The government will launch plans on Monday to halve the attainment gap between England’s poorest pupils and their more affluent peers.
The Schools White Paper outlines proposals to change the criteria by which schools receive funding to support the most disadvantaged pupils.
How many pupils in a school receive free school meals – negative funding is now allocated to children from families with an annual income of less than £7,400, usually available.
Labor wants to widen these criteria, overhauling the funding formula to fund students based on family income.
The policy is likely to shift funding from annual pupil premium payments to schools for negative payments for each child eligible for free school meals.
The white paper includes controversial proposals to allow local authorities to manage groups of schools through their own multiacademy trusts and set new minimum expectations for schools to engage with parents.
“The gap in disadvantage is as clear today as it was a decade ago”, Labor said, with just 44% of children receiving free school meals passing GCSE maths and English at grade 4 or above. This compares with 70% of children not eligible for free school meals, the party added.
Bridget Phillipson, Education Secretary, said: “These reforms are a golden opportunity to reduce the link between background and achievement – we must seize it.
“Our schools have made great strides in recent decades. Yet for too long, too many children in our country have been frustrated by a one-size-fits-all system, denied opportunity because they are poor or have additional needs.
“Our Schools White Paper provides a blueprint for opportunity for the next generation, with an education system that truly serves every child, their needs and wherever they grow up in the country.”
Currently, negative funding for schools costs £8bn a year. There is no guarantee the pot will be increased to reflect the proposed changes, which will be determined in the next spending review, government sources say.
Some MPs and campaigners have questioned how effective the proposed reforms would be without more guaranteed funding.
Munira Wilson, Liberal Democrat education spokeswoman, said: “Revenue-based funding will exacerbate regional inequalities in the system.
“Instead of rolling back the fixed pot – risking new cliff edges and leaving struggling families worse off – ministers should restore the pupil premium to its 2015 real-terms value.
“Starmer must ensure that any investment increases with inflation, so no child is left without the support they need.”
Pepe Diasio, general secretary of the Association of School and College Leaders, said: “We are very much in favor of more targeted funding for schools supporting the most disadvantaged children and have been advocating for such a move for many years.
“However, it is important to do this through additional investment in the education system, rather than redistributing the same money, with the risk of creating winners and losers.”
The white paper also outlines plans for two new programs, Mission North East and Mission Coastal, to address underperforming students in parts of the country. The Guardian understands that the exact locations for these programs are yet to be determined.
They are based on the London Challenge, a New Labor project to improve education in the capital’s secondary schools, with a focus on schools working together to share learning and ideas. Praised by Ofsted for helping to improve educational standards.
As part of its plans, the government is also planning to overhaul the Special Educational Needs (SEN) system. It plans to provide a SEND individual support plan for each child.
However, some Labor MPs are nervous about some of the plans, particularly over whether parents will have the right to appeal if they are unhappy with the level of support their child is receiving.
The White Paper was originally due to be published last autumn, but was delayed to allow further consideration of the proposals submitted.
Ministers are also expected to announce new attendance targets in a bid to recover the 20m lost school days a year.
It proposes a pay hike for newly appointed principals to encourage them to work in areas of the country where the need is greatest. This can be worth up to £15,000 for individual teachers.
