One hundred academy trusts have disappeared over the past year amid growing numbers of mergers and takeovers. Sector leaders highlight the benefits of scale, limited other ways to grow as academisation has slowed and chief executive retirements that make tie-ups easier. But merging trusts also face hostility to takeovers, logistical headaches and limited guidance and funding, threatening to undermine the recent white paper鈥檚 consolidation drive. Schools Week 颈苍惫别蝉迟颈驳补迟别蝉鈥 MAT merger numbers Trust numbers have soared over the past decade, but more recently begun tailing off. The decline comes in spite of government鈥檚 academisation push. New analysis of government figures shows 2,460 trusts were running schools in October, down by 100 or 3.9 per cent year on year. There were 23 fewer multi-academy trusts (MATs) and 77 fewer standalone academies. The pace of trusts disappearing has also increased slightly, from 8.1 a month between June 2019 and October 2021 to 8.3 a month since. The real figure for closing-down trusts could be even higher if they were offset by new trusts 鈥 though it could also be inflated, as some disappearing trusts will have rebranded rather than closed. Andrea Squires, education partner at Winckworth Sherwood, said the law firm had been busier with mergers than conversions for three years. Jeff Marshall, an academy consultant, reports a 鈥渟teady increase鈥 since 2020. Schools Week analysis also shows more trusts seeking government sign-off for mergers this year. The Department for Education鈥檚 regional directors weighed up 12 such proposals at their most recent advisory board meetings this term, versus eight proposals a year earlier. Meeting minutes from July show a similar trend, up from nine last year to 13 this year. 鈥楾aking the best of both trusts鈥 Marshall said he saw interest spike after ministers revived their all-MAT vision last year, and again with March鈥檚 white paper. It set a 2030 all-MAT target, with most trusts expected to be 鈥渙n a trajectory鈥 to have at least 10 schools or 7,500 pupils. But experts and leaders interviewed by Schools Week said many trusts were warming to tie-ups independently of ministers鈥 wishes. Ratcliffe Most proposed mergers scrutinised by government this term were voluntary, and highlighted educational and financial benefits. 鈥淎s MATs grow they see the sense in working together more,鈥 said Squires. Garry Ratcliffe, CEO of The Galaxy Trust, said launching joint peer support groups for both inclusion and business staff with The Pathway Academy Trust had already proved 鈥渞eally useful鈥 ahead of a formal merger in January. 鈥淲e鈥檙e taking the best bits of both trusts. Staff also looked at what worked best from each of our finance, personnel and safeguarding systems.鈥 Andrea Arlidge, CEO of Futura Learning Partnership, said its ongoing merger would enable 鈥渋nvesting where we couldn鈥檛 before, like automating processes and hiring for data and insight posts.鈥 Covid exposed ‘limited resilience’ of standalone trusts For some trusts, tie-ups are responses to challenges. A spokesperson for Rawlins Academy said it did not feel 鈥減ushed鈥 to join the eight-school Embrace MAT, but it had been 鈥渃ontinually reinventing the wheel鈥 as a standalone trust (SAT). He said Covid highlighted SATs鈥 limited resilience. 鈥淚f one person wasn鈥檛 in, that was in some cases a whole function out of action.鈥 Advisory board minutes highlight its 19th century buildings too. The spokesperson said the move will 鈥渟trengthen鈥 its access to capital funding and expertise to manage it. Ian Anderson, education director at the Skinners Company, said merging its five sponsored SATs was mainly to share 鈥渆xpertise, experience and economies of scale鈥 in a 鈥渢ight鈥 budget climate. But it is also to avoid losing almost 拢1 million in guaranteed annual building funding, with government reportedly tightening eligibility for grants. Larger trusts and some other groups receive such cash automatically, whereas trusts with under five schools or 3,000 pupils must bid for it. 