The move, which is part of government plans to make PSHE compulsory in all maintained schools, is intended to provide all young people with information on issues such as body image, personal finances, alcohol and drugs, and sex and relationships.
It follows the recommendations of Sir Alasdair Macdonald, headteacher of a top performing inner-city multi-faith secondary school, who led an independent review on PSHE earlier this year.
In the past, parents had the right to withdraw their children from such lessons up to the age of 19.
But Balls said it is important that all young people receive at least one year of sex and relationships education (SRE) before their 16th birthday.
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