Promises a new indexing system will be a better model than deciles were for students, at schools that are deemed low on that scale.

The Government's officially ditching the decile system and replacing it with an index that will fund schools based on risk assessments of students who go there.

It will also remove the decile labels, making the funding of schools anonymous.

Prime Minister Bill English said this will encourage a stronger focus on what educational achievement schools can actually demonstrate rather than having a decile rating that defines them.

"A group of students from a decile one school said to me they were tired of having to explain why they weren't hopeless. This is not a burden we should be putting on our young people."

However, New Zealand First leader Winston Peters said eight weeks out from an election you have to be highly suspicious of an announcement like this.

"In fact that if you are hell bent on privatisation, anonymity is the very quality that you would aspire to."

The Labour Party are also sceptical of the announcement, with education spokesman Chris Hipkins saying they are not making any real changes.

"They can carve it up whichever way they want but the reality is schools are desperate for more money and this announcement doesn't give them any hope they are going to get it."

Hipkins said it won't change a thing.

"For example if it becomes public that your school has got many more parents in prison than the school down the road, which is going to create more stigma the decile funding or that information. I think that information could well create huge stigma for schools."