Schools in England must do more to ensure funding from the pupil premium is targeted to the disadvantaged pupils it is intended for, Ofsted says.
Chief inspector Sir Michael Wilshaw says heads must be able to demonstrate how the extra funding for low-income children is raising their attainment.
The cash - £600 per pupil this academic year - is a flagship coalition policy.
Sir Michael also warns bright pupils are being failed by mixed ability classes and early entry for GCSEs.
Of 117 head teachers surveyed, only 10%, all of whom led schools in deprived areas, said the extra cash from the pupil premium had "significantly" changed the way they worked, the schools watchdog found.
Half of the schools surveyed thought the pupil premium was having a positive impact on raising achievement, but few could provide evidence to back this up.
THE PUPIL PREMIUM
- The pupil premium was introduced in April 2011 for pupils in England from low-income families
- In 2011-12 it was set at £488 per pupil - £625m in total and in 2012/13 it rose to £600 - £1.25bn in total
- The premium is available for children eligible for free school meals and pupils in care
- It has been extended from 2012-13 to pupils who have been eligible for free school meals at any point in the past six years
- Schools are free to spend the extra funding as they see fit but from September 2012, the government requires schools to publish information about how they use it
- There is also a service premium for children whose parents serve in the armed forces; this was £200 in 2011-12 and rose to £250 for 2012-13
Sir Michael said: "The big issue is that this money is for our poorest children to ensure that they achieve as well as others who come from more privileged backgrounds. It is simply not good enough for heads of schools to say that it is not changing policy.
"Schools have to look seriously at this - if the money is being subsumed into main budgets, as most of it is, then that's fine, as long as schools can demonstrate that this money is going to help the poorer youngsters to achieve what their richer colleagues can achieve."
Sir Michael said many schools used the extra funding to employ more teaching assistants, with the number of these rising from 80,00 in 2000 to 220,000 in 2011.
"It's rather worrying that the pupil premium is being used to appoint teaching assistants when we know they don't have the same impact as good teachers and good teaching."
A spokesman for the Department for Education said: "We have given schools the freedom to use the additional funding in innovative ways.
"However, it is vital they use it to boost results for the most disadvantaged pupils, drawing on the large amount of evidence on how to make the biggest difference."
High achieversThe chief inspector also criticised schools for their policy of entering children early for GCSE examinations, saying the very brightest were losing out on getting the top grades.
Data collated by Ofsted showed a sharp increase in early entries for maths and English GCSE over the past six years, with about a third of pupils sitting exams early.
In 2005 9,000 pupils took English GCSE early, rising to 241,000 in 2011. In 2005 24,000 took maths early, rising to 218,000 in 2011.
"Start Quote
End Quote Sir Michael Wilshaw Chief inspectorEarly entry hurts the chances of the most able children getting the top grades of A*, A and B "
Sir Michael said that school league tables - where schools are measured by how many pupils achieve five A*-C GCSEs including maths and English - often provided a "perverse incentive" for heads to get as many children as possible achieving a C, rather than pushing high fliers to achieve top grades.
The watchdog found of those pupils who were the highest achievers at primary school (reaching Level 5 in national curriculum tests, known as Sats), just 37% (63,523) got a grade A or A* in English GCSE in 2011 after being entered early.
However, 49% (109,236) of these pupils scored an A or A* when they sat the exam at the standard time.
Similarly, in maths, 43% (57,303) of primary school high achievers got an A or A* when entered early compared with 54% (119,710) entered at the standard time.
Sir Michael said: "Early entry hurts the chances of the most able children getting the top grades of A*, A and B, which they need to progress to A-level and certainly to university.
"We will be critical of schools using early entry except where they are absolutely confident that youngsters are reaching their full potential. By full potential we mean A* and A actually if they are bright youngsters."
Publishing a report on how schools can improve their Ofsted rating, Sir Michael said schools should be wary of having low expectations of pupils, failing to track the progress of pupils sufficiently and "the curse of mixed ability classes" without skilled and targeted teaching.
"This is not a judgment on mixed ability as opposed to setting or streaming, it is saying where there are mixed ability classes unless there is differentiated teaching to groups of school children in the class, unless there are individual programmes of work, it doesn't work."
A spokesman for the Department for Education said: "Some pupils are being entered before they are ready, and 'banking' a C grade, but their performance at Key Stage 2 suggests that if they had continued to study the subject and taken the GCSE at the end of Year 11, they could have achieved a top grade."
20 Sep, 2012
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Source: http://www.bbc.co.uk/news/education-19649306#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
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