The Department for Education has released further information about the Pupil Premium Grant (PPG) allocation process. The PPG, worth £625m in 2011-12 and rising to £2.5bn by 2014-15, will be allocated through the Dedicated Schools Grant (DSG). Schools will receive their DSG from their local authority; Academies will receive theirs from the YPLA.

There will be three ways in which a school can attract PPG funding. Firstly, the full time equivalent (FTE) number of pupils in the school (calculated by adding the total number of full time pupils to half the number of part time pupils) in year groups from Reception to Y11 and known to be eligible for free school meals (FSM) in the January 2011 School Census will qualify for the Deprivation Pupil Premium. Secondly, pupils on roll recorded as Service Children in January 2011 will qualify for the Service Children Premium. Finally, schools will receive the Looked After Children Premium for the number of pupils listed on the 2010-11 Looked After Children Return from Local Authorities.

In 2011-12 the unit cost of the Deprivation Pupil Premium and Looked After Children Premium will be £430 per pupil and the for the Service Children Premium it will be £200 per pupil. Local authorities must allocate this funding to schools. The PPG can be spent on anything the is of education benefit to pupils in the school or other schools, or on community facilities. The grant does not have be spent during the financial year in which it is allocated, some or all can be carried forward for future financial years.

Allocations of the PPG will be confirmed in June 2011 once the 2011 School Census data has been verified. The PPG will be paid in  quarterly instalments on 30: June 2011; 30 September 2011; 31 December 2011; and 31 March 2012. Provisional allocation figures for the Looked After Pupil Premium indicate that this component of the PPG will be worth £17m in 2011-12.

Technical notes for the DSG have also been released. As announced previously, 2011-12 sees many of the school grants from previous years been mainstreamed into the DSG. The DSG will now include the following specific grants:

  • School Standards Grant
  • School Standards Grant (Personalisation)
  • School Development Grant (excluding Area Based Grant allocations)
  • School Lunch Grant
  • Ethnic Minority Achievement Grant
  • 1-2-1 Tuition
  • Extended Schools - Sustainability
  • Extended Schools - Subsidy
  • Targeted Support for the National Strategies
  • Diploma Formula Grant
  • London Pay Addition Grant

The mainstreaming of grants will be taken into account when applying the Minimum Funding Guarantees, which means that no school should see a cash fall of more than 1.5 percent per pupil for these grants in 2011-12 compared to 2010-11. The DSG remains a ring-fenced grant for schools, and local authorities will still be permitted to retain funding centrally to provide services to schools in their region.

The DSG will be paid to local authorities in 25 instalments each year, with the allocations between April and June 2011 being based on the 2010-11 allocations of the DSG and the mainstreamed grants. From June 2011 the allocations will be adjusted to reflect pupil numbers recorded in the January School Census. The first payment based on the January pupil numbers will be adjusted to take into account the DSG paid at the start of the 2011-12 financial year and the amount that is recouped when schools in the region convert to Academy status.

Further details can be found on the DfE website.

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