Lewisham schools are losing up to hundreds of thousands of pounds in revenue as fewer pupils from low-income households claim funding they are entitled to through pupil premium.

Pupil premium is a sum of money given to schools each year by the Government to improve the attainment of disadvantaged children, but parents have to register to benefit.

This comes as the borough’s schools face shrinking budgets, with a real-terms reduction of seven per cent, and less funding from central government.

Children and Young People select committee chair councillor Luke Sorba said the Government, which knows pupils are eligible for the funding as it is the same criteria for free school meals, was “wilfully not acting on the information they have.”

“You see news about scroungers eating away at the welfare budget, the under claiming is a much bigger sum,” he told the committee.

The Government set the net household income threshold for pupil premium at £7500, with the rate of funding at £1,320 per primary child, £935 per secondary child and £1,900 per child in looked after care.

Lewisham Council documents show examples of a primary school with an £80,000 reduction in pupil premium funding, and a secondary school facing a £550,000 reduction in pupil premium and sixth form funding between 2016/17 and 2017/18.

The council expected £16m last year from pupil premium, with schools able to decide how best to spend the money.

This can include extra teaching assistance, educational trips, catch-up sessions on maths and literacy, breakfasts clubs and buying laptops and tablets for students.

But council documents show concerns the national threshold will have more negative effects for London families.

“There is a concern with an earning threshold set nationally that London could see a decrease in entitlement,” the documents read.

“London will be disadvantaged if a flat threshold is introduced across England, as higher earnings in London reflect the higher cost of living.

“This will also impact on our schools’ ability to raise the attainment of disadvantaged pupils, as free school meal eligibility is used to determine additional school funding,” the documents continued.