Guidance

Information for academy trusts about academy transfer

Updated 16 December 2025

Applies to England

This guidance provides information for academy trusts involved in an academy transfer or trust closure. It does not constitute legal advice. Trusts should seek independent legal advice where needed.

Academy transfer

An academy transfer is when an academy moves from its current trust, known as the ‘outgoing trust’, to another trust, known as the the ‘incoming trust’.

Trusts need to apply to regions group to transfer an academy from one trust to another.

A transfer can only happen with the agreement of the regions group acting on behalf of the Secretary of State for Education. 

Academy transfers are rare. In the financial year 2024 to 2025, only 280 of 11,411 academies moved trust. Of these, only 43 transfers were due to intervention.

Academy transfers and funding 2024 to 2025 has more information.

Reasons for academy transfer

Initiated by the outgoing trust

The transfer is initiated by the outgoing trust. Most academies that transfer between trusts do so based on a decision by the outgoing trust. Individual academies that are part of a MAT can only do this with the agreement of the MAT.

They may do this to ensure stronger school-to-school support or economies of scale, for example a single academy trust (SAT) joining a multi-academy trust (MAT). It might also be for strategic reasons, for example academies moving to MATs that are closer to each other geographically.

Intervention

A small number of academies transfer each year to address underperformance as set out in support and intervention in schools.

There is a presumption that academies found by Ofsted to require special measures will receive structural intervention. This will mean that by default, academies will be transferred to a new trust. The Secretary of State’s power to transfer academies is a discretionary power, not a statutory obligation. There is a presumption in favour of transferring academies in ‘special measures’ but this presumption is rebuttable by exception.

For academies requiring significant improvement, regions group will decide whether to transfer the academy to a new trust on a case-by-case basis, considering the specific context and circumstances of the academy.

Trust closure

In the rare event that a trust closes, academies in the closing trust must be transferred to a new trust as part of the closure. Academies within a closing trust must be transferred even if they themselves are not otherwise eligible for intervention.

Transfer process

Applications received from trusts are assessed by regions group. Sponsor trusts needed for academies requiring structural intervention are identified by regions group.

Academy transfers are decided by  regions group. Before they make a decision, regions group may go to their advisory board  for advice. 

When regions group approves a transfer, the Department for Education (DfE) aims to complete the transfer process within 6 months for straightforward cases.

More complex cases may take longer. Regions group delivery officers in DfE are responsible for managing the process and supporting trusts to meet their obligations. Trusts should expect to work closely and openly with both the department and each other until the process is completed.

Regions group approval

The commissioning high-quality trusts framework is used for approving applications for academy trust transfer.

For the majority of transfers initiated by the outgoing trust, regions group  approval will typically be straightforward. For example where:

• a single academy trust might choose to join an existing or new multi-academy trust
• geographically the school, or group of schools, would gain improved access to shared resources, teaching communities and professional development opportunities, following the framework on the ‘commissioning high-quality trusts’ page

In intervention cases, regions group will identify a high-quality academy trust to sponsor the academy following the guidance in ‘commissioning high quality trusts’.

The proposed transfer and the name of the incoming trust will be published in the advisory board draft agenda. This agenda enables members of the public, including parents and carers, to see the projects to be decided and to make representations before decision.

Following regions group approval of the incoming trust, the incoming trust is expected to engage stakeholders. Regions group delivery officers can advise on how to do this.

Trust agreement letters

Both the outgoing and incoming trusts will be sent their respective trust agreements by the DfE delivery officer. Sample agreement letters are available at annex A and B.

The agreements outline what trusts are expected to do throughout the academy transfer process.

After signing and returning their trust agreements, trusts are then responsible for working together to manage the commercial and legal implications of the transfer, to a timeline agreed with the department.

Final approval to transfer will be given by the department once these elements have been finalised. Trusts will sign various documents to complete the transfer.

School improvement support

If the incoming trust is going to provide school improvement support to the transferring academy before the transfer, they should prepare an agreement. This means that both parties will be clear about:

• the expectations of the scope of the school improvement work
• how any payments will be made

Use the ‘recommended service level agreement’ at annex C. You can adapt this to meet the particular needs of the transfer.

Due diligence

Due diligence should be undertaken by the incoming trust to understand the academy’s position.

The outgoing trust must cooperate and provide all the information requested.

The extent of due diligence is determined by the incoming trust. This may vary on a case- by-case basis, but it will usually include assessment of:

• education provision
• pupil population
• finances
• staffing
• governance
• the school buildings and estate

The incoming trust must fully assure itself that sufficient due diligence has been carried out and confirm to DfE that:

• due diligence has been completed
• the trust is aware of any ongoing issues ahead of transfer

Best practice guidance on undertaking due diligence is available. For intervention cases the expectation is that due diligence should take around one month.