鈥楲acklustre鈥 academisation drives up rate Meanwhile, recent 鈥渓acklustre鈥 academisation rates have encouraged MATs keen to grow to consider mergers instead, according to Squires. She claimed regional directors have been 鈥渢argeting SATs and smaller MATs鈥 too, while school resource management advisers鈥 visits have 鈥渢ended to drive trusts towards merger鈥 to strengthen central teams. One regional director recently agreed a SAT-MAT tie-up followed intervention over 拢1.5 million in overclaimed maintenance funding at Queen Elizabeth Grammar School. Last week Lord Knight, chair of the E-ACT trust, also predicted trusts rescuing 鈥渦nviable鈥 peers amid financial pressures will become increasingly common. Emma Knights, CEO of the National Governance Association, which co-released , expects numbers to keep rising 鈥 but noted they still remain relatively uncommon. Most mergers see one trust鈥檚 schools legally transfer to another鈥檚, so mergers could be expected to partially show up in academy transfer data. But only 1.8 per cent of academies moved trusts in 2021-22. Calls for merger guidance and cash Leaders highlight logistical challenges. Ratcliffe said it felt like 鈥渢he stress of a house buyer pulling out nine times鈥. Arlidge 鈥淧utting the business case together鈥檚 a hassle, convincing everyone鈥檚 a hassle, but it鈥檚 your job to sell the dream.鈥 He noted many small trusts lack capacity. Rob Pavey, head of Cheney School, part of a three-school trust that joined the now 28-school River Learning Trust in February, was one of several leaders who want more government merger guidance and examples. He said their merger had been 鈥渙verwhelmingly positive鈥, but initially finding the 鈥渞ight fit鈥 trust had not been easy, and it had 鈥渢aken work to harmonise finance and HR systems鈥. Learning Partners is also still combining compliance, assessment and management information systems, 14 months post-merger. CEO Jack Mayhew noted it had had to align different top-slices and do some limited 鈥渙pen, but not forced, rationalisation鈥 of roles. Arlidge said merging had been 鈥渞eally exciting鈥 but 鈥渉ard work鈥, and the lack of dedicated merger funding – unlike conversions 鈥 鈥渃ould mean some don鈥檛 happen鈥. Is it a merger, or takeover? For Ratcliffe, the biggest challenge is 鈥減erception鈥, however. 鈥淲hen鈥檚 a merger a merger, or a takeover?鈥 Polling by Arbor found most trusts keen on mergers are seeking similar-sized or smaller trusts, not larger ones. Most signed off recently are either similar-sized trust mergers, or SATs joining MATs. 鈥淭he words never used are 鈥榯ake over鈥 as this tends to trigger sensitivities,鈥 said Squires. Q&A documents for Learning Partners鈥 merger last year illustrate common fears, with questions like 鈥渨ill the new trust take money?鈥 and whether 鈥渟avings mean redundancies鈥. Similar-sized trusts often stress plans are 鈥渕ergers of equals鈥, sometimes underlined by new names 鈥 such as Learning Partners, which united a five-school and seven-school trust. The largest such merger signed off recently is 14-school Futura Learning Partnership鈥檚 tie-up with 13-school Cleveland Learning Trust, though Arlidge said it was not unusually large. Leaders say extensive consultation can settle nerves and secure buy-in, however. Some trusts launch joint shadow boards and staff working groups pre-merger to build relationships and help design the joint trust, as well as parent forums and staff drop-in sessions. 鈥楨asier with shared values鈥 Merging is 鈥渕uch more likely to be successful鈥 when trusts share values and do thorough due diligence, Squires said. For Nick Osborne, CEO of the Maritime Academy Trust, which merged in 2020 with Barnsole Primary Trust, 鈥渢he biggest challenge is aligning culture鈥 Even similar values may be defined differently, and 鈥渆xpectations have to be reset through clear, frequent communication鈥. Mayhew Trusts need 鈥渂rutally honest鈥 conversations pre-merger about their rituals, expectations and less tangible things 鈥渘ot normally on a tick list鈥. It also often takes significant change to make mergers conceivable. Arlidge said she was unaware of any mergers that hadn鈥檛 been partly triggered by one CEO鈥檚 departure. These can prompt serious reflection on trusts鈥 futures, and make choosing the post-merger CEO easier. Mayhew noted many founding CEOs were likely to retire over the next decade. 鈥淒oes that provide an opportunity to consolidate MATs?鈥 But Marshall said many strong, smaller trusts were happy with the status quo. The white paper contained few levers to force growth. One leader said recent political upheaval was beginning to 鈥渢ake the pressure off鈥, with fewer people 鈥渏umping around to join a MAT鈥.
Pete 1 December 2022 I am assuming that as in the NHS – the managers will get fat Pay-outs upon “redundancy” and then just come back to work as a consultant or find another Academy or Trust School to work for – and do it all over again! What has this to do with Education ? Just a money making scheme for those running the show!!! Meanwhile – the teachers and staff are considering strike action over pay??? Madness – this even bigger MATs – Why not LEA’s – with Chief Officer pay controlled – in Local Authority pay scales ?