Cash for schools will be dished out in a simpler way under new arrangements agreed by Derbyshire County Council.
The Government is changing the way schools receive their budgets because the current system is complex and can result in inconsistent and unfair allocations.
Members of the Cabinet agreed to changes which will simplify the process, make it more transparent and easier to understand.
The changes will come into effect from 2013/14.
Coun Mike Longden, Derbyshire County Council’s Cabinet Member for Education, said schools would be offered support during the process.
He said: “Inevitably, when changes are made to the way resources are allocated there will always be winners and losers.
“The Government recognises these changes will mean some schools will receive less money and has put in place arrangements to ensure year on year loses are kept to manageable levels, generally speaking losses will be capped at no more than 1.5% per pupil.
“Unlike other parts of the public sector, schools’ funding has been largely protected from the full impact of the deficit reduction measures.
“The Government’s Pupil Premium funding, which will help the most disadvantaged pupils, is also set to rise by 50% next year.”
The county council has consulted with members of the Schools Forum and schools, which largely supported the council’s approach.
Instead of taking in to consideration up to 40 different factors when allocating school budgets this will be limited to a maximum of 12 under the new system, providing a more consistent and simple approach.
Coun Longden added: “We are committed to implementing the national changes as sensitively as possible and will continue to support schools to manage the impact locally.
“The excellent achievement of our pupils is paramount and everything we do is focused on supporting their continuing improvement.”