How the Financial Health Score Works
Methodology behind MATpulse's composite 0-100 financial health score for schools.
What the score measures
The Financial Health Score is a composite metric from 0 to 100 that summarises a school's financial resilience. It is computed from four equally-weighted sub-scores, each on a 0-25 scale, derived from the school's latest financial return (AAR for academies, CFR for maintained schools). A score of 100 means all four indicators are in the healthiest range. A score below 40 signals financial strain across multiple dimensions.
The four components
Reserves score (0-25): measures revenue reserves as a percentage of income. Schools with reserves above 10% of income score highest. Schools with negative reserves score zero. The DfE considers 5% a minimum prudent level. Staff costs score (0-25): measures total staff costs as a percentage of income. Schools below 75% score highest. The DfE flags schools above 78% as at risk. The scoring is inverted because lower staff cost ratios indicate more financial flexibility. Pupil roll score (0-25): measures whether the school is at or near capacity. Schools operating at 85-100% capacity score highest. Significantly under-filled schools receive lower scores because per-pupil funding is their primary income source, and empty places mean lost revenue. Income diversity score (0-25): measures the proportion of income from non-grant sources. Schools with more diversified income (lettings, catering, donations, self-generated revenue) score higher because they are less vulnerable to funding formula changes.
Thresholds and RAG ratings
Scores are grouped into three bands for display purposes. Green (65-100): the school is financially healthy across most dimensions. Amber (40-64): the school has some financial pressure — one or two components are weak. Red (0-39): the school faces significant financial strain across multiple dimensions. These thresholds are calibrated against the distribution of scores across all schools with sufficient data, not arbitrary cut-offs.
Data requirements
The score requires at least one year of financial data (income, expenditure, reserves, staff costs) and a pupil count. Schools without financial returns — typically new free schools in their first year, or schools that have recently closed — do not receive a score. Approximately 21,000 of the 27,000 open schools have sufficient data for a health score.
Limitations
The score is a screening tool, not a diagnosis. A low score does not necessarily mean a school is in financial crisis — a school investing heavily in a building project may temporarily show depleted reserves. Conversely, a high score does not guarantee good financial management — a school could be hoarding reserves while under-investing in teaching. The score should always be read alongside the detailed financial data on the school's profile. For academies, financial health is formally assessed at trust level by the ESFA, not at individual school level. MATpulse computes school-level scores for all schools regardless, but users should be aware that academy reserves are pooled across the trust.
How trusts are scored
Trust-level health scores on MATpulse are the simple average of the individual school scores for all member schools with sufficient data. This gives a quick read on the trust's overall financial position but can mask variation between schools — a trust with one very healthy and one very stressed school would show an average score. The trust profile page shows the full distribution of school-level indicators.