Education Secretary Nicky Morgan is pushing ahead with a "national funding formula" for schools, to tackle uneven levels of funding across England.
Mrs Morgan has launched a consultation to replace a system she says is "outdated, inefficient and unfair".
The funding shake-up will also remove local authorities from the process, with cash going directly to heads.
Labour has accused the government of "dodging difficult questions" about who will lose funding in the changes.
Mrs Morgan says schools need funding that "genuinely matches their need".
She says the plans will ensure money goes "straight to the frontline", but it will mark a further reduction in the link between local authorities and schools.