Grant funding for transfers is by exception and is only usually provided in intervention cases. In these cases, DfE will agree an appropriate level of funding for the incoming trust to facilitate an efficient transfer. Find out more about indicative grant funding levels in the technical section of Academy transfers and funding, Financial year 2024 to 2025.

Once all funding has been agreed, regions group will send a negotiating offer closure letter to the incoming trust. The incoming trust must then sign and return this letter. The letter should summarise the funding the trust will receive and agree a transfer date.

The letter will be sent in addition to the individual grant offers which set out the conditions of each grant.not

Trusts should be aware of the financial liabilities involved in the academy transfer process. The information for trusts on finances and liabilities sets out the risks in more detail. Trusts should use this guidance to ensure they understand the potential impact on their transfer and the guidelines in which they must operate.

Completing the transfer

Examples of activities that the incoming trust will need to do before completing the transfer include:

• engaging with stakeholders
• producing legal documents

Stakeholder engagement

This is an opportunity for:

• the incoming and outgoing trusts to explain more about the transfer, listen to questions and address any issues
• the incoming trust to meet with parents, teachers and the local community and set out its plans for the school including how the plans will support the school to improve, if relevant

Working with solicitors

Trusts must prepare all required legal documents for review and clearance by regions group. Both the outgoing and incoming trusts are responsible for agreeing and signing these documents within the deadlines set by the delivery officer. Timely completion is essential for the transfer to proceed as planned.

Trusts may choose to engage solicitors to draft the documents on their behalf. If they do this, trusts should ensure that they:

• understand the process and timelines and relay this to their solicitors
• provide regular progress updates to their delivery officer 
• ask for clarification promptly if they have any questions about requirements or deadlines

Documents needed before transfer

Funding agreement

The funding agreement provides the framework for an academy or free school to operate in.

In the case of academy transfers, our preferred route for the legal transfer is novation and variation to move from the existing funding agreement documents to the new model versions.

The deed of novation and variation enable the academy’s existing funding agreement to transfer from the outgoing to incoming trust.

All academies that transfer must use the latest version of the model funding agreement. Where the incoming trust has a master funding agreement earlier than the latest model version, the delivery officer will ask the trust to adopt the latest model as part of the transfer process.

The latest model master and supplemental funding agreement documents is available on the convert to academy: documents for schools page.

The deed of novation and variation will need to be drafted by the incoming trust and agreed with the outgoing trust and the department.

Both trusts and the department will need to sign this document to finalise the transfer. Draft documents should be sent to the delivery officer to clear before being signed.

Commercial transfer agreement

The commercial transfer agreement is used to transfer assets and liabilities (including contracts and staff) from one academy trust to another.

It needs to be agreed by both the incoming and outgoing trusts. A final draft of the agreement should be shared with the delivery officer before being signed by both trusts.

Academy trust legal representatives should use the commercial transfer agreement models in academy transfers cases.

Transfer of Undertakings (Protection of Employment) Regulations 2006

Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) allows staff to automatically transfer their terms and conditions from the outgoing to incoming trust.

The incoming trust will need to work with the outgoing trust on the TUPE consultation.

Trusts will need to confirm to the department that the TUPE consultation has taken place and staff have been TUPE’d across to the new trust.

Private finance initiative (PFI) contract

If there is a PFI contract in place, this will need to be transferred to the incoming trust. These should be novated to the new trust on the existing terms.

Land transfer

Before an academy can transfer, the outgoing trust will need to seek the Secretary of State’s consent to dispose of the land or lease to allow it to move to the new trust.

The outgoing trust will need to complete and submit  form M - academy land transfers. This should be done 2 months before the date of transfer.

Payment information: bank details

DfE needs confirmation of the incoming trust’s bank details to make sure that funding is paid to the incoming trust on time, accurately and securely.

Use provide information about your banking and payments to DfE to do this.

If the department does not receive the completed form before the deadline set by the delivery officer, there may be a delay to the incoming trust receiving funding.

Insurance

The trusts must confirm that the benefit of any insurance policies has been passed to the incoming trust. This includes confirming that the insurer was properly notified of any risk exposure.

If not already members, trusts may want to consider the department’s risk protection arrangement (RPA) instead of commercial insurance.

General annual grant (GAG) payment

Trusts need to be aware that in the planned month of the trust transfer, they will receive the GAG payment on the sixth working day of the month unless other arrangements have been made.