The pupil premium is money targeted at children from poor backgrounds, and is symbolic of the Government’s apparent commitment to social mobility.
The announcement at the Liberal Democrat Conference must have given delegates something to smile about, but is it likely to make a significant difference?
In their election manifesto, the Liberal Democrats promised a pupil premium of £2.5 billion, but, once in coalition had to settle for £625 million. Over a year later and the pupil premium is set to rise to £1.25 billion in 2012/13 and then to £2.5 billion in 2014/15. On the face of it, it sounds like they have finally got their way. Crucially, the Liberal Democrat manifesto stated that they would do the following:
“Increase the funding of the most disadvantaged pupils, around one million children. We will invest £2.5 billion in this ‘Pupil Premium’ to boost education opportunities for every child. This is additional money going into the schools budget, and headteachers will be free to spend it in the best interests of children.” (2010: 34) 
Notice that they pledged to increase funding, and that the pupil premium would be additional money.
With some schools facing cuts to their budgets, the pupil premium may not turn out to be additional funding.
 Liberal Democrats (2010) Liberal Democrat Manifesto 2010 http://network.libdems.org.uk/manifesto2010/libdem_manifesto_2010.pdf