Why benchmarking matters more than ever in the UK academy sector

In a constantly evolving education landscape, academy trusts face growing pressure to deliver strong educational outcomes while demonstrating rigorous financial stewardship and operational efficiency. Funding constraints, rising costs and increasing regulatory scrutiny mean that trusts must make complex decisions with confidence and clarity. In this context, benchmarking has become an essential tool, not only for compliance, but for strategic insight and sustainable improvement.

The findings from our UHY Academy Benchmarking Report 2026 underline just how critical benchmarking has become for academy trusts operating in today’s environment. Drawing on data from over 1,500 academies, the report confirms that while some trusts are showing resilience, the sector as a whole remains under sustained financial pressure. Although the number of trusts reporting in-year deficits fell during 2024/25, a significant proportion continue to see reserves depleted - particularly primary schools, many of which experienced deficits in excess of £250,000.

Benchmarking enables trusts to understand whether these pressures reflect wider sector trends or underlying issues specific to their own cost base, governance or operating model. Without this comparative context, trusts risk reacting too late or focusing efforts in the wrong places.

What is academy trust benchmarking?

At its core, benchmarking involves comparing performance, costs and outcomes against those of similar organisations.

In the academy sector, this often includes financial metrics such as staffing costs, premises expenditure and reserves, as well as non-financial indicators such as pupil outcomes, attendance and staff deployment. The key is context.

A meaningful benchmark compares like with like: schools or trusts of a similar size, phase and demographic profile.

When interpreted correctly, benchmarking moves beyond compliance and becomes a diagnostic tool that helps trusts understand why performance differs and what can be improved.

Key findings from the UHY Academy Benchmarking Report 2026

Staffing costs

One of the clearest messages from UHY’s 2026 benchmarking report is the growing dominance of staffing costs across all trust types.

Staff expenditure now accounts for an average of 76% of total costs across the sector, with a growing number of trusts - particularly primaries. This makes staffing benchmarks indispensable.Comparing staff cost ratios, pupil‑to‑teacher ratios and teaching contact time allows trusts to test whether current staffing structures are sustainable and aligned with educational priorities. Benchmarking also supports more informed use of Integrated Curriculum and Financial Planning (ICFP), enabling Trusts to explore how changes to curriculum delivery or staffing deployment might improve both affordability and outcomes.

Importantly, the data reinforces that small changes in staffing levels can have a disproportionate impact on financial sustainability, highlighting why benchmarking should be treated as a core management discipline rather than an annual compliance exercise.

Reserves and cash positions

Another key insight from the UHY 2026 benchmarking data is the widening variation in reserves and cash positions, particularly between primaries and secondaries. While primary academies have generally strengthened cash balances during the year, secondary academies have seen continued deterioration, highlighting significantly different risk profiles across phases. Benchmarking reserves on a per‑pupil basis, rather than in absolute terms, provides a clearer picture of resilience. It allows trustees to:

assess whether reserve levels are proportionate to risk
challenge assumptions about 'healthy' balances
justify reserve policies confidently to regulators.

Given increasing scrutiny from the DfE around both low and high reserve levels, peer comparison provides essential assurance that reserve strategies are reasonable, defensible and aligned with sector norms.

How academy trust benchmarking supports key trust priorities

Responding to financial and regulatory pressures

Academy trusts operate in a high-accountability environment. The expectations of the Department for Education (DfE), Ofsted, trustees and the public mean trusts must be able to justify decisions with evidence. Benchmarking supports this by providing objective data that can underpin strategic choices. With constrained funding and rising cost pressures, particularly around staffing, energy and special educational needs, trusts must ensure that resources are directed where they have the greatest impact.

Benchmarking can highlight inefficiencies, identify areas of overspend, and demonstrate whether financial challenges are sector-wide or trust-specific.

Supporting better strategic decision making

One of the most valuable aspects of benchmarking is its ability to prompt informed conversations at senior leadership and board level. When trustees can see how their trust compares to peers, discussions shift from anecdote to evidence.

For example, benchmarking staffing ratios alongside pupil outcomes can help trusts assess whether current structures are sustainable and effective. Similarly, comparing central services costs across multi-academy trusts can inform decisions about growth, centralisation or investment in shared functions.

Importantly, benchmarking should not encourage a race to the bottom on costs. Instead, it should help answer strategic questions:

Are we investing enough in teaching and learning?
Does our cost base reflect our educational priorities?
Are outcomes commensurate with our levels of spend?

Driving school improvement

Benchmarking is often associated with finance, but its relevance to educational improvement is just as significant. Comparing attainment, progress, attendance or exclusion rates with similar schools can help Trusts identify both strengths to build on and areas requiring targeted support.

For trusts overseeing multiple academies, internal benchmarking can be particularly powerful. It enables trust leaders to spot patterns, share best practice and provide differentiated challenge and support across schools. Over time, this consistency of insight supports a more coherent and effective approach to improvement.

Strengthening governance and accountability

For trustees and governors, benchmarking provides assurance. It equips them to challenge constructively, ask better questions, and fulfil their responsibility for oversight. Data-led benchmarking reduces reliance on subjective judgement and helps boards focus on strategic risk rather than operational detail.

Used well, benchmarking also supports transparency. Being able to articulate how the trust compares to others - and what actions are being taken in response - builds confidence with stakeholders, including parents, staff and regulators.

How to make academy trust benchmarking work effectively

While benchmarking is a powerful tool, its impact depends on how it is used. Data should be reviewed regularly, interpreted carefully and considered alongside qualitative insight such as local context and school priorities. One-off comparisons have limited value; trends over time are far more instructive.

Most importantly, benchmarking should lead to action. The real benefit comes not from knowing where you sit in the rankings, but from using the insight to inform planning, allocate resources wisely, and improve outcomes for pupils.

Benchmarking is no longer optional

Taken together, the insights from the UHY Academy Benchmarking Report 2026 reinforce a clear message: benchmarking is no longer optional, nor is it something to be done once a year for assurance purposes.

In a sector facing rising costs, regulatory change, demographic shifts and increasing consolidation, benchmarking must be embedded into strategic planning, financial monitoring and governance conversations. Used well, it enables academy trusts to move from reactive decision‑making to proactive, evidence‑led leadership - ensuring resources are deployed efficiently and sustainably in support of high‑quality education.