ENGLAND — Education Secretary Bridget Phillipson is expected to announce a £174,000 cap on academy trust executive salaries on Wednesday. The cap would require government approval for any pay packages advertised above this threshold for academy trust executives.

Phillipson is also expected to limit future pay increases for academy trust executives to match the annual awards agreed upon for teachers. In the 2024-25 period, approximately one in four academy trust chief executives received a pay raise exceeding that given to classroom teachers.

A government source affirmed the position, stating, "This is a straightforward matter of fairness, for both the taxpayer and teachers." The source added, "Academy trusts are doing brilliant work for millions of children. But we simply cannot have double-figure pay rises on top of six-figure salaries." The source continued, "These are salaries paid for by the taxpayer, and excessive rates risk diverting funding from frontline teaching."

A Labour source expressed support, saying, "Many academies are doing great things and we continue to back them. But with freedom comes responsibility, and on executive pay, this has not always been exercised in the sensible way the public would expect." The source added, "Admirably, the Tories recognised this was a problem, but their voluntary approach didn't work, and six-figure salaries have soared in recent years. That's why we'll now be treating executive salaries in school trusts no differently from the rest of the public sector, making sure they're a fair and accountable use of taxpayer cash."

Currently, nearly 100 academy chief executives in England earn more than £200,000 annually, with at least one earning over £500,000. Among these high-earning executives, only a quarter are women. The government indicated its intent to address unjustifiable executive pay in its February schools white paper.

In her remit letter to the schoolteachers' review body, Phillipson suggested that schools could use budget efficiencies to fund pay raises. The Department for Education recommended a 6.5% pay increase for teachers spread over three years, from 2026-27 to 2028-29, with higher awards proposed for the second and third years of this period.