The government is overhauling the school funding system in order to make it fairer for all learning centres in England.
Schools minister David Laws labelled the current makeup of the scheme for allocating money as "historic and out-of-date" and so this announcement is designed to set a process in place that will rectify this issue.
A national funding formula is being worked on and the ultimate aim is to deliver a "fairer and more transparent funding system", Mr Laws stated.
Those in teaching jobs can expect to see a range of changes implemented in 2014-15. For example, local authorities will have to allocate at least 80 per cent of their funding on the basis of pupil characteristics, while a minimum per pupil amount is also being introduced.
In order to deal with concerns about the assistance being offered to rural schools, local authorities operating in rural areas will be able to offer additional funding to learning centres in sparsely populated areas from April next year.
"We will continue to target support on deprived and vulnerable pupils. Local authorities will be required to target additional funding to deprived pupils in addition to the pupil premium.
"We are also making changes to ensure that those pupils who are less likely to attain well at the end of the primary or secondary phase are identified and attract additional funding," Mr Laws remarked.
It is hoped the scheme will help youngsters get better grades at school and improve the overall educational system.
Last month, education secretary Michael Gove insisted he would protect the pupil premium - funding designed to help primary and secondary teachers educating underprivileged children - in the spending review.
Under the terms of the measure, schools receive an additional £900 for any child they teach who has been in care for more than six months continuously, or is currently or has been at some point in the past six years eligible for free school meals.
Posted by Alan Douglas