EPI calls for new approach to deprivation funding

A report from Education Policy Institute (EPI) has found there is a wide attainment gap between persistently disadvantaged pupils and their non-disadvantaged peers.

This group, who have been eligible for free school meals for 80 per cent or more of their time in school, are significantly behind their peers in educational attainment but the EPI said this is not currently recognised by the school funding system.

In 2023, these gaps were equivalent to nearly a year of learning at the end of key stage 2 and nearly two years by the end of key stage 4.

The current school funding system in England, which includes the National Funding Formula (NFF) and the Pupil Premium, does not differentiate between persistent and short-term disadvantage. This means that persistently disadvantaged pupils, despite their greater needs, do not receive additional targeted funding.

The report set out several expectations, such as prioritising targeted funding for persistently disadvantaged pupils. EPI said these students require additional resources that go beyond the current broad definitions of disadvantage used in the NFF and Pupil Premium.

They also said the DfE should allocate £640 million from the savings made by falling pupil numbers to reverse real terms cuts in the Pupil Premium and also target additional funding specifically for persistently disadvantaged pupils through an enhanced Pupil Premium.

This enhanced premium would be worth a further £308 per primary persistently disadvantaged pupil and £255 per secondary persistently disadvantaged pupil. This funding could be phased in gradually to ensure affordability over the spending review period.

Daniel Kebede, general secretary of the National Education Union, said: "The impact poverty has on children and young people’s education is immense. Hunger, worry, lack of suitable clothing and housing are not burdens shaken off when you enter the classroom.   

"The National Funding Formula is reallocating resources from the most deprived schools to the least deprived schools. We agree with the EPI that this needs to be addressed in order to achieve the Government's mission to break down barriers for disadvantaged pupils. The education system, from early years through to post-16, is in dire need of funding and support. 

"While greater support for persistently disadvantaged pupils is needed within schools, the Government must also remedy the causes, to reduce how many children are living in poverty and break the cycle. The failure to remove the deeply damaging two-child benefit limit or to extend free school meals will entrench poverty for hundreds of thousands of children."