From September, schools themselves will be able to train the best graduates as teachers under the new School Direct programme, in the subjects they need, giving them more control of how new teachers are recruited and trained.
Up to 900 places will be available this year and the programme will be expanded over the next few years, as it is opened up to all schools.
Teaching schools, academies and outstanding schools will take the lead in their areas.
They will also be able to choose which accredited provider they use, for example a top university or Teaching Schools Partnership.
From September 2013, there will also be a new employment-based route into teaching for around 5,000 career changers, as part of School Direct, which will replace the Graduate Teacher Programme.
The Department for Education said that there had been problems with recruitment to the scheme, which has not always targeted high-fliers, as well as restrictions for some schools over salaries and training.
Currently around 30,000 teacher training places are allocated to a network of ITT providers for qualifications-based courses.
However, ministers say that too many trainees end up in courses which are only rated as satisfactory by Ofsted.
The Government wants to crack down on poor teacher training colleges, and drive up the quality of other initial teacher training providers.
ITT providers that are rated outstanding by Ofsted will receive guaranteed allocations of places for two years at least, while good providers will receive some allocations, but no guaranteed places.
These providers will be able to supplement their central allocations by working with schools to train their School Direct trainees.
Providers that are rated as ‘satisfactory’ or ‘requires improvement’ under the new Ofsted framework will not be allocated trainee places, and providers that receive two consecutive ratings of ‘required improvement’ will be closed down.
Speaking to delegates at the National College Annual Conference in Birmingham, yesterday, Michael Gove said, ‘The idea is a simple one: take the very best schools, ones that are already working to improve other schools, and put them in charge of teacher training and professional development for the whole system.
'The impact of these changes on initial teacher training will be revolutionary. By the end of this Parliament well over half of all training places will be delivered by schools.’
In other proposals top graduates who train as primary specialist maths teachers, and who have a grade B or above in ‘A’ Level maths will receive an extra £2,000 on top of current bursaries.
Trainee teachers on the School Direct scheme who spend most of their training in a challenging school will receive £5,000 more from September.
Challenging schools training teachers through School Direct will also receive up to £2,000 in extra funding to offer higher salaries or better training.
More funding for top graduates
Mr Gove also announced the expansion of Teach First, the charity which recruits top graduates to work in schools where more than half of pupils come from the poorest 30 per cent of families.
Funding of £32.4m will be allocated to help train 1,250 graduates, three times the current intake, with most of the funding going to Teach First’s 14 university training partners.