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2025-08-31-accounts

AP Challenge Trust Annual Report and Unaudited Financial Statements

31 August 2025 1170872 (England and Wales)

Legal and administrative information

Trustees N Basden T Corbett S Abell S Griffith J Hepburn Principal address Galena House 8-30 Galena Road London W6 0LT Charity registration number 1170872 (England and Wales) Bankers Metro Bank One Southampton Row London WC1B 5HA

AP Challenge Trust

Contents

Reports
Trustees’ report 4
Financial Statements
Statement of financial activities 9
Balance sheet 10
Principal accounting policies 11
Notes to the financial statements 164

AP Challenge Trust

Trustees’ report 31 August 2025

The Trustees of the Trust present their statutory report together with the accounts of AP Challenge Trust (‘the Trust’) for the year ended 31 August 2025.

The accounts have been prepared in accordance with the accounting policies set out on pages 10 to 12 of the attached accounts and comply with the Trust’s Constitution, applicable laws, accounting standards (United Kingdom Generally Accepted Accounting Practice) and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

Objectives and activities

The Trust was established as a Charitable Incorporated Organisation (CIO) on 21 December 2016. The Trust’s objects are the advancement of education for the public benefit. The policies adopted in furtherance of these objects are to provide grants, services, advocacy/advice/information and to act as a resource body to AP members. There has been no change in these objectives during the year.

The Board of Trustees have paid due regard to guidance on public benefit issued by the Charity Commission in deciding what activities the Trust should undertake.

The Trust is a Charitable Trust with the purposes of spreading best practice within the Alternative Provision (AP) school network, building a strong AP community, with high standards and promoting the successes of strong AP schools for students who have been excluded or are at risk of exclusion from mainstream education.

The term Alternate Provision is used widely in the education sector. AP settings vary widely across the country in what they provide for their students. A report in 2020 revealed that there were 13 Local Authorities where no children in AP had passed their English and maths GCSE in the past three years. There were 3 Local Authorities where not a single teacher in AP was qualified. There is also a huge disparity between the north and south of the country, with 1 in 50 pupils in the North East achieving a basic pass in maths and English, compared to 1 in 12 in outer London[1] .

Currently AP Challenge Trust works mainly with AP ‘Free Schools’, ie schools formed under the Free School programme during the last ten years, focusing on students sent by their local commissioner if they are excluded or at risk of exclusion. More recently, students are also sent to these AP Schools or Academies if they have learning needs which might be more cheaply met in an AP, rather than a Special School. The majority of member schools of AP Challenge Trust have been viewed as Good or Outstanding AP by Ofsted; most under the framework introduced in 2019. The typical AP model in the network, is a small-school model based on high standards, and individual support. The school environment is calm, and the curriculum varied. The network works to gather and disseminate best practice; lobby policymakers; and raise the profile of the AP sector. The Trust’s aim is to maximise its limited resources by supporting the AP sector to help itself to share resources and knowledge, thus ensuring that excluded young people in the country achieve better educational outcomes.

1 Centre for Social Justice, May 2020. Warming the Cold Spots of Alternative Provision

AP Challenge Trust 4

Trustees’ report 31 August 2025

National statistics show us that children excluded from mainstream schools have shockingly poor outcomes. APCT is trying to improve those outcomes.

Focused on the Attainment Gap

3.7% of pupils leaving Alternative Provision (AP) achieve Grade 4 or above in both English and Mathematics GCSEs, compared with 65.8% of pupils nationally. Five years after leaving school, 67.6% of former AP pupils (wide definition of AP) are not known to be in sustained education, employment or training, compared with around one in five young people nationally.

Attendance remains a major challenge. Whilst overall absence in mainstream schools has reduced since the pandemic, state-funded Alternative Provision (wide definition of AP) recorded an absence rate of 42.9% in 2024/25, meaning pupils attended for barely over half of available school sessions.

Changes to the sector – complex needs

The majority of pupils in AP have identified SEND, and the fastest-growing group of placements are those linked to Education, Health and Care Plans (EHCPs). Parliamentary data shows that placements in non-state-funded AP linked to EHCPs have increased by 164% since 2017/18, with over 40,000 such placements recorded in 2024/25.

These help demonstrate that AP is increasingly serving children with complex SEND profiles rather than solely those excluded for behavioural reasons.

Societal costs

Children with SEND are significantly overrepresented within the youth justice system. Research consistently identifies high levels of speech, language and communication needs (SLCN) amongst young offenders, with communication difficulties often acting as a barrier to education, rehabilitation and successful engagement with services.

