The most deprived secondary schools saw more than double the real-terms cuts to their budgets between 2010 and 2021 than the least-deprived, new analysis shows. The annual report on education spending also shows ministers鈥 promise to bring funding back to 2010 levels by next year is now potentially even further out of reach due to soaring costs. Funding for all schools fell in real-terms over the decade after the Conservatives entered power in 2010, because cash did not keep pace with rising costs or pupil numbers. But analysis by the think tank found that schools serving more disadvantaged pupils 鈥渉ave seen larger spending cuts over time鈥. The most deprived fifth of secondary schools saw spending per pupil fall by 12 per cent in real terms between 2010 and 2021, compared with just 5 per cent for the least deprived fifth. The most deprived schools still have a funding advantage 鈥 because poorer pupils still attract additional uplifts 鈥 but this advantage has shrunk from 31 per cent in 2010 to just 21 per cent in 2021. Pupil premium devalued Since 2015, the value of the pupil premium 鈥 an uplift paid to schools for some vulnerable children and those eligible for free school meals at any point in the previous six years 鈥 has eroded by 14 per cent in real terms. The introduction of a minimum funding guarantee for schools in 2020 also 鈥渄isproportionately benefited less deprived schools鈥. In recent years, in part due to a high-profile campaign by unions, ministers have sought to address the funding crisis brought on by around a decade of real-terms cuts to school budgets. Gillian Keegan, the education secretary, said last year the government鈥檚 current funding settlement 鈥渨ould allow schools to return to at least 2010 levels in real terms鈥. In October, the IFS predicted schools鈥 purchasing power will actually be 3 per cent lower in real terms in 2024 than it was when the Conservatives came to power. In today鈥檚 report, the IFS said schools鈥 spending power would in fact be 4 per cent lower. The situation is worse for sixth forms, whose spending power will be 23 per cent below 2010 levels next year. It comes after no additional school funding was announced in the autumn statement, which focused instead on tax cuts. It also comes amid increasing pressure on ministers to reduce the attainment gap between poorer pupils and their better-off peers. This year, the gap in GCSE attainment between disadvantaged pupils and their better-off peers has widened again, and is at its highest for over a decade. Inequalities ‘magnify’ challenges for poorer schools Luke Sibieta, a research fellow at the IFS, warned of 鈥渋ncreases in educational inequalities since the pandemic, growing hardship due to the rising cost of living, and severe strain on children鈥檚 social services鈥. 鈥淭his magnifies the challenges faced by nurseries, schools and colleges serving the most disadvantaged communities.鈥 Luke Sibieta The analysis also found the gap between secondary and primary school spending has narrowed over time. In the 1990s, secondary per-pupil funding was more than 50 per cent higher than primary. That dropped to around 30 per cent in the 2000s and now stands at 10 per cent. Some of the recent narrowing 鈥渞eflects that primary schools have benefited more from the transfer of responsibilities and funding from local authorities to schools鈥. However, this is 鈥渁lso clearly part of a long-term relative shift in funding and resources from secondary to primary schools”. As a result, over the decade between 2009鈥10 and 2019鈥20, primary school spending per pupil grew by 6 per cent in real terms, whilst secondary school spending per pupil fell by 8 per cent. The pupil population is due to decline by 600,000 or 8 per cent between next year and 2030-31. The IFS said this would 鈥渞everse almost all of the increase in the pupil population since 2010鈥11 and create less demand for school places鈥. However, declining pupil numbers 鈥渨ill only reduce spending needs if schools are able to shrink their costs and staff numbers in equal measure.鈥