The supplementary grant was first introduced in 2018, as FSM eligibility was expected to increase as a result of the roll-out of universial credit. It was to provide transitional protection to provide schools with additional funding, to help them meet the costs of providing more pupils with FSM before the lagged system caught up.
It was originally set up for two academic years (2018/19-2019/20), however, as a result of the economic impact of the coronavirus pandemic, FSM has continued to increase.
To mitigate the impact on schools, the grant will be extended for one additional year, meaning schools will receive funding for increases in FSM eligible pupils between October 2019 and October 2020, at a per pupil rate of £45.
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First published 26 February 2021