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Schools should receive their final payment for eligible pupils 18 months after they leave school, on condition that the child is in education, employment or training at that point.
Jo Nicholas, head of research for the Children's Food Trust, said the proportion of eligible pupils who received free lunches had dropped from nearly 87% to 83% in the course of a year.
The average annual cost per head for home to school transport – including free buses and taxis for eligible pupils – is £93 per child in rural areas, compared with £10 per child in cities and towns.
County leaders say current funding from central government does not sufficiently take into account the higher proportion of eligible pupils in rural areas and they say the problem has been made worse by dramatic reductions in rural bus routes.
School enrollment through high school reached 70 percent of eligible pupils, up from 55 percent, and average per capita income doubled to more than $10,000 in the 135 countries for which numbers were available.
It says this year it will pay a flat rate of £2.30 for each meal taken by newly eligible pupils.
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An extra £488 per eligible pupil was allocated in 2011-12, rising to £623 in 2012-13.
In the current financial year, the sums are £900 per eligible pupil in secondary education and £953 in primary school.
In reality, these pupils are more deprived on average than FSM-eligible pupils are.
However, if schools are then judged on the gap in achievement between eligible and non-eligible pupils, it may encourage a focus on the former at the expense of the latter, even if they are also low-achieving.
He promised that schools will receive "additional funds to offer targeted help to every pupil eligible for free school meals" and "this pupil premium will grow to an additional £2.5bn of investment each year".
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