"Historic" reforms which will see a major overhaul of school funding in England have been confirmed by Justine Greening.

Under a new "national funding formula" (NFF) money will be distributed according to the individual needs of each school, the Education Secretary said.

Ms Greening told the Commons the changes were needed to address "historic inequities in funding that have existed for far too long".

She said: "This is an historic reform.

"It means for the first time the resources that the Government is investing in our schools will be distributed according to a formula based on the individual needs and characteristics of every school in the country.

"Not only will the National Funding Formula direct resources where they are most needed, helping to ensure that every child can get the high quality education that they deserve wherever they live, it will also provide that money through a transparent formula."

Ms Greening said that the £1.3 billion in extra funding for schools she announced in the summer meant overall budgets would rise by around £2.6 billion in total from almost £41 billion in 2017/18 to around £42.4 billion in 2018/19 and £43.5 billion in 2019/20 "It will mean that over the next two years, we will deliver on our manifesto pledge to make school funding fairer," she told MPs.

The Education Secretary said she was increasing the basic level of funding that schools would get for each pupil, and that under the new National Funding Formula, the minimum per pupil funding level in 2019/20 for secondary schools would be at least £4,800 per pupil.

For primaries in England it would be £3,500 by 2019/20.

The Department for Education (DfE) said the NFF would mean a minimum cash increase for every school of 1% per pupil by 2019/20, with the most underfunded schools seeing rises of 3% per pupil in 2018/19 and 2019/20 There would also be a £110,000 lump sum for every school to help with fixed costs, the Department said, and an additional £26 million to rural and isolated schools to help them manage their unique challenges.

Under the new NFF, schools would get basic funding per pupil and then extra cash for additional needs, such as deprivation and low prior attainment of pupils.

The proposals were first laid out for consultation in December last year.

Ms Greening told the Commons: "Our consultation confirmed the importance of funding for additional needs, deprivation and low prior attainment.

"We know that these factors are our best way to identify the children who are most likely to fall behind and to remain behind their peers.

"And it's only right that we provide the greatest resources to the schools that face the greatest challenges."

The £110,000 lump sum for all schools was announced in December, and there would also be a further £26 million for "the smallest, most remote" schools, Ms Greening said, adding that her proposals would also mean a "significant boost" for schools that were the least well-funded.

Secondary schools that would have been lowest funded under December proposals, would gain on average 4.7%, the Education Secretary said, rural schools would gain 3.9% on average, with those in more remote locations gaining 5%.

Geoff Barton, general secretary of the Association of School and College Leaders (ASCL), said the union welcomed the commitment to a new funding formula, and stressed it was "essential" schools were funded fairly.

"Setting minimum funding levels for schools is also a welcome move, but we need to examine whether the levels announced today by the Secretary of State are sufficient," he said.

"We fear they are still way too low to allow schools to deliver the quality of education they want to provide and which pupils need.

"The fundamental problem is there is not enough funding going into education.

"The additional £1.3 billion announced by Justine Greening in July was a step in the right direction.

"But schools have already suffered huge cuts and the additional funding is nowhere near enough to prevent further cuts.

"And the £1.3 billion comes with the caveat that it is one-off funding split over two years, recycled from elsewhere in the education budget.

"The Institute for Fiscal Studies reported that all this additional funding does is to reduce the real terms cut from 6.5% to 4.6% between 2015 and 2019.

"By ASCL calculations, a further £2 billion a year would be needed by 2020 to address this issue."

Labour's shadow education secretary Angela Rayner said Ms Greening's announcement did "nothing to reverse" cuts already faced by schools.

She said the National Audit Office found schools had already lost nearly £2.7 billion since the Conservatives pledged in 2015 to protect funding in real terms.

Ms Rayner asked: "Will she admit to the House that her announcement today does nothing to reverse those cuts and keep that promise?"

She added that the funding formula would mean a "real terms cut in school budgets" because of inflation pressures, and accused Ms Greening of "simply cutting elsewhere to fill in the black hole that the Government itself has created".

She concluded: "I'm glad if the Secretary of State has listened to us and to parents and to teachers across the country and looked again at the funding formula, but the fact is that this does not meet the promises that she has made."

Ms Greening accused Ms Rayner of not being able to do "anything other than rant and produce rhetoric, and there is not a lot of thought behind that rhetoric as to what actually the right thing to do is".

She also defended the efficiency savings being made by the Department for Education to find the £1.3 billion in extra funding.

Ms Greening said it was "important" to challenge civil servants to do the same saving exercises being asked of schools and headteachers.