Academy school leaders in England face a new pay cap of £174,000, with future increases tied to teacher pay awards, as the government moves to rein in what it calls 'banker-style' salaries. The education secretary, Bridget Phillipson, is expected to announce the measure on Wednesday, alongside the annual teacher pay recommendation from the independent review body.
Nearly 100 academy chief executives currently earn more than £200,000 a year, with at least one exceeding £500,000, according to a survey by Schools Week. The highest earner was Dan Moynihan, chief executive of the Harris Federation, which runs 55 academies, with a salary of £530,000 last year. Dayo Olukoshi, executive principal of Brampton Manor trust, received £350,000 after a £20,000 pay rise.
New Rules Mirror NHS and Further Education
Under the proposed policy, academy trusts—including multi-academy trusts (MATs) responsible for state schools—will be required to follow executive pay rules similar to those used in the NHS and further education colleges. Government approval will be needed to advertise pay packages above £174,000, and annual increases will be limited to the same percentage awarded to teachers.
A government source told the Guardian: 'This is a straightforward matter of fairness, for both the taxpayer and teachers. 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. These are salaries paid for by the taxpayer, and excessive rates risk diverting funding from frontline teaching.'
Background and Union Reaction
The move follows the government's February schools white paper, which pledged to tackle 'unjustifiable' executive pay. A Labour source noted that the previous voluntary approach under the Conservatives had failed, and that 'six-figure salaries have soared in recent years.' The source added: 'Admirably, the Tories recognised this was a problem, but their voluntary approach didn’t work. That’s why we’ll now be treating executive salaries in school trusts no differently from the rest of the public sector.'
Nearly 90% of secondary schools in England are academies. The £174,000 cap is not expected to affect the majority of trusts, where chief executive pay averaged £142,000 a year across more than 1,000 trusts, according to Schools Week. The National Education Union has previously stated there is no justification for inflated chief executive salaries.
Teacher Pay Concerns
Teaching unions are also watching for the School Teachers’ Review Body (STRB) report, due later on Wednesday, and the government’s final decisions on teacher pay. The Department for Education has recommended a 6.5% pay rise spread over three years from 2026-27 to 2028-29, with higher awards in the latter two years. However, unions fear schools may not receive additional funding to cover the increases, as Phillipson’s remit letter suggested schools could use budget 'efficiencies' to find the money.
