The cash award will be given to the 50 schools making the best use of the pupil premium, which is worth £600 per child this year - £1.25bn in total.
Clegg argued that every aspiring new teacher should see working with disadvantaged children as “a crucial step to the top”.
He added that the School Teachers Review Body would look at giving schools the flexibility to use pay to hold onto the best teachers, giving excellent teachers incentive to work in challenging schools.
But while schools are free to use the pupil premium however they see fit, Clegg warned that they will be held accountable for what they achieve.
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