This note is for anyone who sits on school Finance Committees or holds the role of Finance or Data Link Governor/Trustee and has been asked to look more closely at school finances.
Other governors don’t need to use the benchmarking website themselves, but this explains how to use it, and how it helps us ask the right questions and support good decision-making.
What is financial benchmarking?
Financial benchmarking simply means:
Comparing our school’s spending with that of similar schools or trusts.
It helps us see:
- Where we spend more
- Where we spend less
- Where we might need to ask questions
It is not about blame.
It is about:
- Understanding our finances
- Supporting leaders
- Making sure money is used wisely for pupils
Where does the data come from?
The figures come from:
- Schools’ official financial returns
- The workforce census
So, this is real data, not guesswork.
There is also another service (FFT Education Datalab) which can help compare:
- Staffing
- Income per pupil
- Workforce patterns
What is our role as governors?
Our role is strategic, not technical.
That means:
- We don’t manage the budget day-to-day
- We don’t audit accounts
- We don’t redo the finance team’s work
Instead, we use benchmarking to:
- Get an overview
- Ask sensible questions
- Check that things make sense
- Support good financial planning
Aim to spend about 30 minutes on the benchmarking site, not hours.
What does the benchmarking site help us with?
It gives us:
- A picture of our finances
- A starting point for questions
- Confidence to challenge constructively
- Reassurance that what we think is happening really is happening
Example:
“We thought our energy bills were high; the data shows they are higher than those of similar schools. That tells us this is something to explore.”
Comparing with other schools or trusts
We compare ourselves with similar schools or trusts, not with everyone.
We look at:
- Size
- Type
- Pupil numbers
- Context
This helps make the comparison fair.
Important: the timing of the data
The data may be from a previous year (for example, 2022/23).
Maintained schools and academies report at different times, so:
- Dates may not match exactly
- Trends are more important than perfection
We must use the graphs as a conversation starter, not as a final judgment.
How to view the graphs
Always try to view graphs as:
£ per pupil
This makes comparisons fair when schools are of different sizes.
Percentage of income
This shows how much of the budget is spent on each area.
Avoid just using “actual totals” as this can be misleading.
Look out for outliers
An outlier means:
- We are near the top or bottom of a chart
This is useful because it highlights:
- Strengths
- Risks
- Areas to question
Even if we are in the middle, there may still be room to improve.
Example: Premises and utilities
When looking at spending on:
- Premises staff
- Repairs
- Utilities (gas, electric, water)
We might notice we spend more than similar schools.
Questions to ask could be:
- Why is our spend higher/lower than others?
- Is this unavoidable (old building, larger site)?
- Are there efficiency savings we could make?
- Could we invest in energy-saving measures?
- Why do similar schools spend less on catering or cleaning?
Example:
“We spend more on premises staff, but less on contractors. Is that because our site team does more work in-house?”
Prepare your questions
You don’t need to ask everything.
Choose 2 or 3 key areas where:
- We differ most from others
- The cost is high
- There may be future risk
Good questions are:
- Curious, not critical
- Open, not accusatory
- Focused on learning
Talking with the SBM or CFO
If possible, arrange a short discussion before the meeting with the:
- School Business Manager (SBM)
- Chief Financial Officer (CFO)
This helps:
- Clarify the data
- Avoid surprises in meetings
- Prepare a short report for governors
Make notes of:
- What you asked
- What you were told
Bringing it to the meeting
Ask for financial benchmarking to be a short agenda item.
You can:
- Share 2 or 3 key findings
- Show a few graphs
- Explain what questions were asked
- Summarise the answers
If you didn’t meet the SBM/CFO beforehand:
- Invite them to the meeting
- Send questions in advance so they can prepare
Tips for getting this right
- Keep it simple
Don’t drown in data. Focus on big picture patterns.
- Ask “why”, not “who”
It’s about understanding, not blaming.
- Use comparisons wisely
Only compare with similar schools or trusts.
- Focus on pupils
Always link finance back to:
“How does this help children and young people?”
- Be confident
You don’t need to be a finance expert to ask good questions.
- Share learning with the board
Your role helps everyone understand the school’s financial health.
Final thought
Financial benchmarking is not about catching people out.
It is about:
- Good governance
- Transparency
- Wise use of public money
- Supporting leaders to plan well
- Protecting the school’s future
Used well, it strengthens trust, improves decisions, and helps ensure every pound works for our pupils.