In its evidence to the School Teachers\u2019 Review Body, the government identified \u201csignificant potential in under-utilised assets across the school sector, including sizeable financial reserves and physical assets such as land and buildings\u201d.<\/p>\n\n\n\n

Some of the opportunities \u201cinclude better banking solutions and, in particular, making use of the substantial reserves in our system, which totalled more than \u00a36 billion in 2023-24\u201d. <\/p>\n\n\n\n

This equates to \u201c10 per cent of core schools budget, which could be unlocked and used to benefit children directly\u201d.<\/p>\n\n\n\n

Academy rules state leaders \u201cmay invest to further the trust\u2019s charitable aims, but must ensure investment risk is properly managed\u201d. <\/p>\n\n\n\n

They must \u201cexercise care and skill\u201d when making decisions, taking advice where appropriate, and ensure \u201cexposure to investment products is tightly controlled so security of funds takes precedence over revenue maximisation\u201d.<\/p>\n\n\n\n

\u00a3136m from investments<\/strong><\/h3>\n\n\n\n

Analysis of government data suggests trusts generated just over \u00a3136 million in investment income in 2023-24 \u2013 a sharp increase on \u00a352 million the year before. <\/p>\n\n\n\n

\"John
John Barneby<\/figcaption><\/figure>\n\n\n\n

A report by the Kreston group of accountancy firms attributed the rise to higher interest rates, which \u201chas encouraged trusts to focus on deposit returns\u201d. But it is \u201conly in the last year that good treasury management has become more widespread\u201d it said. <\/p>\n\n\n\n

Andi Brown, of academy consultancy firm SAAF Education, said in some cases \u00a3100,000 of additional revenue could \u201cmake the difference between retaining staff or needing to reduce headcount in the future\u201d.<\/p>\n\n\n\n

Twelve trusts made more than \u00a31 million last year. United Learning Trust (\u00a35.5 million), Harris Federation (\u00a33.7 million) and Oasis Community Learning (\u00a33.3 million) brought in the most. <\/p>\n\n\n\n

United Learning Trust said the cash \u2013 the majority of which was generated through bank interest \u2013 was \u201cultimately spent in our schools\u201d. The trust is \u201ccareful with these investments and the returns are proportional to the size of our reserves as [England\u2019s] largest MAT\u201d. <\/p>\n\n\n\n

30% not investing<\/strong><\/h3>\n\n\n\n

Oasis chief executive John Barneby added that the sum his trust generated came \u201cgenerated through low or no-risk, short to medium term investments with our banking partner\u201d. <\/p>\n\n\n\n

By earning \u201cinterest on temporary yet reliable balances, we maximise resources without compromising security or compliance\u201d he said. <\/p>\n\n\n\n

But he added: \u201cNot all trusts have the same capacity or structures, which explains variation across the sector. Like many large organisations, we manage significant cash flows, and it is both responsible and expected that we steward these funds wisely.\u201d<\/p>\n\n\n\n

Kreston\u2019s research showed the largest trust was generating \u00a335 per pupil, compared with \u00a325 generated per pupil for small MATs. <\/p>\n\n\n\n

However, our analysis shows 30 per cent of trusts (714) generated nothing from investments. Nonetheless this figure was down from 44 per cent (1,068) the year before.<\/p>\n\n\n\n

But schools \u2018need more cash\u2019<\/strong><\/h3>\n\n\n\n
\"Leora
Leora Cruddas<\/figcaption><\/figure>\n\n\n\n

Julia Harnden, deputy director of school leaders\u2019 union ASCL, said many schools\u2019 reserves had been eroded by squeezed funding.<\/p>\n\n\n\n

While the DfE initiative was done with the \u201cbest of intentions \u2026 the underlying problem doesn\u2019t go away\u201d she said.<\/p>\n\n\n\n

Leora Cruddas, chief executive of the Confederation of School Trusts, added that any money made through investments is \u201ca fraction of the costs schools are facing\u201d. <\/p>\n\n\n\n

The DfE said it aimed to launch a new programme \u201cshortly\u201d to help schools to \u201cmaximise value from every pound\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"

Government thinks vision will ease school funding woes by ‘unlocking’ the sector’s ‘substantial reserves’ <\/p>\n","protected":false},"author":311204,"featured_media":237567,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[4],"tags":[32,28,239,413],"post-theme":[2425],"class_list":["post-237589","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-academies","tag-dfe","tag-education-policy","tag-school-finances","post-theme-school-funding"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t