The Department has developed and published a new deprivation indicator based on Tax Credit data.

Tax Credit data is available on a more finely-grained geographical basis than the deprivation indicators previously used to distribute funding to local authorities, and its use will mean that we are better able to reflect the circumstances of the children in an authority's schools, rather than deprivation in the children who live in an authority.

This will mean, for example, that where pupils from deprived backgrounds cross local authority boundaries to go to school in a less deprived authority, this will be reflected in the funding the authority receives. The new indicator has been used to distribute three funding streams over the period 2008-11:

  • for pockets of deprivation within the DSG
  • for the extension of the Early Years entitlement, through the Standards Fund
  • for further extended schools funding, through the Standards Fund.

The Tax Credit Deprivation Indicator contains:

  • the Tax Credit Deprivation Indicator at local authority and school level
  • guidance on the indicator
  • Frequently asked questions
  • School Level Deprivation Indicator
  • Deprivation Indicator at local super output level.