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MAT finance under pressure: how to navigate budget cuts without compromising education
In the face of rising costs and shrinking support, this blog explores how Multi-Academy Trusts can tackle 2025’s financial challenges without sacrificing quality or outcomes.
Budget cuts again? You’re not alone
If you have been working in MAT finance for even a year, you have likely had the conversation. The one where income stays flat, costs quietly rise, and tough decisions begin stacking up.
Whether it is energy prices, staff pay pressures, or yet another funding curveball, trusts across the UK are being asked to stretch every resource further than ever.
But pressure does not have to mean compromise. The way your trust responds can be the difference between scrambling for survival and stepping into a more strategic future. That starts with better planning and the right tools.
What is really going on?
The outlook for 2025 is already challenging.
Funding per pupil is not keeping up with inflation. Recruitment costs are rising. Support services are stretched thin. Add to this the government’s expectation that every school will be part of a trust by 2030, and the financial landscape becomes even more complex.
Now let’s talk about National Insurance.
The government has confirmed that from April 2025, early years settings will receive a grant to offset the cost of losing employer NIC relief for under-21s and apprentices under 25. But Multi-Academy Trusts are not eligible for this grant.
This means MATs will now be liable for the full employer NICs rate of up to 13.8 percent for early years staff who were previously exempt. For trusts with nurseries or early years provision, this is not a small adjustment. It could mean tens of thousands of pounds in additional costs that were not budgeted for.
This policy shift, though technical on paper, could have significant practical impact. This change may force trusts to delay hiring plans, cut back support roles, or cancel development initiatives. That is not just a financial issue. It is a wellbeing issue. A curriculum issue. An outcomes issue.
Cutting costs without cutting corners
When money gets tight, the temptation is to make fast cuts and hope for the best. But quick fixes can create long-term issues. Cuts made in haste often lead to deeper problems later on, from staff burnout to compromised learning.
The more strategic response is to plan smarter. Use the full capacity of the trust. Make every pound do more by taking a joined-up approach to planning and decision-making.
That starts with visibility. Without a trust-wide view of budget, staffing, and outcomes, leaders are working in the dark. But with clarity across the system, better decisions become possible.
What strategic budgeting looks like in action
Imagine a trust facing the new NICs cost. The leadership team needs to respond but wants to protect pupil support.
They model three different approaches using one platform.
- One scenario maintains staffing levels and absorbs the cost.
- Another redistributes staff between settings.
- A third makes small savings in non-core areas like IT or catering.
Each option is tested, forecasted, and discussed. No one is guessing. Every decision is backed by data. The board understands the trade-offs and the likely outcomes.
This is not hypothetical. MATs using tools like Anago are already planning this way.
Planning differently to protect what matters
Across the UK, trusts are rethinking how they plan.
Some are linking staffing plans directly to rolling budget forecasts, so hiring decisions are more flexible. Others are pooling procurement to reduce duplication and cost. Many are building collaborative planning processes that bring finance and education leaders together.
Some trusts are protecting SEND and pastoral services by finding modest savings elsewhere. Others are using live forecasting to spot risks early and plan accordingly.
In each case, planning is not just about what to cut. It is about where to invest. Where to protect. And where to adapt.
The Anago approach: turning pressure into clarity
Anago exists to help MATs plan with confidence, even in difficult times.
Our software gives trusts:
- The ability to plan and test scenarios before making decisions
- Real-time insights across budgets, staffing, and educational outcomes
- Clear, collaborative tools for finance teams and school leaders
- Less time spent on admin and more space for strategic thinking
Anago has already supported more than 30 percent of MATs in the Netherlands to improve planning and accountability. Now, we are working with UK trusts to do the same.
When the stakes are high, Anago gives you the clarity and control to move forward with purpose.
Final thought
You cannot change government policy. But you can decide how your trust responds to it.
The NICs changes for 2025 may present another financial hurdle. But with the right mindset, leadership, and systems in place, it is possible to respond proactively and protect what matters most.
This is not about cutting more. It is about planning better.
Want to learn more?
If your trust is feeling the pressure and ready to take control of planning, we are here to help. We would love to hear how your trust is adapting to the new NICs policy.
Curious what Anago can do for you?
MAT Budgeting in 2025: What changes are coming and how to prepare?
Budgeting is no longer just a back-office task. For MATs, it’s becoming the backbone of strategic leadership. With pressures building across the board, many trusts are feeling the strain.
In this blog, we explore how the landscape is changing in 2025 and what MATs can do to stay one step ahead.
Why MATs must move from reactive to proactive budgeting (before it’s too late)
For many MATs, budgeting still means reacting to problems as they arise. But with rising pressure and the 2030 deadline on the horizon, trusts need more than quick fixes. This blog explores why now is the time to shift from reactive to proactive planning—and how to make it happen.
This way you are always prepared for changes in education financing
You've probably experienced it before: government regulations are changing again, and you have to move quickly to get your budget in order. Or you are faced with a new subsidy scheme and wonder how you can incorporate this into your financial planning without errors. The financial landscape in education can be quite challenging, with all the fluctuations in funding and changes in legislation and regulations.
But there's good news: you no longer have to wade through this alone. Current government data can help you maintain an overview, as long as you have access to the right tools and software that process this data for you in real time. How does that work and why is it so important? Let's delve into that in more detail.