Unequal Returns

Since its introduction in 2011, over £27 billion has been allocated to mainstream schools across England through the Pupil Premium (PP) – a policy designed to raise attainment for disadvantaged pupils through targeted funding.

Yet 14 years on, the stark reality is that attainment gaps between disadvantaged pupils and their peers have barely narrowed. This raises serious questions about whether the policy – in its current form – remains fit for purpose.

Education is often described as the great equaliser. But for too many children in England, it has failed to deliver on that promise. Disadvantaged pupils continue to fall behind – with gaps emerging early, widening through school, and shaping long-term life chances.

The COVID-19 pandemic intensified these inequalities – disproportionately affecting pupils from low-income and unstable households. At the same time, the landscape of disadvantage has shifted. Rising in-work poverty, changes to Universal Credit, recent reforms to the eligibility criteria for free school meals (FSM), and growing housing insecurity mean more children face barriers to learning that are not captured by the PP model.

Despite significant investment, too many pupils most in need of support are being left behind. This is not just a question of how much is spent – but how effectively funding is targeted. The current model relies on a binary, outdated measure of disadvantage and allocates funding in ways that are not always proportionate to need.

This report sets out the case for fundamental reform. Drawing on new analysis of funding and the most recent data on attainment outcomes, it argues that the PP funding model must evolve into a smarter, more precise system – one that better reflects the realities of modern disadvantage and delivers real impact for the children it was created to help.