There are suspicions from Labour that the Government is looking to introduce bulk funding in schools.

Briefings from the Ministry of Education to new minister Hekia Parata say more "flexibility" is needed for boards and principals when looking at funding choices.

Labour MP Chris Hipkins says that signifies an ideological focus, on inputs rather than outputs.

"They're talking about more flexible funding models for schools and not having staffing separated from operational funding, basically that's bulk funding," he says.

"It was hugely divisive in the education sector the first time they tried it, that's what they want to go back to."

He says bulk funding results in schools having to choose between employing quality teachers and buying textbooks.

The briefing is also labelling some schools as "non-essential", saying some small schools are expensive to maintain and the ministry needs to consider closing schools with small rolls.

Mr Hipkins wants the minister to explain just what a "non essential school" is.

"Parents, the kids, and the teachers need to know if their school is regarded as a non-essential school, bear in mind that Bill English spent years campaigning against school closures saying parents should have the choice."

He's also unhappy by Treasury's idea that classroom sizes be increased, saying you can't make broad brushed policy decisions about class sizes.

"So for some kids being in a big class or a small class might not make much difference but for underachieving kids, and they're the ones we've really got to focus on, they're the real problem area, it makes a difference."

The primary teachers union agrees with the idea of improving teacher quality, but says it shouldn't come at the expense of classroom numbers.

NZEI president Ian Leckie says parents have lobbied for 20 years to reduce class sizes and the financial savings need to be made in other ways.

"It's totally a contradiction to say we want teachers to be more effective and improving teacher quality is just that, but in the process we'll put more children in their class as well."

But the controversial proposal to increase classroom sizes has the backing from one of our leading education experts.

Melbourne-based professor John Hattie says any measure taken to improve the quality of teachers can't be bad.

He says the most important thing is that the money saved by increasing class sizes is invested.

"I think the professional development that can be offered is quite powerful, sometimes two or three times the effect that you get from reducing class size, I think there's a tremendous number of other things."

Mr Hattie says the New Zealand education system ranks amongst the top ten in the world so there'd be no harm in increasing pupil numbers.

Education Minister Hekia Parata has yet to comment on the proposals but Finance Minister Bill English says the Government is happy with the track it's currently on.

Some of the information about how to get value for money was withheld under the Official Information Act.