Academy trust pays out six figure golden handshake despite financial distress

Academy trust pays out six figure golden handshake despite financial distress

A Norfolk academy trust has admitted paying a former employee £122,000 in a severance deal, despite having “significant” financial challenges of its own.

The Right for Success Trust, which is responsible for 11 schools, admitted in its accounts that it had a “significant financial and operational challenge” and a “deterioration” of its financial position.

In spite of its precarious financial position, it was the only Trust to pay more than £100,000 in severance pay to a single former member of staff during 2017-18.

The £122,000 severance figure was initially detailed in the annual academy sector accounts published in July and, following a Freedom of Information by Schools Week, the identity of the trust was discovered.

This year the Government announced plans to put an end to six figure public sector settlement deals, capping pay outs at £95,000, although the Treasury has yet to confirm a date when the new rules will come into effect.

A spokesperson for Right for Success said it could not comment on individual cases, but insisted all payments were “subject to strict scrutiny [and] are fully compliant” with funding rules.

Academy trust pays out six figure golden handshake despite financial distress