Thank you, acting Presiding Officer.

The gap in levels of attainment between learners from disadvantaged backgrounds and their peers is an international challenge. The basis of the gap is historic and complicated; it’s rooted in inequality, disadvantage and class systems. Whilst Wales is not unique, we do face specific challenges. That is why I’ve placed narrowing the gap at the heart of our national mission to raise standards and deliver an education system that is a source of national pride and enjoys public confidence.

Since the introduction of the pupil development grant, more than £394 million has been made available. This has supported the equivalent of over 450,000 learners, and we are seeing progress. But it is clear there is no quick fix. We have to think long term, and that’s why we're increasingly focusing on the early years and on early intervention.

Time and time again, I’m told how important the PDG is. It is having a real impact in raising aspirations; building confidence; improving behaviour and attendance; and involving families in their children’s education, all of which are essential building blocks in ensuring that children and young people reach their full potential. This feedback is backed up by the PDG evaluation that we published in December, which highlighted that it’s considered invaluable by schools.

However, there’s much more to do if our more disadvantaged learners are ever to achieve on a par with their peers, and that is very clear from the 2017 GCSE results. Whilst the old and new measures are not comparable, it is clear that EFSM learners were less resilient in dealing with the changes last summer, and looked-after children were less resilient again. But we did see some excellent examples of schools bucking the trend, where their EFSM learners actually out-performed their non-EFSM peers. We are working hard to understand what these schools did differently and to ensure this excellent practice is shared and built upon.

It's also important not to lose sight of the significant progress made in attainment levels over recent years. More than one in three EFSM learners achieved the level 2 threshold in 2016, compared to one in five in 2009. And 23 per cent of our looked-after children reached that level in 2016, compared with just 13 per cent in 2013. But we know that this single measure of educational success is not reflective of a modern education system. Performance measures need to drive an inclusive and diverse curriculum benefiting all pupils, so we are developing a suite of measures that will focus on progress and added value, as well as overall attainment.

In the meantime, we are further expanding the PDG to provide an enhanced support package for our disadvantaged learners. From this month, I have increased the early years PDG from £600 to £700, building on the doubling of financial support last year from £300 to £600, and reflecting the importance of early intervention in breaking down those barriers that are often created by poverty and disadvantage. I have expanded the definition of PDG to give schools greater flexibility to support learners who have been EFSM in the previous two years. This responds to concerns around the single data collection point being artificial and will drive creativity in the use of the funding.

Crucially, I have also guaranteed allocation levels for the next two financial years. This, together with our commitment to PDG for the remainder of the Assembly term, will provide schools with a level of certainty at a time of significant financial challenge and unpredictability. The imminent roll-out of universal credit is a significant factor in this unpredictability. Having the time to assess and plan for the full implications of universal credit was an important factor in my decision to set allocation levels for the next two years. Whilst the UK Government’s austerity agenda continues to place Welsh public services under the cosh, we can at least offer schools some protection in terms of PDG until March 2020. Members will be aware that the Children, Young People and Education Committee is undertaking an inquiry into targeted funding. Evidence has been presented to the committee suggesting that the PDG isn't always used for all eligible learners, with the focus sometimes being only on those who are struggling academically. Let me be very clear: the PDG is there to support all EFSM learners and looked-after learners, including those who are more able. This position is not new, but I am keen to reinforce its importance and I want to see practitioners building on current good practice.

I was very pleased to hear Estyn recognise, in its evidence to the committee inquiry, that the PDG is one of the areas of decision making that schools make best use of evidence. This is essential in ensuring effective interventions and value for money. Schools can also rely on the support of regional consortia, who are required through the grant to have both a PDG strategic adviser and a looked-after children PDG co-ordinator. As well as providing essential support, leadership and challenge across their regions, these consortia leads are working at a national level with my officials and our raising attainment advocate, Sir Alasdair MacDonald, to deliver a national programme of work to drive progress across the board. This programme will reflect the findings of the forthcoming evaluations of both the early years and looked-after children elements of the grant.

There is no question for me that we have to continue to prioritise narrowing the attainment gap. We have a moral duty to ensure that there is equity of opportunity for all learners to reach their potential, whatever that may be. That is our challenge, and I am absolutely committed to rising to it. Thank you, acting Presiding Officer.