Plans to halve the attainment gap between the poorest pupils in England and their more affluent peers will be set out by the government on Monday.
The schools white paper will detail proposals to change the criteria under which schools receive funding to support the most disadvantaged students.
Disadvantage funding is now allocated based on how many pupils at a school receive free school meals – generally available to children from families with an annual income of less than £7,400.
Labour wants to broaden this criteria, overhauling the funding formula to give greater weight to funding pupils based on family income.
The policy is likely to shift funding for disadvantage payments away from the annual pupil premium payments given to schools for each child eligible for free school meals.
The white paper will also include controversial proposals for local authorities to be able to administer groups of schools through their own multiacademy trusts, and set new minimum expectations for schools to engage with parents.
The “disadvantage gap is as stark today as it was over a decade ago”, Labour said, with only 44% of children in receipt of free school meals achieving a pass of grade 4 or above in GCSE maths and English. This compares with 70% of children who do not qualify for free school meals, the party added.
Bridget Phillipson, the education secretary, said: “These reforms are a golden opportunity to cut the link between background and success – one that we must seize.
“Our schools have made great strides in recent decades. Yet for too long, many children in our country have been let down by a one-size-fits-all system, denied opportunity because they’re poor or because they have additional needs.
“Our schools white paper presents the blueprint for opportunity for the next generation, with an education system that truly serves every child, whatever their needs and wherever in the country they grow up.”
At present, disadvantage funding for schools costs about £8bn a year. There is no guarantee the pot would be increased to reflect the proposed changes, with government sources saying this would be determined at the next spending review.
Some MPs and campaigners have questioned how effective these proposed reforms will be without more guaranteed funding.
Munira Wilson, the Liberal Democrat education spokesperson, said: “Basing funding on income alone risks hard-wiring regional inequalities into the system.
“Instead of reshuffling a fixed pot of money – risking new cliff edges that will leave struggling families even worse off – ministers must restore the pupil premium to its 2015 real-terms value.
“Starmer must also guarantee that any investment will rise with inflation, so no child is left without the support they need.”
Pepe Di’Iasio, general secretary of the Association of School and College Leaders, said: “We very much agree with the provision of more targeted funding for schools supporting the most disadvantaged children and have advocated for such a measure for several years.
“However, it is vital that this is done through additional investment into the education system, rather than distributing the same pot of money in a different way, with the risk of creating winners and losers.”
The white paper will also outline plans for two new programmes – Mission North East and Mission Coastal – to tackle the performances of deprived pupils in certain parts of the country. The Guardian understands the precise locations for these initiatives have yet to be decided.
They will be based on the London Challenge, a New Labour project aimed at driving up attainment in secondary schools in the capital that focused on schools working together to share learning and ideas. It was praised by Ofsted for helping to improve educational standards.
The government is also planning a radical overhaul of the special educational needs (Send) system as part of its plans. It plans to give every child with Send an individual support plan.
However, some Labour MPs are thought to be nervous about some of the plans, particularly whether parents will retain 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 for further consideration of the Send proposals.
Ministers are also expected to announce new attendance targets in an effort to recover 20m lost school days a year.
It will propose pay rises for newly appointed headteachers to incentivise them to work in parts of the country where the need is greatest. This could be worth up to £15,000 to individual teachers.
