EXCLUSIVE: £200k DfE payment to Deloitte to wind up WCAT is one-off, FoI reveals

Janet Downs's picture

£200k was paid by the Department for Education to Deloitte to wind up the notorious Wakefield City Academies Trust, BBC’s Inside Out for Yorkshire and Lincolnshire revealed on 23 September.

This payment is a one-off, the DfE says.  Following my Freedom of Information request, the department says WCAT ‘is the only case we have identified from our records where a company has been engaged to assist with the liquidation of a trust’s assets upon closure’.

It’s not known why the DfE employed an outside firm to help with winding-up WCAT when no such firm has been used before by the department when an academy trust closes. 

There are legal and administrative costs to be paid when academy trusts dissolve just as there were when the trusts were set up in the first place.  The costs of setting-up and closing-down trusts will total millions of pounds.   These are the hidden costs of academization.    

This expenditure will increase as more academy trusts close and academies are transferred.  Money spent on these structural changes would have been better spent on education.

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