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<p>The national funding formula for schools includes a deprivation factor that acts
as a proxy measure for schools that are most likely to need extra resources to support
their pupils in reaching their full potential. This is identified through two indicators
- eligibility for free school meals (current eligibility and historic eligibility
through the “Ever6” measure, which records pupils who have been registered for benefits-based
free school meals at any point in the last six years); and the level of relative deprivation
in the postcode where the pupil lives (measured using Income Deprivation Affecting
Children Index, or IDACI). IDACI measures the proportion of children in an area living
in income-deprived families and provides funding based on the relative socio-economic
deprivation of the areas in which their pupils live. By using this measure, we have
broadened the scope of deprivation funding beyond just those who are eligible for
free school meals and the pupil premium.</p><p> </p><p>The Department applies a “banding”
methodology whereby IDACI scores are grouped into seven bands, with each band representing
an increase in the expected level of deprivation. The table below shows the proportion
of pupils aged 4 to 16 in mainstream schools, in each IDACI band, in different regions,
based on the October 2019 census. Band A is the highest level of deprivation, and
band F is the lowest (Band G – which is the least deprived and largest band – is not
shown because it is not funded):</p>
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