£750k Saved: How One North East Multi-Academy School Trust Cut Supply Staffing Costs by 30%

The Challenge Schools Face 

You know only too well, schools across the country are grappling with mounting pressures: tighter budgets, rising operational costs, and the urgent need to protect teacher wellbeing to keep them happy in their jobs, while maintaining high standards of education. These challenges mean that every pound spent must deliver maximum value, yet one of the biggest costs, outside of permanent staffing is vital supply staffing, an area costing schools and multi-academy trusts millions each year. 

Above permanent staffing and premises costs such as utilities, one of the largest costs for all school budgets is supply staffing, with schools requiring cover for a number of reasons including mental health cover and burnout within the teaching population, as a result of rising school costs and the gap in teacher recruitment – which many schools are having to cover with supply staff. 

It is not unreasonable for a multi-academy trust to spend £1 million or more each year on agency supply staff, with many reaching into the multi-millions. With traditional commercial recruitment agencies often charging margins of 45%, schools are paying far more than necessary, and that is a lot of profit for supply agencies, that could be better spent on education. 

The SMS Solution: Helping One Large Multi-Academy Trust Achieve 30% Savings On Supply Staff Costs 

By partnering with Schools Mutual Services (SMS), one large multi-academy trust in the North East of England achieved a 30% saving on supply spend. This equated to a £750,000 saving in a single year – money that was then invested by the trust into frontline teaching and education initiatives. 

This real example demonstrates the tangible impact SMS can deliver: 

• 30% savings compared to traditional agency models 

• £750k staying in education, and not the pockets of shareholders 

• Funds redirected by the trust to frontline teaching initiatives, teacher wellbeing and support, school and classroom equipment, pupil support, SEND, meaning long-term improvement of the sector and pupil achievement. 

The National Picture: £300m Potential Savings 

Across the UK, schools collectively spend around £1.5 billion on supply staff each year. If all schools and trusts were to switch to Schools Mutual Services, achieving a reduction in operating margins of circa 20% when compared to commercial supply agencies agency, the sector could release £300 million nationally – an unbelievable amount that is so desperately needed 

Even at this conservative 20% saving, the impact is enormous: 

• A trust spending £1m annually could save £200,000. 

• Nationally, that’s £300m freed up to support teaching, wellbeing, and resources. 

Why This Matters 

While the financial savings are significant, the advantages of working with Schools Mutual Services extend far beyond school budgets. Schools and multi-academy trusts benefit from a model that is designed to be ethical, sustainable, and supportive of long-term improvement. 

• Budget relief: In the context of Budget 2025, these savings provide schools with breathing space to manage rising costs, with savings schools achieve through SMS can be redirected into frontline priorities. 

• Fair Treatment of Staff
  SMS ensures supply teachers and support staff are paid fairly and treated with respect. This builds stronger relationships, improves retention, and enhances the quality of teaching delivered in classrooms. 

• Transparency and Trust
  Unlike traditional agencies, SMS operates with clear, transparent margins. Schools know exactly what they are spending and where their money is going, creating confidence in the system and enabling better planning. 

• Consistency for Pupils
  By working with schools to retain quality talent, providing low-cost quality, fully vetted supply staff to cover gaps, and supporting staff wellbeing, SMS helps schools provide greater continuity for pupils, ensuring learning is less disrupted and outcomes are improved.  

• Alignment with Sector Reform
  SMS is a mutual, not-for-profit organisation and part of a wider movement towards ethical staffing solutions, supporting schools in meeting Department for Education guidance and union calls for fairer, more sustainable practices. 

Schools Mutual Services is proving that supply staffing doesn’t have to drain budgets. With 30% savings already achieved and £300m potential nationally, SMS offers schools a smarter, fairer, and more sustainable way forward. 

Schools Mutual Services (SMS) is a not-for-profit supply staffing agency, owned and managed by schools. It was created to deliver ethical, transparent, and cost-effective staffing solutions across the education sector. Unlike commercial agencies, SMS keeps spend in the education system, helping schools protect their budgets while ensuring supply educators receive fair pay, professional development, and alignment to national pay scales. 

With regional hubs covering the North East, East Midlands, and South East, SMS works alongside executive leaders in schools and academies across Newcastle, Durham, Gateshead, Sunderland, Northumberland, South Shields, Nottinghamshire, Derbyshire, Leicester, Oxfordshire, Swindon, and Berkshire. 

Each hub is embedded within its local education community, partnering with schools, academies, multi-academy trusts, and teaching alliances such as OTSA. This ensures tailored support across both primary and secondary education, whether for day-to-day supply teaching or long-term placements. 

From large multi-academy trusts to community primaries and special schools, SMS is helping educational establishments navigate financial pressures with a smarter, more sustainable solution for supply staffing – one that always puts pupil outcomes first 

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If you have any supply staffing requirements or would like to discuss any information in this article further, you can contact us here ➡️CONTACT FORM 

North East Hub 

Portland House, Newcastle, NE1 8AL
📞 0191 933 8300
✉️ info@schoolsmutualservices.co.uk 

South East Hub 

Podium Sandford Gate, Littlemore, Oxford OX4 6LB
📞 01865 597 771
✉️ oxford@schoolsmutualservices.co.uk 

East Midlands Hub 

16 Commerce Square, Nottingham NG1 1HS
📞 0115 646 6460 | 07460 430653
✉️ nottingham@schoolsmutualservices.co.uk