Hartlepool is to get more than £1million to improve school buildings and create more places for children at primary and secondary level.
Education chiefs say the town needs to make almost 430 primary and secondary new school places by the year 2020.
And education secretary Justine Greening says that a £2.4billion investment nationally will help areas such as Hartlepool to achieve its aims.
Hartlepool is to get £443,469 towards creating the new places, while the town will also get £1,088,195 towards improving school facilities.
As part of its “Plan for Britain”, the Government says it wants every child to have access to a ‘good’ school place, giving them the skills and knowledge they need to succeed in the future.
Local councils say they need to create over 230,000 primary and secondary school places nationally between 2017 and 2020.
Government bosses argue that the funding which has been announced will provide a further boost to the its drive to help create over 600,000 extra places by 2021, which will generate additional capacity to meet demand.
The Government has said it is also considering wider proposals so that school standards continue to rise by creating more ‘good’ places in every part of the country.
Ideas include lifting the ban on new grammar schools - on the strict condition they improve the education of other pupils in the system - as well as using the expertise and resources of universities, independent and faith schools.
Ms Greening said: “Our Plan for Britain is to build a fairer society, with a good school place available for every child.
“This £2.4billion investment, together with our proposals to create more good school places, will help ensure every young person has the opportunity to fulfil their potential.”
Council chiefs in Hartlepool have cautiously welcomed the money.
A spokesman said: “The School Condition Allocation is pretty much what we were expecting and will enable us to maintain and improve our schools so that the children and young people of Hartlepool can learn in safe, secure and stimulating environments.
“The Basic Needs Allocation will allow the council to work with partners to ensure that there are enough school places for all of the families in Hartlepool.
“This includes working with residential housing partners who will be building new homes in town over the coming years, as outlined in our Local Plan.”