The economic argument for early intervention is equally compelling. The broader social cost of young people becoming disconnected from education, employment and training is substantial. Recent analysis estimates that almost one million young people are currently not in education, employment or training (NEET), costing the UK economy approximately £125 billion annually through lost productivity, reduced tax revenues and increased public service demand.

These figures demonstrate why high-quality, therapeutic and academically ambitious Alternative Provision is so important. Effective AP should not simply be viewed as an alternative destination following exclusion, but as a specialist intervention capable of addressing unmet SEND needs, improving attendance, reducing the risk of involvement in youth justice services and supporting successful transitions into further education, employment and adulthood.

AP Challenge Trust 5

Trustees’ report 31 August 2025

Historically there has been just two options for an excluded student: to be sent to the local Pupil Referral Unit (PRU), or to be part of a managed move to another secondary school. The personal and societal cost of children’s needs not being met at school is reflected in statistics on our prison population. A Ministry of Justice report[2] states that 63% of prisoners had been temporarily excluded while at school, and 42% were permanently excluded. There is also a high prevalence of Special Educational Needs (SEN) among young offenders – of the young people sentenced to less than 12 months in custody in 2014 almost half were recorded as having SEN without a statement and 28% were recorded as having SEN with a statement. Furthermore, of the young people accessing youth justice services, over 60% presented with largely unmet speech, language and communication needs[3] . By contrast, most of the children in our network schools, often all of them, go on to further education or work post-GCSE.

On the income spectrum, students from families with low incomes who received Free School Meals (FSM) are four times more likely to be permanently excluded than those who are not eligible for FSM.

The average attendance rate for children in mainstream is 96%, for children in the broad AP sector it is just 67%.[4]

Many primary school teachers know they have students leaving in Year 6, whom they have supported through primary, who are not ready for the larger secondary school environment. They are predicted in advance not to be able to cope. Instead of allowing a direct referral to an AP with a small-school, individually focused approach, the student is typically left to fail in the large school, leaving with no results. This is often due to top slicing in LAs of funds to the local PRU, which leaves less available funds for supporting students outside of the PRU. Recently, the DfE has felt it better students needing support are left in the large secondary environment, even though their learning gap to others continues to widen. If the behaviour of the student becomes an issue to other students, the secondary school might decide it is worth their while to make a referral. However, wanting to save funds, they wait until Year 11,

Department for Education – Key Stage 4 Performance (published 2024 but reflects 22/23 cohort)

4 Centre for Social Justice, May 2020. Warming the Cold Spots of Alternative Provision

AP Challenge Trust 6

Trustees’ report 31 August 2025

as the GCSE exams are approaching and the results effect the school’s academic standing. Current thoughts to keep vulnerable students in large schools, without improving holistic care, does not allow them a chance to get their needs properly met in an environment that supports them, and allows them a fresh start.

Achievements and performance

AP Challenge Trust is governed by five Trustees: Sarah Evans now Sarah Abell, who is the Chair, Nicholas Basden, Timothy Corbett, John Hepburn and Stephen Griffith.

2024-2025

As always the strength of the relationship between the member schools and their respective LA has been key to all APs. Many APs reported increased pressure to take students who had been at Special schools, and who’s needs the AP could not meet properly. The impact of having many more students with such high needs effects the environment for all students, and challenges the role of the AP in the educational offer in the area. As noted before, a continual increase in mental health and wellbeing concerns was noted by all AP members.

The main activity of the Trust in 2024/25 was to: build upon the founding aims and objectives of the network of AP schools; continue linking AP schools with each other; spread best practice within the network; and promote the successes of strong AP schools. Sarah Abell continues to be active in speaking with members. There have been online meetings with groups of AP heads.

The aim had been to use the website for the dissemination of information, and to try to find more local resources for members, especially with an aim to gain more network support from schools dedicated to improving teaching and learning through professional development. However, for the past few years there was a decision not to appoint a person to carry out this job until it was decided what resources would help members. A meeting has been organised by APCT of AP Heads in London for May 12, 2026.

Plans for the future

The Trust plans to continue supporting the spreading of effective practice in AP Schools , with the aim that students who cannot cope in mainstream school have a better chance of having their needs met with more individualised learning, allowing better academic outcomes and life chances. An effort is being made to work with other networks, so there is more unification and collaboration across the sector, including existing PRUs. The Trust had been in discussions to explore ways in which the members in the network might work together. This would enable the Trust’s member schools to have a larger platform from which to continue to raise awareness of the importance of the AP sector within the national educational offer.

