Trusts rocked by cyber-attacks have been barred from paying ransoms to hackers and CEO pay must now be “defensible”, new academy funding rules state. The latest version of the academy trust handbook, , also states chains should hit government tech targets by 2030 and that they will no longer be slapped with notices to improve (NtIs) for educational performance. Here鈥檚 what you need to know鈥 1. 2030 tech target Last year, the handbook told trusts to 鈥渞efer鈥 to the DfE鈥檚 digital and technology standards, which 鈥渨ere developed to support trusts in making more informed decisions鈥 about tech. But now leaders 鈥渟hould have an understanding of the extent to which they are meeting鈥 the standards. They should also be 鈥渨orking towards meeting the following six core standards鈥 for broadband, network switching, wireless networks, cyber security, filtering and digital leadership and governance 鈥渂y 2030鈥. Currently, just 16 per cent of schools meet them, government has said. 2. Executive pay must be ‘defensible’ In a this morning, DfE funding and financial oversight director Andrew Thomas said the new handbook provides 鈥済reater clarity about the process for trusts determining executive pay鈥. The tweaked guidance stated boards must document how they ensure their approach to CEO wages are 鈥渢ransparent, proportionate and defensible鈥 in an 鈥渁greed pay policy鈥. Among other things, it will include 鈥渞obust decision-making that demonstrates justifiable pay鈥 and approval by the board. Decisions over executive salaries 鈥渕ay be challenged by DfE鈥, the new guidance adds. This is a change from the 2024 handbook, which said “inappropriate pay and benefits can be challenged by ESFA, particularly in instances of poor financial management of the trust”. 3. Don鈥檛 pay ransomware demands Previous guidance said trusts had to secure 鈥減ermission from ESFA to pay any cyber ransom demands鈥. But now they鈥檝e been told they 鈥渕ust not pay any cyber ransom demands鈥. The updated handbook noted that such payments have 鈥渘o guarantee of restoring access or services and is likely to result in repeat incidents鈥. A new point added to the handbook also confirmed that the department 鈥渕ay recover funds where there is evidence of irregularity or fraud鈥. 4. No NtIs for educational performance In prior years, trusts could be slapped with NtIs on governance grounds if board members lacked 鈥渢he skills, knowledge and experience to exercise effective oversight of鈥 performance, including educational performance鈥. This has been removed from the new funding rules. Notices can now only be issued on governance grounds if boards aren鈥檛 鈥減roperly constituted鈥, trustees fail to comply with 鈥渟afeguarding duties鈥 or if bosses do not 鈥渕anage their school estate and maintain it in a safe working condition鈥. Government covering ‘financial support and oversight for academy trusts’. 5. No news on EV schemes A pause was placed on electric vehicle salary sacrifice schemes 12 months ago following cross-government discussions. DfE said this would be in place while 鈥渨e clarify our approach and gather data on how trusts are planning to implement them鈥. Thomas revealed talks remain 鈥渙ngoing. We are committed to informing you when a decision has been made and the handbook will be updated accordingly”. 6. Repercussive payments definition expanded The handbook also expanded the definition of what constitutes a 鈥渞epercussive鈥 payment to include if it could 鈥渃ause additional costs to arise for other parts of government鈥. All novel, contentious and repercussive must be referred to DfE for approval before money changes hands. It is not known what prompted this change, but some have speculated it could be linked to the ongoing teacher pensions row between the DfE and United Learning, the country’s biggest academy trust. The trust wants to offer its teachers the option to have a less generous pension for an increased salary. But government has opposed it amid concerns over the initial loss of revenue to the Treasury in the short-term, particularly if other schools followed suit or the proposal was introduced in other public sectors.