Education secretary Nicky Morgan has launched a new "national funding formula" for schools, to tackle uneven levels of funding across England.
This has been created to replace a system which Ms Morgan describes as "outdated, inefficient and unfair".
The new funding system will remove local authorities from the process, with cash going directly to headteachers.
Ms Morgan is now taking steps to ensure this new system is in place by next year, following complaints about local anomalies and spending gaps. For example, pupils in Rotherham each receive £500 per year more in funding than those in Plymouth, even though they have similar levels of disadvantage.
The best-funded areas are receiving up to £6,300 per pupil per year, while the worst-funded receive just £4,200.
The government has a manifesto pledge to create a more consistent way to distribute more than £40 billion per year of the core schools budget - and says it wants to end funding rates based on "oddities of history".
Further details were announced in the Chancellor's Autumn Statement, with the promise of a national rate for each pupil and then extra funding for those with additional needs.
Russell Hobby, leader of the National Association of Head Teachers, backed the principle of a fairer redistribution of funding, as well as the shift meaning that more money will go directly to schools.
The Department for Education says the current system is out of date and no longer reflect levels of need. For the new funding formula, there will be a basic level of funding per pupil, with extra support allocated depending on need - such as high levels of deprivation or for schools in high-cost areas.
Posted by Alan Douglas