Financial Impact –

After Covid-19, the donations from Westside Community Enterprises Limited stopped, and the activities of the Trust became virtual. The legal firm Morgan Lewis kindly provides some pro bono legal advice. Oakname Services Ltd provides accounting support. The Trustees

AP Challenge Trust 7

Trustees’ report 31 August 2025

continue to monitor the finances and have kept a cap on expenditure by using subcontracted part time personnel to handle accounts and IT. There are no premises costs.

Financial review

Results for the year

A summary of the year’s results can be found on page 11 of this report and accounts.

Income amounted to £ £0 (2025 – £0) while activities were reduced, and largely online.

Expenditure amounted to £1,984(2024 – £18,140). The expenditure was on accounting fees. Remaining line items, comprised £ 0 (2023 – £0) of staff costs and £0 (2024 – £0) of support costs.

The accounts for 2025 show a net decrease in funds of £ £17,673 (2024 – net decrease of £17673).

The total net assets in the balance sheet of £31,471 (2024 – £31,471) are stated at market value and funds are unrestricted.

It is confirmed that the Trust’s funds and anticipated income for the coming year is adequate to fulfil the planned charitable activities of the Trust.

Financial review (continued)

Reserves policy

The policy of the Trust is that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six months’ expenditure. The board of Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Trust’s current activities while consideration is given to ways in which additional funds may be raised.

At 31 August 2025, the free reserves of the Trust amounted to £31,471 (2024 – £31,471), which the Trustees believe is sufficient in the above context.

Governance, structure and management

Appointment of Trustees and key management personnel

All Trustees have given their time freely and no Trustee remuneration was paid in the year. Trustees are appointed by the existing board, selected to meet the needs of the Trust.

A new Trustee or new Trustees may be appointed at any time (either by way of replacement or addition). Trustees serve for three years after which they may put themselves forward for re-appointment. The Trustee Board shall consist of at least two persons but (unless otherwise determined by the Trustees) there shall be no maximum number of Trustees that may be appointed.

AP Challenge Trust 8

Trustees’ report 31 August 2025

A Trustee may be appointed or discharged by a resolution of a meeting of the Trustees, provided that a memorandum declaring such appointment or discharge shall be signed as a deed, either at the meeting by the person presiding or in some other manner directed by the meeting and affected by two persons present at the meeting.

The Trustees meet as often as it needs to be effective. At Trustees’ meetings, the Trustees agree the board strategy and areas of activity, including considering grant making, investment, reserves and risk management policies and performance.

AP Challenge Trust 9

Trustees’ report 31 August 2025

Governance, structure and management (continued)

Risk management

The Trustees have considered the major risks to which the Trust is exposed and have reviewed those risks and established systems and procedures to manage those risks.

The major operational risk is the extent to which our grants successfully meet the Trust’s objectives. The Trustees manage this risk by retaining Trustees and a Director of sufficient expertise and skill and gaining advice from experts in the field so as to ensure that their activities continue to meet our charitable objectives.

Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the Trustees’ report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that period. In preparing these accounts, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the accounts comply with the Charities Act 2011, applicable Charity (Accounts and Reports) Regulations and the provisions of the governing documents. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees on and signed on their behalf by:

Trustee

AP Challenge Trust 10

Statement of financial activities Year to 31 August 2025

Notes Total
funds
2025
£		 Total
funds
2024
£
Income from:
Income -Donations
1
Interest Income
Expenditure on:
Charitable activities
2
Net (expenditure) income for the year and net
movement in funds
Reconciliation of funds:
At 1 September 2024
At 31 August 2025		 -
223
(1,985)		 -
467
(18,140)
(1,762) (
17,673
)
31,471 49,144
29,709 31,471

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure is derived from continuing operations during the above two financial periods.

AP Challenge Trust 11

Balance sheet 31 August 2025

Notes 2025
£		 2025
£		 2024
£		 2024
£
Current assets:
Debtors
7
Cash at bank and in hand
Creditors: amounts falling due
within one year
8
Net current assets and net assets
The funds of the Trust:
Unrestricted income funds		 31,149 29,709 —
31,471		 31,471
31,149
1,440		 31,471
0
21,709 31,471

Approved by the board of Trustees and signed on their behalf by:

Trustee

Date:

AP Challenge Trust 12

Principal accounting policies 31 August 2025

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

Westside Education Trust is a Charitable Incorporated Organisation (CIO).

Basis of preparation

These accounts have been prepared for the year to 31 August 2025. Comparative information is provided in respect to the year to 31 August 2024.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The Trust constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the Trustees to make significant judgements and estimates.

The items in the accounts where these judgements and estimates have been made include the allocation of support costs.

