§ Mr. Miliband
In introducing the new funding system we want it to reflect better authorities' differing circumstances and needs. All the options are based on evidence that suggests that authorities with significant deprivation, and in particular poverty, need to spend significantly more to achieve the same results for their children. There are two options in which the main indicator for deprivation—the number of children of parents on income support—is supplemented by the numbers of children of parents in receipt of Working Families' Tax Credit. This picks up those children whose parents are in low paid work, and its aim is to reflect a wider definition of poverty. The distributional impact of the options is set out in the consultation document issued on 8 July by the Office of the Deputy Prime Minister.