Pupil premium is additional funding received by schools for each pupil from disadvantaged families or background. It’s allocated to schools based on the number of children who come from low-income families – this is defined as those who are currently known to be eligible for free school meals (FSM). The initiative is based on findings that show that, as a group, children who have been eligible for free school meals at any point in time have consistently lower educational attainment than those who have never been eligible.