Speaking at the Labour Party conference in Manchester, Balls said junior children's minister Kevin Brennan would reveal details of the new policy later this week.
Balls also used his speech to announce the formation of the first trust to help schools meet the requirements of the National Challenge school standards improvement programme.
"It is because we believe that every child can succeed that our National Challenge will ensure every local school is a good school with £400m of extra support to make it happen," he said.
"The first National Challenge trust we are announcing today is getting up to £1m of new investment and will help schools collaborate with one another to drive up standards."
He also promised an acceleration of the government's academy schools programme, which he described as a "progressive Labour policy that in community after community is breaking the link between poverty and attainment".
The government will also seek to get mums and dads more involved in their children's education by looking at whether complaints procedures for parents should be strengthened.
He also said the government was investigating how to give parents a bigger say in the creation and operation of local schools and promised a "new generation" of co-operative trust schools.
Balls said the government would introduce laws to create a body that will agree on the terms and conditions for school support staff and to ensure all teachers have time to focus on "inspiring and teaching our young people".
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