The number of academies operating with a deficit has increased to 47% in 2023, up from one in five (19%) in 2019 according to the annual Kreston UK Academies Benchmark Report.

The rise in the level of deficits was mainly due to the surge in energy bills which rose by 49% in 2023, equivalent to a 16% increase per student.

Primary Single Academy Trusts are finding things toughest, and they continue to make an average in-year deficit.

The uncertainty around costs going into 2024 is preventing academies from making concrete plans for the year.