Diolch, Llywydd. I’m very pleased to open this debate on the Children, Young People and Education Committee’s inquiry on targeted funding to improve educational outcomes and our report, 'On the money?', which we published in June. The aim of our inquiry was to focus on whether Welsh Government's work on using a targeted approach to support disadvantaged pupils to reach their full potential and raise school standards more generally is truly on the money, and what more can be done to get the greatest impact and value for money from a targeted approach. If Wales is to have the first-class, heralded education system we all aspire to, we cannot and should not leave any pupils behind. That is why I'm pleased that the Cabinet Secretary for Education welcomes our report and has accepted 24 of our 31 recommendations and a further three in principle.

The Welsh Government has a well-established approach of targeting additional resources at particular groups of pupils who are at risk of not reaching their full potential. Tackling the negative correlation between deprivation, as measured by eligibility for free school meals, and attainment has been a priority for many years. Of course, some pupils from deprived backgrounds do very well and flourish academically, but we know many more do not. Pupils who are eligible for free school meals—eFSM—who often do well often do so against the odds and in spite of, rather than because of, their circumstances. This is why targeted support and intervention to break these structural inequalities, such as the pupil development grant, is so vital. This is why the committee’s report expresses general support for the principle of targeted funding. However, at £94 million per year, the PDG takes up a significant chunk of the education budget and it's crucial that we get the best possible value for money.

Our report also looked at the Welsh Government’s targeted school improvement programme, Schools Challenge Cymru, which between 2014 and 2017 worked with 39 underperforming schools in Wales. 

Firstly, on the PDG, which is intended to be for every eFSM pupil, including those who are high-achieving but could achieve even more, our inquiry found that the PDG is predominantly being targeted at low-achieving eFSM pupils, and not at more able and talented ones. I am pleased that the Cabinet Secretary has accepted our recommendation on this and has already taken steps to address it.