DfE threatens to reclaim £110k loan unless school joins a multi-academy trust

The government has threatened to forcibly claim back a £110,000 loan issued to a single-academy trust unless it joins a MAT.

The threat comes as a school leaders’ union issues a warning over the “serious implications” of conditions attached to such emergency loans.

A financial notice to improve issued to Hinckley Academy and John Cleveland Sixth Form Centre in Leicester was published on Friday, its second since May 2016.

Under the warning, the trust was ordered to “take all actions it can” to rebroker its sole academy.

If not, the Education and Skills Funding Agency will apply a “qualifying floating charge” to claim back the deficit funding of £110,000 it lent the trust. This is essentially a charge that “hovers” over the trust’s assets, meaning the agency is first in line to claw its cash back in the case of insolvency.

https://schoolsweek.co.uk/dfe-threatens-to-reclaim-110k-loan-unless-school-joins-a-multi-academy-trust/
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