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Ricky Barton
Head of Finance at Lime Trust

 

Although the total amount of funding allocated to English schools for 5–16-year-old pupils has grown since 2010-11, Multi-Academy Trusts (MATs) face constant budget pressures. In an Academies Benchmark Report, released by Keeston Reeves in early 2024, 47% of MATs now have an in-year revenue deficit, up 26% from the previous year.

 

These figures highlight the real challenge finance teams encounter – ensuring academies provide the highest quality teaching and a safe and engaging environment within the constraints of a stringent budget.

The “Dark Arts”

 

At Lime Trust, one of the ways we have managed our budget is through reviewing our supply agency spend. We knew we were spending far too much on supply staff, especially, with our SEND schools we have seen supply has historically been heavily relied on increasing our risk. It wasn’t until we reviewed the figures that we realised the full extent of what agencies were charging us.

 

Reviewing and analysing agency spend was like the dark arts. We used 15-20 different supply agencies and when we analysed the mark-ups it was astonishing. We were being charged mark-ups of between 22-45% for the same service. Yet the supply staff were not always being paid in line with what we were paying. We were also paying an astronomical amount in temp to perm fees, as we navigated the recruitment crisis in education. This is when we decided to partner with Affinity Workforce Solutions through the Crown Commercial Services (CCS) Managed Service Framework.

Budgeting Effectively

 

Affinity Workforce Solutions take full responsibility for managing the recruitment of our temporary staff. The agency sources candidates, manages a supply chain of recruitment agencies and engages with the supply workers. One of the benefits of this partnership is that we have clarity around charges and pay rates. We know what we will be charged and what the supply workers will be paid. This has made an incredible difference, as we can budget more effectively. The supply staff are also paid more, even though we are charged less, so better quality candidates remain working on supply across our academies.

 

There is also the added benefit of not paying temp-to-perm fees. This alone has saved us thousands. If the supply staff are of good quality and there is a need to recruit them permanently, our CEO will encourage headteachers to recruit them via the temp-to-perm process. Part of this has meant we have had to change our internal processes and reviewed our requirements. Previously, we required staff to have a GCSE pass in English and Maths, but we’ve had great supply staff who didn’t fully meet this criteria. The end goal is to put the best people in front of the pupils, so we adapted our policy and are able support the staff to be able to meet other criteria. If they are good at their job, they like what they do and share our Trust values, then there’s minimal risk in offering a permanent contract and supporting their development.

Streamlining

 

 

Implementing the managed service framework also means that from a school’s point of view, they have one point of contact, making it a more efficient and quick process.

 

Dealing with 15-20 different agencies, meant processing 15-20 different invoices and making 15-20 different payments; sometimes we would use a ream of paper just to print supply invoices!

 

Consolidating this into one process has made huge differences to the finance team, we’ve saved on time, printing and payment costs.

Hearts & Minds

 

Although, as a Trust, we could see the benefits of moving to a managed service contract, we had to win the hearts and minds of our Academy staff. Fundamentally, their main priority is not the budget; their focus, rightly, is on the pupils. We had to explain how this partnership would positively impact them and why it would be worth changing from their current suppliers, that some had built relationships with over a period of time.

 

We emphasised how the quality of supply staff would improve and ultimately provide pupils with a higher level of care and education. Explaining the partnership in this way meant our Headteachers came on the journey with us and fully supported what we were trying to achieve by operating on the framework.

Utilising Your Budget

 

Since the launch of the partnership, we’ve saved hundreds of thousands of pounds allowing us to utilise this budget elsewhere. We’ve had some large capital issues with the buildings that we have had to fix. We’ve been able to react quickly to solve these issues.

 

Some Trusts do not have the reserves to be able to react to emergencies, but with the money we have saved, we have been able to protect our reserves position and be more reactive to spending when required.

 

We’ve also been able to invest in outside spaces, which has positively improved the environment for the pupils. I believe, if we invest in the environment and make an engaging and enriched space that our pupils are proud of, then engagement in learning will improve.

Future Planning

 

As we’ve seen during the past few years, many Multi-Academy Trusts have experienced transformational growth. Lime Trust is no different. We have doubled in size since 2018 and now provide education in another geographical region. During this time, recruiting and managing even more agencies was challenging. We are in the processes of opening a new school in 2027, as well as discussing other opportunities for growth.

 

As we are in partnership with Affinity Workforce, I have confidence that we will be able to call on extra staff if we need them and reduce some of the staffing challenges we experienced previously. This partnership is collaborative, our planning is matched by Affinity’s planning which gives me peace of mind.

“Weathered the Storm”

 

If my experience with supply agencies sounds familiar, then I would urge you to review the costs and mark-ups – it was terrifying! I would also suggest looking at their policies and procedures and not allowing the need to recruit to reduce your expectations of your supplier. We now do checks to see if the agency is financially stable and they have all the relevant safeguarding documentation in place. Sustainability is also important to us, so we run checks on the Directors and ensure we work with ethical suppliers.

 

As everyone who works in the education sector will know, the last few years have been the perfect storm. We now feel we have weathered that and have come out the other side. The improvements to the quality of supply staff, the consolidation of processes and the cost savings we’ve made have made such an enormous impact.

 

Learn more about Lime Trust