The Welsh Government has also committed to closely monitoring the impact of the PDG and ensuring value for money, which we welcome. Estyn told the committee that two thirds of schools were using the grant effectively. Both Estyn and the Cabinet Secretary indicated that this was to be expected as it reflects the proportion of schools with good or better leadership. However, the committee believes that we should not be satisfied with a position whereby a third of schools are not using the PDG effectively and would seek further assurances from the Cabinet Secretary on this point.

The PDG has been in place for over six years now, and almost £400 million has been invested in it. The school improvement consortia have now appointed PDG leads in each of the four regions. We recommended that they should do much more to challenge ineffective use of the grant. This is something that the evaluation by Ipsos MORI and the Wales Institute of Social and Economic Research, Data and Methods found was not happening sufficiently. I welcome the Cabinet Secretary’s acceptance of our recommendations in this area, particularly on how the PDG can be used to improve eFSM pupils' attendance and engagement with their education.

Deputy Presiding Officer, I will now focus on a couple of the recommendations that the Welsh Government has rejected. From 2018-19, the Welsh Government expects schools to use the PDG on pupils who've been eligible for free school meals in either of the previous two years; this provides welcome flexibility. However, schools have not been given any extra money to do this, as their PDG allocations are still based on a one-year eFSM headcount. If the Welsh Government wants schools to adopt a more flexible definition for targeting the grant, the committee recommended that it should commit to fully funding this.

Furthermore, in relation to allocations, the committee recognised the rationale for using the 2016 annual school census data: eFSMs figures were higher in that year, which had enabled more money to be drawn down for the PDG. However, we were concerned about schools that buck the trend and may have had a higher number of eFSM pupils in 2017 or 2018. As such, we called for schools' PDG allocations to be determined by whichever is the higher of their 2016 eFSM headcount or the latest available.

The committee made a number of recommendations about the impact of the PDG on attainment of eFSM pupils and unintended consequences of changes to key stage 4 performance measures. Attainment data shows encouraging progress in narrowing the gap in the attainment of pupils eligible for free school meals and non-eFSM pupils, at least up to 2016. However, the committee was very concerned by what happened following the Welsh Government’s changes to key stage 4 performance measures in 2017, which reduced the weighting given to vocational qualifications due to concerns that pupils were being excessively entered for these.

I know that rates of achievement of the level 2 threshold measures are not comparable between 2017 and previous years. However, what really concerned the committee was the widening gap between eFSM pupils and their peers. We found that there's now a disincentive to schools to enter pupils for vocational qualifications, even where it might be right for that pupil, and this has affected eFSM pupils disproportionately. The committee recommended that the Welsh Government urgently investigate this unintended consequence and learn lessons at the earliest opportunity. We recognise that new interim performance measures have been announced for summer 2019. However, given that the provisional 2018 results show a similar position to 2017, we'd welcome further assurances from the Cabinet Secretary that the 2017 and 2018 eFSM cohorts were not unfairly and adversely affected by the previous changes. How has the PDG mitigated, or failed to mitigate, against this?

The same can be said for looked-after children; their attainment relative to their peers has widened since 2016 after years of good progress in narrowing the gap. Moving on to the element of the PDG for looked-after children and adopted children, I welcome the Welsh Government’s commitment to using the evaluation it has commissioned from ICF Consulting to improve the programme going forward. The committee heard that this aspect of the PDG has been insufficiently strategic until quite recently, when the regional consortia have improved the way they target and administer the grant.

The committee's biggest concern, however, related to the way the PDG is used or not used on adopted children. There are around 4,000 looked-after children in Wales, and an estimated 3,000 to 3,500 adopted children. Whilst the Welsh Government expects consortia to target the PDG at adopted children as well as looked-after children, the funding allocation is based only on the numbers of looked-after children. This means one of two things: either the PDG is not being used for adopted children or if it is, then the per-head amount of £1,150 is effectively diluted by almost half.

I'm really pleased that the Welsh Government has said it will look at how adopted children can be more proactively identified and subsequently supported through the PDG. However, we are disappointed that our recommendation that the PDG is allocated to consortia based on the numbers of both looked-after children and adopted children has been rejected, although we note that the Cabinet Secretary will keep it under review.

Turning to Schools Challenge Cymru, I am pleased that the Cabinet Secretary has accepted our four recommendations, albeit one in principle. Whilst the improvements shown by schools involved in the programme were variable, some schools did extremely well as a result of the extra challenge and support, particularly in the central south Wales region. It is vital that there is no loss of momentum in these schools following the closure of a programme, and I am glad that the Government has agreed that the regional consortia should closely monitor the position. We did hear different interpretations of whether Schools Challenge Cymru was always intended to be time limited, but there was general consensus in our evidence that a programme of this kind really needs to run for longer than three years to have a lasting effect.

The committee noted the Cabinet Secretary's position that Schools Challenge Cymru served its purpose while the consortia were in their infancy and that they can now take on the baton of targeted school improvement in specific schools. But what the committee couldn't really understand was why the decision to discontinue Schools Challenge Cymru came seven months before the evaluation, which the Welsh Government itself commissioned, was completed. We were also concerned to be told of a lack of engagement in learning lessons from Schools Challenge Cymru with those central to delivering the programme, who told the committee that they felt somewhat frozen out.

The committee recommended that the Welsh Government and the consortia do more to learn lessons from Schools Challenge Cymru in order to apply these to school improvement more generally, and I am pleased the Cabinet Secretary has agreed to do this. The committee was concerned that, following the closure of the programme, its annual budget went back to reserves, rather than elsewhere within the education budget. Indeed, this inquiry has highlighted the wider issue of school funding, which has come up time and time again in various inquiries the committee has undertaken. The committee will be examining these issues and the process of allocating school budgets in its forthcoming inquiry into school funding, and this is, of course, a key issue for the 2019-20 draft budget, particularly given the concerns expressed over the level of funding for school budgets.

Finally, Deputy Presiding Officer, I'd like to thank stakeholders for the way they've positively engaged with the inquiry and their invaluable contributions, as well as the schools that we visited. I'd also like to thank the Cabinet Secretary for her positive response to this inquiry and our recommendations. I know the Welsh Government is committed to supporting disadvantaged pupils to reach their full potential and raising school standards more generally. I hope that our report has shown the value of regularly monitoring that Welsh Government's approach is truly on the money.

All our pupils, whatever their background, deserve to receive the greatest impact and value for money from a targeted approach. Thank you.