In addition to the above, the full impact following the recent emergence of the global coronavirus pandemic is still unknown. It is therefore not currently possible to evaluate all the potential implications for the charity’s activities, beneficiaries, funders, suppliers and the wider economy. Estimates of future income and expenditure flows have been made in assessing the impact of the pandemic on the charity’s financial position and on its going concern (see below).

Assessment of going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

Trustees acknowledge and recognise the potential impact of the Covid-19 pandemic on the future operations of the charity, its beneficiaries, partners and stakeholders and wider society. The reduced opportunities for scheduled face to face interaction may well impact on the ability to plan effectively for the medium term but it is not anticipated at the current time that the overall financial position of the charity will be adversely affected or its financial solvency threatened.

AP Challenge Trust 13

Principal accounting policies 31 August 2025

Assessment of going concern (continued)

The Trustees are of the opinion that the Trust will have sufficient resources to meet its liabilities as they fall due.

Income recognition

Income is recognised in the period in which the Trust has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Donations are recognised when the Trust has confirmation of both the amount and the settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that the donation is subject to conditions that require a level of performance before the Trust is entitled to the funds, the income is deferred and not recognised until either the conditions are fully met, or the fulfilment of these conditions are wholly within the control of the Trust and it is probable that these conditions will be fulfilled in the reporting period.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Trust to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs.

Expenditure on charitable activities comprises staff costs and support costs.

All expenditure is statement inclusive of irrecoverable VAT.

Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the Trust it is necessary to provide support in the form of administrative services.

Governance costs comprise the costs involving the public accountability of the Trust (including audit costs) and costs in respect of its compliance with regulation and good practice.

Support costs and governance costs are apportioned directly to the one charitable activity.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid.

Cash at bank and in hand and short term deposits

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits.

AP Challenge Trust 14

Principal accounting policies 31 August 2025

Creditors

Creditors are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement and the amount of the settlement can be estimated reliably. Creditors are recognised at the amount the Trust anticipates it will pay to settle the debt.

Fund structure

The unrestricted income fund represents funds available for the general charitable purposes of the Trust at the discretion of the Trustees.

Cash flow

The accounts do not include a statement of cash flow because the Trust is exempt from the requirement to prepare such a statement under the Charities SORP (FRS 102).

AP Challenge Trust 15

Notes to the financial statements 31 August 2025

DRAFT

1 Income from: donations

Income from: donations
Total
2025
£
-
-
-		 Total
2024
£
Donations
. Westside Community Enterprises Limited
. Other gifts and donations		 -
-
-

2 Expenditure on: charitable activities

Expenditure on: charitable activities
Total
2025
£
-
-
-
-		 Total
2024
£
Staff costs (note 5)
Support costs (note 3)
Governance costs (note 4)		 -
-
-
-

3 Support costs

Support costs
Website costs
Travel and subsistence
Insurance
Bank charges
Total
Governance costs
Independent examiner’s remuneration – current year
Accountancy fees
Governors’ meeting expenses
Total
Staff costs and Trustees’ remuneration		 Total
2025
£		 Total
2024
£
101
-
444
-		 101
-
439
-
545 540
Total
2025
£		 Total
2024
£
-
1,440
-		 -
3,600
-
1,440 3,600
2025
£		 2024
£
Gross salaries
Employers Pension Contributions
Social security costs
Consultancy fees		 -
-
-		 -
-
-
-
-		 -
-
- -

4 Governance costs

5 Staff costs and Trustees’ remuneration

AP Challenge Trust 16

Notes to the financial statements 31 August 2025

DRAFT

6 Staff costs and Trustees’ remuneration (continued)

There was [no employee] employee during the year (2025 – one employee) who was involved in the co-ordination and direction of the work of the Trust. No employees received remuneration in excess of £60,000 during the year (2024 – none).

No Trustee received any remuneration in respect of their services during the period (2025 – none).

No Trustees were reimbursed for expenditure incurred in the performance of their duties during the period (2024 – none).

The key management personnel of the Trust in charge of directing and controlling the Trust comprise the Trustees. The total remuneration (including taxable benefits but excluding employer's pension contributions) of the key management personnel for the period was £ 0 (2024 – £nil).

7 Taxation

AP Challenge Trust is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

8 Debtors: amounts falling due within one year

2025
£		 2024
£
Other debtors - —
Creditors: amounts falling due within one year 2025
£		 2024
£
Accruals and deferred income 1,440 -
1,440 -

9 Creditors: amounts falling due within one year

10 Related party transactions

No Related party transactions

AP Challenge Trust 17