Academy trusts with large levels of reserves will not be told by government they have to spend the cash, nor face having it clawed back, new government guidance sets out.
However, officials warned those sitting on reserves worth a fifth or more of their income will be asked by officials to show they have “sufficient plans” in place for the cash to “meet pupils’ needs”.
New government advice also suggested trusts with spare reserves could look to invest the cash to bring in extra income.
The Department for Education has published a “good practice guide” on academy trust reserves today.
