From the DfE website

• The Government believes that the Pupil Premium, which is additional to main school funding, is the best way to address the current underlying inequalities between children eligible for free school meals (FSM) and their wealthier peers by ensuring that funding to tackle disadvantage reaches the pupils who need it most.
• In most cases the Pupil Premium is allocated to schools and is clearly identifiable. It is for schools to decide how the Pupil Premium, allocated to schools per FSM pupil, is spent, since they are best placed to assess what additional provision should be made for the individual pupils within their responsibility.
• Schools are free to spend the Pupil Premium as they see fit. However, they will be held accountable for how they have used the additional funding to support pupils from low-income families. New measures will be included in the performance tables that will capture the achievement of those deprived pupils covered by Pupil Premium.